Synchrony Financial (SYF) Tops Q2 Earnings On Higher Revenues
Zacks Investment Research | Jul 20, 2017 09:21PM ET
Synchrony Financial’s (NYSE:SYF) second-quarter 2017 earnings per share of 61 cents surpassed the Zacks Consensus Estimate by 5.1%. The bottom line also grew 5.1 % from the year-ago quarter.
Results in Detail
The company’s net revenue, represented as net interest income, increased 13% to $3.64 billion, primarily due to strong loan receivables growth. Net interest income after retailer share arrangements increased 16%.
However, other income was down 31% to $57 million, largely driven by an increase in loyalty program expenses.
Loan receivables grew 11% year over year to $75 billion.
Deposits were $53 billion, up 14% from the last-year quarter.
Purchase volume increased 6% from the second quarter of 2016
Provision for loan losses increased 3% year over year to $1,326 million, due to credit normalization and loan receivables growth.
Other expenses increased 8.6% to $911 million, primarily due to business growth.
Sales Platforms Update
Retail Card
Interest and fees on loans grew 12% year over year, driven primarily by period-end loan receivables growth of 10%.
Purchase volume growth was 7% and average active account rose 3%.
Loan receivables growth was broad-based across partner programs.
Payment Solutions
Interest and fees on loans rose 14% year over year on the back of period-end loan receivables growth of 11%.
Purchase volume growth was 6%, adjusted to exclude the impact from the hhgregg bankruptcy, and 11% rise in average active account.
Loan receivables growth was led by home furnishings and automotive.
CareCredit
Interest and fees on loans increased 12% year over year, driven by period-end loan receivables growth of 11%.
Purchase volume growth was 11% and average active account growth was 10%.
Loan receivables growth was led by dental and veterinary.
Synchrony Financial Price, Consensus and EPS Surprise
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