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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended September 30,2024ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

2、For the transition period from to 001-36560(Commission File Number)SYNCHRONY FINANCIAL(Exact name of registrant as specified in its charter)Delaware 51-0483352(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)777 Long Ridge Road Stamford,Connecticut06902(

3、Address of principal executive offices)(Zip Code)(Registrants telephone number,including area code)-(203)585-2400Securities Registered Pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon stock,par value$0.001 per shareSYFNew York St

4、ock ExchangeDepositary Shares Each Representing a 1/40th Interest in aShare of 5.625%Fixed Rate Non-Cumulative Perpetual PreferredStock,Series ASYFPrANew York Stock ExchangeDepositary Shares Each Representing a 1/40th Interest in aShare of 8.250%Fixed Rate Reset Non-Cumulative PerpetualPreferred Sto

5、ck,Series BSYFPrBNew York Stock Exchange Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934during the preceding 12 months(or for such shorter period that the registrant was required to file such repo

6、rts),and(2)has been subject to such filingrequirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T(232.405 of this chapter)during the preceding 12 mon

7、ths(or for such shorter period that the registrant was required to submit suchfiles).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,smaller reporting company,or anemerging growth company.See the definitions of“large acce

8、lerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”inRule 12b-2 of the Exchange Act.Large Accelerated FilerAccelerated FilerNon-Accelerated FilerSmaller Reporting CompanyEmerging Growth CompanyIf an emerging growth company,indicate by check mark if the registr

9、ant has elected not to use the extended transition period for complying with any newor revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No Th

10、e number of shares of the registrants common stock,par value$0.001 per share,outstanding as of October 18,2024 was 389,344,383.Synchrony FinancialPART I-FINANCIAL INFORMATIONPageItem 2.Managements Discussion and Analysis of Financial Condition and Results of Operations6Item 1.Financial Statements:Co

11、ndensed Consolidated Statements of Earnings Three and nine months ended September 30,2024 and 202336Condensed Consolidated Statements of Comprehensive Income Three and nine months ended September 30,2024 and 202337Condensed Consolidated Statements of Financial Position September 30,2024 and December

12、 31,202338Condensed Consolidated Statements of Changes in Equity Three and nine months ended September 30,2024 and 202339Condensed Consolidated Statements of Cash Flows Nine months ended September 30,2024 and 202341Notes to Condensed Consolidated Financial Statements42Item 3.Quantitative and Qualita

13、tive Disclosures About Market Risk69Item 4.Controls and Procedures69PART II-OTHER INFORMATIONItem 1.Legal Proceedings70Item 1A.Risk Factors70Item 2.Unregistered Sales of Equity Securities and Use of Proceeds70Item 3.Defaults Upon Senior Securities70Item 4.Mine Safety Disclosures70Item 5.Other Inform

14、ation70Item 6.Exhibits72Signatures733Certain Defined TermsExcept as the context may otherwise require in this report,references to:“we,”“us,”“our”and the“Company”are to SYNCHRONY FINANCIAL and its subsidiaries;“Synchrony”are to SYNCHRONY FINANCIAL only;the“Bank”are to Synchrony Bank(a subsidiary of

15、Synchrony);the“Board of Directors”or“Board”are to Synchronys board of directors;“CECL”are to the impairment model known as the Current Expected Credit Loss model,which is based on expected credit losses;and“VantageScore”are to a credit score developed by the three major credit reporting agencies whi

16、ch is used as a means of evaluating the likelihood thatcredit users will pay their obligations.We provide a range of credit products through programs we have established with a diverse group of national and regional retailers,local merchants,manufacturers,buying groups,industry associations and heal

17、thcare service providers,which,in our business and in this report,we refer to as our“partners.”The terms of the programs all require cooperative efforts between us and our partners of varying natures and degrees to establish and operate the programs.Our use of the term“partners”to refer to these ent

18、ities is not intended to,and does not,describe our legal relationship with them,imply that a legal partnershipor other relationship exists between the parties or create any legal partnership or other relationship.Unless otherwise indicated,references to“loan receivables”do not include loan receivabl

19、es held for sale.For a description of certain other terms we use,including“active account”and“purchase volume,”see the notes to“Managements Discussion and AnalysisResults of OperationsOther Financial and Statistical Data”in our Annual Report on Form 10-K for the year ended December 31,2023(our“2023

20、Form 10-K”).There is no standard industry definition for many of these terms,and other companies may define them differently than we do.“Synchrony”and its logos and other trademarks referred to in this report,including CareCredit,Quickscreen,Dual Card,Synchrony Car Care andSyPI,belong to us.Solely f

21、or convenience,we refer to our trademarks in this report without the and symbols,but such references are not intended toindicate that we will not assert,to the fullest extent under applicable law,our rights to our trademarks.Other service marks,trademarks and trade namesreferred to in this report ar

22、e the property of their respective owners.On our website at https:/,we make available under the Filings&Regulatory-SEC Filings menu selection,free of charge,our AnnualReports on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K and amendments to these reports filed or furnished pu

23、rsuant to Section13(a)or 15(d)of the Securities Exchange Act of 1934,as amended(the Exchange Act)as soon as reasonably practicable after such reports or amendmentsare electronically filed with,or furnished to,the SEC.The SEC maintains an Internet site at www.sec.gov that contains reports,proxy and i

