Synchrony Financial has reported its monthly charge-off and delinquency statistics for the thirteen months ended August 31, 2024. The period-end loan receivables for August 31, 2024, stood at $102.5 billion, a slight decrease from the previous month's $102.7 billion. However, the average loan receivables, including held for sale, increased to $102.1 billion from $101.9 billion in the previous month.
The 30+ delinquency rate for August 31, 2024, remained unchanged at 4.6% compared to the previous month. The net charge-off rate for the same period decreased to 5.6% from 6.2% in the previous month. This decrease was primarily attributed to four less charge-off cycles compared to the previous month.
In comparison to the previous year, there was a 0.2% increase in the 30+ delinquency rate and a 1.1% increase in the net charge-off rate for August 31, 2024. According to the company's statement, these increases reflect the continued impact of moderation in customer payment rates.
The recovery adjustment for August 31, 2024, was 0.1%, which was consistent with the previous month. The adjusted net charge-off rate for the same period was 5.7%, down from 6.3% in the previous month.
Synchrony Financial believes that the presentation of the adjusted net charge-off rate is useful to investors as it represents a monthly measure that is more indicative of both their quarterly and annual net charge-off rates. Following these announcements, the company's shares moved -2.6%, and are now trading at a price of $47.41. Check out the company's full 8-K submission here.
