Synchrony Climbs on Q3 Figures

Synchrony Financial (NYSE:SYF) came out Friday with third-quarter financial numbers.

The company, out of Stamford, Conn., announced Q3 net earnings of $1.1 billion, or $1.60 per diluted share; this includes a $326-million pre-tax, $248 million after-tax, or $0.38 per diluted share benefit from a reduction in the reserve related to the sale of the Walmart consumer portfolio, which was completed in October.

Loan receivables decreased 5% to $83.2 billion; excluding the Walmart portfolio from both periods, loan receivables grew 6%. Net interest income increased 4% to $4.4 billion. Purchase volume grew 5% to $38.4 billion; and average active accounts grew 2% to 76.7 million. Deposits grew $3.7 billion, or 6%, to $66.0 billion.

Provision for loan losses decreased $432 million, or 30%, to $1.0 billion, largely driven by the $326 million reserve reduction related to the Walmart portfolio.

Other income increased $22 million, or 35%, to $85 million. Other expense increased $10 million, or 1%, to $1.1 billion.

Said CEO Margaret Keane, "We continue to deliver strong results as we develop innovative and seamless digital consumer experiences driven by our technology and data investments.

"These capabilities have helped us grow organically, enabling the extension of key partnerships, while also helping us win new ones with fast-growing, digital-first partners. Our growth is supported by expanded acceptance and usage in our Home, Auto and CareCredit networks, and is funded through substantial growth in our direct-to-consumer deposit platform."

Shares gathered 67 cents, or 2%, to $34.64