SYF

Synchrony Financial reports increase in delinquency and charge-off rates

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS