Synchrony Financial Reports Resilient Consumer Spending and Reaffirms Receivables Growth Outlook
Synchrony Financial reported high-single-digit purchase-volume growth in the early part of Q3, with super-prime and prime customers leading. Despite some pressure on larger-ticket categories like outdoor products, furniture, and health services, overall consumer spending remains resilient amid affordability challenges and higher gas prices. Credit performance is stable but expected to mature as newer accounts age, particularly from Walmart's portfolio and expanded credit offerings. The company currently operates slightly below its long-term net charge-off target of 5.5%–6%, with losses anticipated to rise over time due to seasoning effects. Synchrony reaffirmed its mid-single-digit receivables growth outlook for the year-end, supported by partnerships like Walmart and Lowe's as well as digital initiatives. Long-term through-cycle growth remains targeted at 7%–10%, with improved operating leverage expected in 2027.
Topics: credit performance receivables growth outlook spending trends