24、nformationstatements,and other information that we file electronically with the SEC.4Cautionary Note Regarding Forward-Looking Statements:Various statements in this Quarterly Report on Form 10-Q may contain“forward-looking statements”as defined in Section 27A of the Securities Act of 1933,asamended,

25、and Section 21E of the Securities Exchange Act of 1934,as amended(the“Exchange Act”),which are subject to the“safe harbor”created by thosesections.Forward-looking statements may be identified by words such as“expects,”“intends,”“anticipates,”“plans,”“believes,”“seeks,”“targets,”“outlook,”“estimates,

26、”“will,”“should,”“may,”aim,“focus,”“confident,”“trajectory,”or words of similar meaning,but these words are not the exclusive means ofidentifying forward-looking statements.Forward-looking statements are based on managements current expectations and assumptions,and are subject to inherent uncertaint

27、ies,risks and changes incircumstances that are difficult to predict.As a result,actual results could differ materially from those indicated in these forward-looking statements.Factors thatcould cause actual results to differ materially include global political,economic,business,competitive,market,re

28、gulatory and other factors and risks,such as:the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated;retaining existing partners and attracting newpartners,concentration of our revenue in a small number of partners,and promotion and support of our

29、 products by our partners;cyber-attacks or other securityincidents or breaches;disruptions in the operations of our and our outsourced partners computer systems and data centers;the financial performance of ourpartners;the Consumer Financial Protection Bureaus(CFPB)final rule on credit card late fee

30、s,including the timing for resolution and outcome of the litigationchallenging the final rule,as well as changes to consumer behaviors in response to the final rule,if implemented,and the product,policy and pricing changesthat have been or will be implemented to mitigate the impacts of the final rul

31、e;the sufficiency of our allowance for credit losses and the accuracy of theassumptions or estimates used in preparing our financial statements,including those related to the CECL accounting guidance;higher borrowing costs andadverse financial market conditions impacting our funding and liquidity,an

32、d any reduction in our credit ratings;our ability to grow our deposits in the future;damage to our reputation;our ability to securitize our loan receivables,occurrence of an early amortization of our securitization facilities,loss of the right toservice or subservice our securitized loan receivables

33、,and lower payment rates on our securitized loan receivables;changes in market interest rates and theimpact of any margin compression;effectiveness of our risk management processes and procedures,reliance on models which may be inaccurate ormisinterpreted,and our ability to manage our credit risk;ou

34、r ability to offset increases in our costs in retailer share arrangements;competition in the consumerfinance industry;our concentration in the U.S.consumer credit market;our ability to successfully develop and commercialize new or enhanced products andservices;our ability to realize the value of acq

35、uisitions,dispositions and strategic investments;reductions in interchange fees;fraudulent activity;failure of third-parties to provide various services that are important to our operations;international risks and compliance and regulatory risks and costs associated withinternational operations;alle

36、ged infringement of intellectual property rights of others and our ability to protect our intellectual property;litigation and regulatoryactions;our ability to attract,retain and motivate key officers and employees;tax legislation initiatives or challenges to our tax positions and/or interpretations

37、,and state sales tax rules and regulations;regulation,supervision,examination and enforcement of our business by governmental authorities,the impact of theDodd-Frank Wall Street Reform and Consumer Protection Act(the“Dodd-Frank Act”)and other legislative and regulatory developments and the impact of

38、 theCFPBs regulation of our business,including new requirements and constraints that Synchrony and the Bank are or will become subject to as a result of having$100 billion or more in total assets;impact of capital adequacy rules and liquidity requirements;restrictions that limit our ability to pay d

39、ividends and repurchaseour common stock,and restrictions that limit the Banks ability to pay dividends to us;regulations relating to privacy,information security and data protection;use of third-party vendors and ongoing third-party business relationships;and failure to comply with anti-money launde

40、ring and anti-terrorism financing laws.For the reasons described above,we caution you against relying on any forward-looking statements,which should also be read in conjunction with the othercautionary statements that are included elsewhere in this report and in our public filings,including under th

41、e heading“Risk Factors Relating to Our Business”and“Risk Factors Relating to Regulation”in our 2023 Form 10-K.You should not consider any list of such factors to be an exhaustive statement of all of therisks,uncertainties,or potentially inaccurate assumptions that could cause our current expectation

42、s or beliefs to change.Further,any forward-looking statementspeaks only as of the date on which it is made,and we undertake no obligation to update or revise any forward-looking statement,including under the headingBusiness Trends and Conditions below,to reflect events or circumstances after the dat

43、e on which the statement is made or to reflect the occurrence ofunanticipated events,except as otherwise may be required by law.5PART I.FINANCIAL INFORMATIONITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONSThe following discussion and analysis of our financia

44、l condition and results of operations should be read in conjunction with our condensed consolidatedfinancial statements and related notes included elsewhere in this quarterly report and in our 2023 Form 10-K.The discussion below contains forward-lookingstatements that are based upon current expectat

45、ions and are subject to uncertainty and changes in circumstances.Actual results may differ materially fromthese expectations.See“Cautionary Note Regarding Forward-Looking Statements.”Introduction and Business Overview_We are a premier consumer financial services company delivering one of the industr

46、ys most complete,digitally-enabled product suites.Our experience,expertise and scale encompass a broad spectrum of industries including digital,health and wellness,retail,telecommunications,home,auto,outdoor,pet andmore.We have an established and diverse group of national and regional retailers,loca

47、l merchants,manufacturers,buying groups,industry associations andhealthcare service providers,which we refer to as our“partners.”For the three and nine months ended September 30,2024,we financed$45.0 billion and$134.2 billion of purchase volume,respectively,and had 70.4 million and 71.1 million aver

48、age active accounts,respectively,and at September 30,2024,wehad$102.2 billion of loan receivables.We offer our credit products primarily through our wholly-owned subsidiary,the Bank.In addition,through the Bank,we offer,directly to retail,affinityrelationships and commercial customers,a range of dep

49、osit products insured by the Federal Deposit Insurance Corporation(“FDIC”),including certificates ofdeposit,individual retirement accounts(“IRAs”),money market accounts,savings accounts and sweep and affinity deposits.We also take deposits at the Bankthrough third-party securities brokerage firms th

50、at offer our FDIC-insured deposit products to their customers.We have significantly expanded our online directbanking operations in recent years and our deposit base has continued to serve as a source of stable and diversified low cost funding for our credit activities.AtSeptember 30,2024,we had$82.

51、3 billion in deposits,which represented 84%of our total funding sources.Our Sales Platforms_We conduct our operations through a single business segment.Profitability and expenses,including funding costs,credit losses and operating expenses,aremanaged for the business as a whole.Substantially all of

52、our revenue activities are within the United States.We primarily manage our credit products throughfive sales platforms(Home&Auto,Digital,Diversified&Value,Health&Wellness and Lifestyle).Those platforms are organized by the types of partners wework with,and are measured on interest and fees on loans

53、,loan receivables,active accounts and other sales metrics.6Home&AutoOur Home&Auto sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through a broadnetwork of partners and merchants providing home and automotive merchandise and ser

54、vices,as well as our Synchrony Car Care network and SynchronyHOME credit card offering.Our Home&Auto sales platform partners include a wide range of key retailers in the home improvement,furniture,bedding,flooring,appliance and electronics industry,such as Ashley HomeStores LTD,Floor&Decor,Lowes,and

55、 Mattress Firm,as well as automotive merchandiseand services,such as Chevron and Discount Tire.In addition,we also have program agreements with manufacturers,buying groups and industry associations,such as Generac,Nationwide Marketing Group and the Home Furnishings Association.DigitalOur Digital sal

56、es platform provides comprehensive payments and financing solutions with integrated digital experiences through partners and merchants whoprimarily engage with their consumers through digital channels.Our Digital sales platform includes key partners delivering digital payment solutions,such asPayPal

57、,including our Venmo program,online marketplaces,such as Amazon and eBay,and digital-first brands and merchants,such as Verizon,the Quratebrands,and Fanatics.Diversified&ValueOur Diversified&Value sales platform provides comprehensive payments and financing solutions with integrated in-store and dig

58、ital experiences through largeretail partners who deliver everyday value to consumers shopping for daily needs or important life moments.Our Diversified&Value sales platform iscomprised of five large retail partners:Belk,Fleet Farm,JCPenney,Sams Club and TJX Companies,Inc.Health&WellnessOur Health&W

59、ellness sales platform provides comprehensive healthcare payments and financing solutions,through a network of providers and healthsystems,for those seeking health and wellness care for themselves,their families and their pets,and includes our CareCredit brand,as well as partners suchas Walgreens.7L

60、ifestyleLifestyle provides comprehensive payments and financing solutions with integrated in-store and digital experiences through partners and merchants who offermerchandise in power sports,outdoor power equipment,and other industries such as sporting goods,apparel,jewelry and music.Our Lifestyle s

61、ales platformpartners include a wide range of key retailers in the apparel,specialty retail,outdoor,music and luxury industry,such as American Eagle,Dicks SportingGoods,Guitar Center,Kawasaki,Pandora,Polaris,Suzuki and Sweetwater.Corp,OtherCorp,Other includes activity and balances related to certain

62、 program agreements with retail partners and merchants that will not be renewed beyond theircurrent expiration date and certain programs that were previously terminated,which are not managed within the five sales platforms discussed above.Corp,Other also includes amounts related to changes in the fa

63、ir value of equity investments and realized gains or losses associated with the sale of businesses andinvestments.8Our Credit Products_Through our sales platforms,we offer three principal types of credit products:credit cards,commercial credit products and consumer installment loans.We alsooffer our

64、 Payment Security program,which is a debt cancellation product.The following table sets forth each credit product by type and indicates the percentage of our total loan receivables that are under standard terms only orpursuant to a promotional financing offer at September 30,2024.Promotional OfferCr

65、edit ProductStandard Terms OnlyDeferred InterestOther PromotionalTotalCredit cards59.2%18.5%14.3%92.0%Commercial credit products1.8 0.1 1.9 Consumer installment loans 0.2 5.8 6.0 Other0.1 0.1 Total61.1%18.7%20.2%100.0%Credit CardsWe offer the following principal types of credit cards:Private Label C

66、redit Cards.Private label credit cards are partner-branded credit cards(e.g.,Lowes or Amazon)or program-branded credit cards(e.g.,Synchrony Car Care or CareCredit)that are used primarily for the purchase of goods and services from the partner or within the programnetwork.In addition,in some cases,ca

67、rdholders may be permitted to access their credit card accounts for cash advances.Credit under our privatelabel credit cards typically is extended either on standard terms only or pursuant to a promotional financing offer.Dual Cards and General Purpose Co-Branded Cards.Our patented Dual Cards are cr

68、edit cards that function as private label credit cards whenused to purchase goods and services from our partners,and as general purpose credit cards when used to make purchases from other retailerswherever cards from those card networks are accepted or for cash advance transactions.We also offer gen

69、eral purpose co-branded credit cardsthat do not function as private label credit cards,as well as a Synchrony-branded general purpose credit card.Dual Cards and general purpose co-branded credit cards are offered across all of our sales platforms and credit is typically extended on standard terms on

70、ly.We offer either Dual Cardsor general purpose co-branded credit cards through over 15 of our large partners,of which the majority are Dual Cards,as well as our CareCreditDual Card.Consumer Dual Cards and Co-Branded cards totaled 26%of our total loan receivables portfolio at September 30,2024.Comme

71、rcial Credit ProductsWe offer private label cards and Dual Cards for commercial customers that are similar to our consumer offerings.We also offer a commercial pay-in-fullaccounts receivable product to a wide range of business customers.Installment LoansWe originate secured installment loans to cons

72、umers(and a limited number of commercial customers)in the United States,primarily for power products in ourOutdoor market(motorcycles,ATVs and lawn and garden).We also offer unsecured installment loans primarily in our Home and Auto and Health and Wellnesssales platforms and through our various othe

73、r installment products,such as our Synchrony Pay Later solutions,including pay monthly and pay in 4 products,forshort-term loans.Installment loans are closed-end credit accounts where the customer pays down the outstanding balance in installments.Installment loans aregenerally assessed periodic fina

74、nce charges using fixed interest rates.Installment loans at September 30,2024 include loan receivables related to AllyFinancial Inc.s point of sale financing business,(Ally Lending)that was acquired in March 2024.9Business Trends and Conditions_We believe our business and results of operations will

75、be impacted in the future by various trends and conditions.For a discussion of certain trends andconditions,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsBusiness Trends and Conditions”in our 2023 Form10-K.For a discussion of how certain trends and condition

76、s impacted the three and nine months ended September 30,2024,see“Results of Operations.”CFPB final rule on credit card late fees.On March 5,2024,the CFPB released a final rule amending its regulations that implement the Truth in Lending Act to,among other things,lower the safeharbor dollar amount fo

77、r credit card late fees from the prior$30(adjusted to$41 for each subsequent late payment within the next six billing cycles)to$8 and toeliminate the automatic annual inflation adjustment to such safe harbor dollar amount.The final rule,when effective,will result in a significant reduction in ourint

78、erest and fees on loan receivables.Industry organizations have challenged the final rule in court,and the ultimate outcome of such challenge,including theimpact on the final rule,is uncertain.The final rule had an original effective date of May 14,2024;however,on May 10,2024,the United States Distri

79、ct Court forthe Northern District of Texas granted an injunction and stay of the final rule,and the injunction granted remains in effect.Due to the pending litigation discussed above,which has resulted in a delay in the final rules effective date,it remains uncertain whether the final rule willbecom

80、e effective in 2024.As a result,the magnitude of the adverse effects to our results of operations in 2024 also remains uncertain.In anticipation that the final rule will become effective,we are in the process of implementing a number of product,policy and pricing changes to adjust for thesignificant

81、 reduction in our late fee income.The effects of these changes have started to be reflected in our Consolidated Statement of Income for the three andnine months ended September 30,2024.While we continue to believe that over time,the strategies we have identified and are in the process of implementin

82、g will fully offset the decline in late feeincome resulting from an effective final rule,it may take time for such product,policy and pricing changes to offset the expected reduction in late fees.Inaddition,we expect that upon the final rule becoming effective,the combined net effects of the final r

83、ule and our mitigating strategies would result in a decreasein payments to partners pursuant to our retailer share arrangements.However,the effects of the final rule are also subject to other factors that could increasethe adverse effects to our results of operations,including our ability to success

84、fully implement the product,policy and pricing changes we have identified,aswell as any potential changes in consumer behavior in response to these changes or the final rule itself.For a discussion of risks related to a CFPB final late fee rule,please see“Risk Factors Relating to our BusinessThe CFP

85、Bs proposed rule on credit cardlate fees,if adopted,would materially adversely affect our business and results of operations”,in our 2023 Form 10-K.Growth in loan receivables and interest income.During the three months ended September 30,2024,we experienced a decrease in purchase volume of 4.3%compa

86、red to the prior year period,primarilydriven by lower consumer spending and the impacts from credit actions we have taken across our portfolio where we have seen indications of higher probabilityof default.We expect these same factors to now result in a low single digit decrease in purchase volume f

87、or the year ending December 31,2024.As a result,while we still anticipate loan receivables to increase for the remainder of 2024,we expect the rate of growth to moderate.All of the factors discussed above and in our 2023 Form 10-K,such as customer payment behavior and the CFPB final rule on credit c

88、ard late fees,willcontinue to have an effect on our loan receivables and interest income.For additional discussion of those factors,please see“Managements Discussion andAnalysis of Financial Condition and Results of OperationsBusiness Trends and Conditions-CFPB final rule on credit card late fees an

89、d Growth in loanreceivables and interest income”in our 2023 Form 10-K.10Seasonality_We experience fluctuations in transaction volumes and the level of loan receivables as a result of higher seasonal consumer spending and payment patternsthat typically result in an increase of loan receivables from A

