Synchrony Financial reports increase in delinquency and charge-off rates

By Tamara Parker • Wednesday, October 16 15:22 • Permanent Link

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ended September 30, 2024. The period-end loan receivables decreased from $102.5 billion in August 2024 to $102.2 billion in September 2024. However, the 30+ delinquency rate increased from 4.6% in August 2024 to 4.8% in September 2024.

The net charge-off rate also increased from 5.6% in August 2024 to 6.4% in September 2024. This increase was primarily due to five more charge-off cycles compared to the previous month. The adjusted net charge-off rate, which includes recovery adjustments, also saw an increase from 5.7% in August 2024 to 6.2% in September 2024.

It's worth noting that the company indicated the continued impact of moderation in customer payment rates as a contributing factor to the year over year increase in the 30+ delinquency rate and the net charge-off rate for the month ended September 30, 2024. Following these announcements, the company's shares moved 5.6%, and are now trading at a price of $56.3. For more information, read the company's full 8-K submission here.

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