Synchrony Financial has reported its monthly charge-off and delinquency statistics for the thirteen months ending January 31, 2025. The period-end loan receivables decreased from $104.7 billion in December 2024 to $102.2 billion in January 2025. The average loan receivables, including those held for sale, also decreased from $103.9 billion in December 2024 to $102.8 billion in January 2025.
The 30+ delinquency rate remained steady at 4.7% from December 2024 to January 2025. However, the net charge-off rate decreased from 6.9% in December 2024 to 6.2% in January 2025. Additionally, the recovery adjustment shifted from a negative 0.2% in December 2024 to a positive 0.2% in January 2025. This led to an adjusted net charge-off rate of 6.7% in December 2024, which decreased to 6.2% in January 2025.
These figures indicate a decrease in the net charge-off rate and the adjusted net charge-off rate from December 2024 to January 2025, despite the steady 30+ delinquency rate. This suggests an improvement in the company's ability to recover outstanding balances or a decrease in the number of uncollectible balances. The market has reacted to these announcements by moving the company's shares -1.6% to a price of $66.42. Check out the company's full 8-K submission here.