90、ugust through a peak in late December,with reductions in loan receivables typically occurring overthe first and second quarters of the following year as customers pay their balances down.The seasonal impact to transaction volumes and the loan receivables balance typically results in fluctuations in

91、our results of operations,delinquency metricsand the allowance for credit losses as a percentage of total loan receivables between quarterly periods.In addition to the seasonal variance in loan receivables discussed above,we also typically experience a seasonal increase in delinquency rates and deli

92、nquentloan receivables balances during the third and fourth quarters of each year due to lower customer payment rates,resulting in higher net charge-off rates in thefirst half of the calendar year.Our delinquency rates and delinquent loan receivables balances typically decrease during the subsequent

93、 first and secondquarters as customers begin to pay down their loan balances and return to current status,resulting in lower net charge-off rates in the second half of thecalendar year.Because customers who were delinquent during the fourth quarter of a calendar year have a higher probability of ret

94、urning to current statuswhen compared to customers who are delinquent at the end of each of our interim reporting periods,we expect that a higher proportion of delinquent accountsoutstanding at an interim period end will result in charge-offs,as compared to delinquent accounts outstanding at a year

95、end.Consistent with this historicalexperience,we generally experience a higher allowance for credit losses as a percentage of total loan receivables at the end of an interim period,as comparedto the end of a calendar year.In addition,even in instances of improving credit metrics such as declining pa

96、st due amounts,we may experience an increase inour allowance for credit losses at an interim period end compared to the prior year end,reflecting these same seasonal trends.However,in addition to these seasonal trends,the moderation in customer payment behavior from the previously elevated levels we

97、 experienced in recentperiods,has also significantly impacted our key financial metrics,such as our net charge-off rate,and also the fluctuations experienced between quarterlyperiods.The effects from these changes in customer payment behavior have resulted and may continue to result in either partia

98、l,or in some instances full,offset to the impact from the ongoing seasonal trends discussed above.11Results of Operations_Highlights for the Three and Nine Months Ended September 30,2024Below are highlights of our performance for the three and nine months ended September 30,2024 compared to the thre

99、e and nine months endedSeptember 30,2023,as applicable,except as otherwise noted.Net earnings increased to$789 million from$628 million and to$2.7 billion from$1.8 billion for the three and nine months ended September 30,2024.The increase in the three months ended September 30,2024 was primarily dri

100、ven by higher net interest income and lower retailer share arrangements,partially offset by an increase in provision for credit losses.The increase in the nine months ended September 30,2024 was primarily driven by theafter-tax gain on sale related to Pets Best of$802 million,as well as the same tre

101、nds experienced in the three months ended September 30,2024.Loan receivables increased 4.4%to$102.2 billion at September 30,2024 compared to$97.9 billion at September 30,2023,primarily driven by lowercustomer payment rates and the completion of the Ally Lending acquisition,partially offset by lower

102、purchase volume.Net interest income increased 5.7%to$4.6 billion and 7.1%to$13.4 billion for the three and nine months ended September 30,2024,respectively.Interest and fees on loans increased 7.2%and 10.5%for the three and nine months ended September 30,2024,respectively,primarily driven bygrowth i

103、n average loan receivables,the impact of our product,pricing and policy changes and lower payment rate,partially offset by higher reversals.For the three and nine months ended September 30,2024,interest expense increased 18.5%and 33.8%,respectively,due to higher benchmark ratesand higher interest-be

104、aring liabilities.Retailer share arrangements decreased 6.6%to$914 million and 10.6%to$2.5 billion for the three and nine months ended September 30,2024,respectively,primarily due to higher net charge-offs.Over-30 day loan delinquencies as a percentage of period-end loan receivables increased 38 bas

105、is points to 4.78%at September 30,2024 comparedto September 30,2023.The net charge-off rate increased 146 basis points to 6.06%and increased 164 basis points to 6.26%for the three and ninemonths ended September 30,2024,respectively.Provision for credit losses increased by$109 million,or 7.3%,and$1.0

106、 billion,or 24.3%,for the three and nine months ended September 30,2024,respectively,primarily driven by higher net charge-offs,partially offset by lower reserve builds.The reserve build in the nine months endedSeptember 30,2024 included$180 million related to the Ally Lending acquisition.Our allowa

107、nce coverage ratio(allowance for credit losses as apercentage of period-end loan receivables)increased to 10.79%at September 30,2024,as compared to 10.40%at September 30,2023.Other income increased by$27 million to$119 million,and by$1.2 billion to$1.4 billion for the three and nine months ended Sep

108、tember 30,2024,respectively.The increase in the three months ended September 30,2024 was primarily driven by the impact of our product,pricing and policy changerelated fees,partially offset by the impact of the Pets Best disposition and venture investment gains and losses.The increase in the nine mo

109、nths endedSeptember 30,2024 was primarily driven by the$1.1 billion gain on sale related to the Pets Best disposition.Other expense increased by$35 million,or 3.0%,and$130 million,or 3.8%,for the three and nine months ended September 30,2024,respectively.The increase in the three and nine months end

110、ed September 30,2024 was primarily driven by costs related to the Ally Lending acquisition,technologyinvestments,and preparatory expenses related to the late fee rule change,partially offset by lower operational losses.At September 30,2024,deposits represented 84%of our total funding sources.Total d

