Financial tables Synchrony furnished with its Oct. 20 SEC Form 8-K showed its 30-day and 90-day delinquency rates fell year over year as third-quarter net earnings declined 17% to $892 million.
For the quarter ended Sept. 30, net earnings compared with $1.077 billion a year earlier. Diluted earnings per share slipped to $2.68 from $2.86.
The share of loans 30 days or more overdue eased to 4.34% from 4.39%, while the 90-day measure decreased to 2.06% from 2.12%. Synchrony's net charge-off rate fell to 4.79% from 5.16%, and dollar net charge-offs were $62 million lower than a year earlier.
The provision for credit losses rose $120 million from a year earlier to $1.3 billion, mainly reflecting a $30 million reserve build. The year-earlier quarter included a $152 million reserve release.
The lender recorded $49.7 billion in purchase volume, up 8% year over year, and loan receivables grew 3% to $103.3 billion. Net interest income rose $89 million to $4.8 billion. Chief Financial Officer Brian Wenzel said higher average loan receivables and lower funding costs supported that increase. Net interest margin, however, slipped to 15.50% from 15.62%.
Synchrony's board declared a dividend of 34 cents per common share, payable Nov. 16 to shareholders of record on Nov. 5. The figures add credit and lending details to EconoTimes’ earlier coverage of the company’s quarterly earnings.
