Synchrony Financial

SYF: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$52.00	Kdz	Qxpqsxlv

Synchrony Earnings: Rising Credit Costs Eat Into Bottom Line

Michael Miller

Jan 23, 2024

No-moat-rated Synchrony Financial reported fourth-quarter results that were in line with our expectations, as rising credit costs more than offset strong loan growth. Net interest income increased 8.8% from last year and 2.4% from last quarter to $4.47 billion. Earnings per share decreased 18.3% from last year to $1.03, which translates to a return on tangible equity of 14.7%. As we incorporate these results, we do not plan to materially alter our $42 fair value estimate.

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