111、eposits increased by 1.4%to$82.3 billion at September 30,2024,compared to December 31,2023.12During the nine months ended September 30,2024,we declared and paid cash dividends totaling$51 million on our Series A 5.625%fixed rate non-cumulative perpetual preferred stock and our Series B 8.250%fixed r

112、ate reset non-cumulative perpetual preferred stock.During the nine months ended September 30,2024,we repurchased$900 million of our outstanding common stock,and declared and paid cashdividends of$0.75 per share,or$301 million in the aggregate.In April 2024,the Board of Directors approved an incremen

113、tal share repurchase programof up to$1.0 billion,through June 30,2025,and maintained the quarterly dividend at its current amount of$0.25 per common share.At September 30,2024 we had a total share repurchase authorization of$700 million remaining.For more information,see“CapitalDividend and Share Re

114、purchases.”In March 2024,we sold our wholly-owned subsidiary,Pets Best,for consideration comprising a combination of cash and an equity interest inIndependence Pet Holdings,Inc.The sale resulted in the recognition of a gain on sale of$1.1 billion,or$802 million net of tax.In March 2024,we acquired A

115、lly Lending for cash consideration of$2.0 billion.The assets and liabilities of Ally Lending primarily included loanreceivables with an unpaid principal balance of$2.2 billion.See Note 3.Acquisitions and Dispositions to our condensed consolidated financialstatements for additional information.2024 P

116、artner AgreementsDuring the nine months ended September 30,2024,we continued to expand and diversify our portfolio with the addition or renewal of more than 55 partners,aswell as enter new strategic relationships,which included the following:In our Home&Auto sales platform,we announced our new partn

117、erships with Bel Furniture and The Carpet Guys and extended our programagreements with Associated Materials,BrandsMart and Jeromes Furniture Warehouse.In our Digital sales platform,we announced our new partnership with Virgin Red and extended our program agreement with Cathay Pacific and Verizon.In

118、our Health&Wellness sales platform,we expanded our network through our new partnerships with Bond Veterinary,Lakefield Veterinary Group,LaserAway and Western Veterinary and extended our program agreements with Bosley,Innovetive,LCA Vision and SCI.We also launched theintegration of our CareCredit car

119、d with Pets Best to enable direct insurance claim reimbursement for customers.In our Lifestyle sales platform,we announced our new partnerships with BRP and Gibson and extended our program agreements with CF Moto,Daniels,Dicks Sporting Goods,and EC Barton and Reeds.We added two new strategic technol

120、ogy partnerships with Adit Practice Management Software and ServiceTitan,both of which expand access forcustomers to our suite of credit products.We entered into a relationship with Atlanticus Holdings Corporation to deliver a preferred second look financing solution for private label credit cardsan

121、d installment loan products across our business.13Summary EarningsThe following table sets forth our results of operations for the periods indicated.Three months ended September 30,Nine months ended September 30,($in millions)2024202320242023Interest income$5,785$5,354$16,935$15,161 Interest expense

122、1,176 992 3,516 2,628 Net interest income4,609 4,362 13,419 12,533 Retailer share arrangements(914)(979)(2,488)(2,783)Provision for credit losses1,597 1,488 5,172 4,161 Net interest income,after retailer share arrangements and provision forcredit losses2,098 1,895 5,759 5,589 Other income119 92 1,39

123、3 218 Other expense1,189 1,154 3,572 3,442 Earnings before provision for income taxes1,028 833 3,580 2,365 Provision for income taxes239 205 855 567 Net earnings$789$628$2,725$1,798 Net earnings available to common stockholders$768$618$2,674$1,767 14Other Financial and Statistical DataThe following

124、table sets forth certain other financial and statistical data for the periods indicated.At and for theAt and for theThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Financial Position Data(Average):Loan receivables,including held for sale$102,009$96,230$10

125、1,484$93,198 Total assets$119,389$110,335$119,429$108,209 Deposits$82,487$76,353$82,872$74,750 Borrowings$15,785$14,806$15,924$14,683 Total equity$15,815$13,758$15,318$13,537 Selected Performance Metrics:Purchase volume$44,985$47,006$134,218$135,839 Home&Auto$11,361$12,273$34,369$35,989 Digital$13,3

126、52$13,808$39,383$39,541 Diversified&Value$14,992$15,445$44,348$44,240 Health&Wellness$3,867$3,990$11,936$11,695 Lifestyle$1,411$1,490$4,180$4,372 Corp,Other$2$2$2 Average active accounts(in thousands)70,424 70,308 71,052 69,842 Net interest margin15.04%15.36%14.68%15.17%Net charge-offs$1,553$1,116$4

127、,759$3,218 Net charge-offs(annualized)as a%of average loanreceivables,including held for sale6.06%4.60%6.26%4.62%Allowance coverage ratio10.79%10.40%10.79%10.40%Return on assets2.6%2.3%3.0%2.2%Return on equity19.8%18.1%23.8%17.8%Equity to assets13.25%12.47%12.83%12.51%Other expense(annualized)as a%o

128、f average loanreceivables,including held for sale4.64%4.76%4.70%4.94%Efficiency ratio31.2%33.2%29.0%34.5%Effective income tax rate23.2%24.6%23.9%24.0%Selected Period-End Data:Loan receivables$102,193$97,873$102,193$97,873 Allowance for credit losses$11,029$10,176$11,029$10,176 30+days past due as a%

