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# Synchrony Financial Stock Declines Amidst Delinquency Spike
Published: January 28, 2025
10:12 AM ET
### Key Takeaways
* Synchrony Financial’s profits and earnings underperformed due to escalating expenditures and net interest income that was less than projected.
* The online bank experienced a substantial upswing in the proportion of net charge-offs relative to total average loan balances.
* Net interest income expanded by 3%, yet this was beneath Visible Alpha’s estimations.
Synchrony Financial (SYF) shares decreased by 7% on Tuesday morning as the online bank’s outcomes didn’t meet projections, stemming from elevated credit expenses and a reduction in net interest income.
The financial services firm revealed fourth-quarter earnings per share (EPS) of $1.91 and a revenue surge of nearly 4% year-over-year, reaching $3.8 billion. Both of these figures were lower than analyst predictions gathered by Visible Alpha.
Net charge-offs as a percentage of total average loan receivables were 6.45%, an increase of 87 basis points (bps) compared to 2023 and 96 bps higher than the average for the fourth quarters spanning from 2017 to 2019.
Net interest income grew by 3% to $4.59 billion, propelled by elevated interest rates and augmented loan fees. Nevertheless, analysts polled by Visible Alpha had anticipated $4.61 billion.
Chief Financial Officer Brian Wenzel indicated that the company’s credit measures implemented in mid-2023 and early 2024 persisted in impacting new account and purchase volume expansion during the fourth quarter.
Notwithstanding today’s losses, Synchrony Financial’s stock has appreciated by two-thirds over the past year. Toncoin (TON) Value Forecast for March 26th
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