Synchrony Financial falls after Q4 results miss expectations

Synchrony Financial

28/01/2025 13:03

** Shares of consumer lender Synchrony Financial  SYF.N 
fall 5.2% to $66.25 in premarket trading
    ** SYF posts Q4 profit of $1.91/shr, 2 cents short of
analysts' expectations - LSEG data    
    ** Q4 net interest income came in at $4.59 bln, slightly
beneath estimates of $4.62 bln
    ** Net charge-offs (NCO) - debts that are unlikely to be
recovered - as a percentage of total average loan receivables
was 6.45% in Q4, above Street expectations of 6.36%
    ** JPM expects SYF shares to trade down on slight earnings
miss and higher-than-expected NCOs, adding that the focus on the
earnings call will be on purchase and credit outlook
    ** Truist analyst Brian Foran says growth in spend and
accounts is still negative, leading to some concern that pricing
increases are weighing on growth
    ** Customer spending volume decreased 3% in Q4, slightly
impacted by SYF's credit actions between mid-2023 through early
2024
    ** SYF stock soared 70.2% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))