129、of period-end loan receivables4.78%4.40%4.78%4.40%90+days past due as a%of period-end loan receivables2.33%2.06%2.33%2.06%Total active accounts(in thousands)69,965 70,137 69,965 70,137 _(1)Purchase volume,or net credit sales,represents the aggregate amount of charges incurred on credit cards or othe

130、r credit product accounts less returns during the period.(2)Includes activity and accounts associated with loan receivables held for sale.(3)Active accounts represent credit card or installment loan accounts on which there has been a purchase,payment or outstanding balance in the current month.(4)Ne

131、t interest margin represents annualized net interest income divided by average total interest-earning assets.(5)Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables.(6)Return on assets represents annualized net earnings as a percentage of avera

132、ge total assets.(7)Return on equity represents annualized net earnings as a percentage of average total equity.(8)Equity to assets represents average total equity as a percentage of average total assets.(9)Efficiency ratio represents(i)other expense,divided by(ii)sum of net interest income,plus othe

133、r income,less retailer share arrangements.(10)Based on customer statement-end balances extrapolated to the respective period-end date.(1)(2)(2)(3)(4)(5)(6)(7)(8)(9)(10)(10)(3)15Average Balance SheetThe following tables set forth information for the periods indicated regarding average balance sheet d

134、ata,which are used in the discussion of interest income,interest expense and net interest income that follows.20242023Three months ended September 30($in millions)AverageBalanceInterestIncome/ExpenseAverageYield/RateAverageBalanceInterestIncome/ExpenseAverageYield/RateAssetsInterest-earning assets:I

135、nterest-earning cash and equivalents$17,316$235 5.40%$12,753$172 5.35%Securities available for sale2,587 28 4.31%3,706 31 3.32%Loan receivables,including held for sale:Credit cards93,785 5,236 22.21%90,587 5,003 21.91%Consumer installment loans6,107 238 15.50%3,656 108 11.72%Commercial credit produc

136、ts1,992 46 9.19%1,861 38 8.10%Other125 2 6.37%126 2 6.30%Total loan receivables,including held for sale102,009 5,522 21.54%96,230 5,151 21.24%Total interest-earning assets121,912 5,785 18.88%112,689 5,354 18.85%Non-interest-earning assets:Cash and due from banks847 964 Allowance for credit losses(10

137、,994)(9,847)Other assets7,624 6,529 Total non-interest-earning assets(2,523)(2,354)Total assets$119,389$110,335 LiabilitiesInterest-bearing liabilities:Interest-bearing deposit accounts$82,100$968 4.69%$75,952$800 4.18%Borrowings of consolidated securitization entities7,817 108 5.50%6,096 86 5.60%Se

138、nior and subordinated unsecured notes7,968 100 4.99%8,710 106 4.83%Total interest-bearing liabilities97,885 1,176 4.78%90,758 992 4.34%Non-interest-bearing liabilities:Non-interest-bearing deposit accounts387 401 Other liabilities5,302 5,418 Total non-interest-bearing liabilities5,689 5,819 Total li

139、abilities103,574 96,577 EquityTotal equity15,815 13,758 Total liabilities and equity$119,389$110,335 Interest rate spread14.10%14.51%Net interest income$4,609$4,362 Net interest margin15.04%15.36%(1)(1)(2)(3)(4)(5)16 20242023Nine months ended September 30($in millions)AverageBalanceInterestIncome/Ex

140、penseAverageYield/RateAverageBalanceInterestIncome/ExpenseAverageYield/RateAssetsInterest-earning assets:Interest-earning cash and equivalents$17,685$720 5.44%$13,107$490 5.00%Securities available for sale2,915 99 4.54%4,138 92 2.97%Loan receivables,including held for sale:Credit cards93,757 15,345

141、21.86%87,914 14,179 21.56%Consumer installment loans5,644 630 14.91%3,375 285 11.29%Commercial credit products1,957 134 9.15%1,789 108 8.07%Other126 7 7.42%120 7 7.80%Total loan receivables,including held for sale101,484 16,116 21.21%93,198 14,579 20.91%Total interest-earning assets122,084 16,935 18

142、.53%110,443 15,161 18.35%Non-interest-earning assets:Cash and due from banks892 987 Allowance for credit losses(10,850)(9,552)Other assets7,303 6,331 Total non-interest-earning assets(2,655)(2,234)Total assets$119,429$108,209 LiabilitiesInterest-bearing liabilities:Interest-bearing deposit accounts$

143、82,481$2,889 4.68%$74,340$2,074 3.73%Borrowings of consolidated securitization entities7,686 323 5.61%6,062 241 5.32%Senior and subordinated unsecured notes8,238 304 4.93%8,621 313 4.85%Total interest-bearing liabilities98,405 3,516 4.77%89,023 2,628 3.95%Non-interest-bearing liabilities:Non-interes

144、t-bearing deposit accounts391 410 Other liabilities5,315 5,239 Total non-interest-bearing liabilities5,706 5,649 Total liabilities104,111 94,672 EquityTotal equity15,318 13,537 Total liabilities and equity$119,429$108,209 Interest rate spread13.76%14.41%Net interest income$13,419$12,533 Net interest

145、 margin14.68%15.17%_(1)Average yields/rates are based on annualized total interest income/expense divided by average balances.(2)Includes average restricted cash balances of$57 million and$151 million for the three months ended September 30,2024 and 2023,respectively,and$76 million and$324million fo

