Synchrony Is Enjoying Strong Loan Growth, but Credit Card Charge-Offs Will Likely Continue to Rise

Synchrony partners with retailers and medical providers to offer promotional financing as well as private label and co-branded general-purpose credit cards. While the company’s promotional financing and installment loans have consistently performed well, its private-label and cobranded credit cards, co-marketed through partnerships with retailers, faced more headwinds both during and after the pandemic, with credit card receivables outstanding falling sharply in 2020 and 2021. This decline can be tied to elevated repayment rates on the company's cards as consumers used fiscal stimulus money to pay down debt.