146、r the nine months ended September 30,2024 and 2023,respectively.(3)Interest income on loan receivables includes fees on loans,which primarily consist of late fees on our credit products,of$652 million and$694 million for the three monthsended September 30,2024 and 2023,respectively,and$1.9 billion a

147、nd$2.0 billion for the nine months ended September 30,2024 and 2023,respectively.(4)Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.(5)Net interest margin represents annualized net interest income di

148、vided by average total interest-earning assets.(1)(1)(2)(3)(4)(5)17For a summary description of the composition of our key line items included in our Statements of Earnings,see Managements Discussion and Analysis ofFinancial Condition and Results of Operations in our 2023 Form 10-K.Interest IncomeIn

149、terest income increased by$431 million,or 8.1%,and$1.8 billion,or 11.7%,for the three and nine months ended September 30,2024,respectively,primarilydriven by increases in interest and fees on loans of 7.2%and 10.5%,respectively.The increases in the three and nine months ended September 30,2024 inint

150、erest and fees on loans were primarily driven by growth in average loan receivables,the impact of our product,pricing and policy changes and lowercustomer payment rates,partially offset by higher reversals.Average interest-earning assetsThree months ended September 30($in millions)2024%2023%Loan rec

151、eivables,including held for sale$102,009 83.7%$96,230 85.4%Liquidity portfolio and other19,903 16.3%16,459 14.6%Total average interest-earning assets$121,912 100.0%$112,689 100.0%Nine months ended September 30($in millions)2024%2023%Loan receivables,including held for sale$101,484 83.1%$93,198 84.4%

152、Liquidity portfolio and other20,600 16.9%17,245 15.6%Total average interest-earning assets$122,084 100.0%$110,443 100.0%Average loan receivables,including held for sale,increased 6.0%and 8.9%for the three and nine months ended September 30,2024,respectively,primarilydriven by lower customer payment

153、rates and the impact of the Ally Lending acquisition,partially offset by lower purchase volume.Purchase volume decreasedby 4.3%and 1.2%for the three and nine months ended September 30,2024,respectively,reflecting lower consumer spend as well as the impact of creditactions,partially offset by the All

154、y Lending acquisition.The decrease for the nine months ended September 30,2024 was also partially offset by growth inaverage active accounts of 1.7%.Yield on average interest-earning assetsThe yield on average interest-earning assets increased for the three and nine months ended September 30,2024 pr

155、imarily due to increases in the yield onaverage loan receivables.The loan receivable yield increased 30 basis points for both the three and nine months ended September 30,2024 to 21.54%and21.21%,respectively.Interest ExpenseInterest expense increased by$184 million to$1.2 billion,and$888 million to$

156、3.5 billion,for the three and nine months ended September 30,2024,respectively,due to higher benchmark rates and higher interest-bearing liabilities.Our cost of funds increased to 4.78%and 4.77%for the three and ninemonths ended September 30,2024,respectively,compared to 4.34%and 3.95%for the three

157、and nine months ended September 30,2023,respectively.Average interest-bearing liabilitiesThree months ended September 30($in millions)2024%2023%Interest-bearing deposit accounts$82,100 83.9%$75,952 83.7%Borrowings of consolidated securitization entities7,817 8.0%6,096 6.7%Senior and subordinated uns

158、ecured notes7,968 8.1%8,710 9.6%Total average interest-bearing liabilities$97,885 100.0%$90,758 100.0%18Nine months ended September 30($in millions)2024%2023%Interest-bearing deposit accounts$82,481 83.8%$74,340 83.5%Borrowings of consolidated securitization entities7,686 7.8%6,062 6.8%Senior and su

159、bordinated unsecured notes8,238 8.4%8,621 9.7%Total average interest-bearing liabilities$98,405 100.0%$89,023 100.0%Net Interest IncomeNet interest income increased by$247 million,or 5.7%,and$886 million,or 7.1%,for the three and nine months ended September 30,2024,respectively,resulting from the ch

160、anges in interest income and interest expense discussed above.Retailer Share ArrangementsRetailer share arrangements decreased by$65 million,or 6.6%,and$295 million,or 10.6%,for the three and nine months ended September 30,2024,respectively,primarily due to higher net charge-offs.Provision for Credi

161、t LossesProvision for credit losses increased by$109 million,or 7.3%,and$1.0 billion,or 24.3%,for the three and nine months ended September 30,2024,respectively,primarily driven by higher net charge-offs,partially offset by lower reserve builds in the current year.The net charge-off rate for the thr

162、ee monthsended September 30,2024 increased by 146 basis points to 6.06%,as compared to the prior year period,and was 97 basis points above the average of thethird quarters of 2017 through 2019.The reserve build in the nine months ended September 30,2024 included$180 million related to the Ally Lendi

163、ngacquisition.Other IncomeThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Interchange revenue$256$267$760$761 Protection product revenue145 131 411 371 Loyalty programs(346)(358)(1,011)(1,001)Other64 52 1,233 87 Total other income$119$92$1,393$218 Other i

164、ncome increased by$27 million to$119 million,and$1.2 billion to$1.4 billion,for the three and nine months ended September 30,2024,respectively.The increase in other income for the three months ended September 30,2024 was primarily driven by the impact of our product,pricing and policy changerelated

165、fees across all five of our sales platforms.This impact was partially offset by lower commission fees following the Pets Best disposition in March 2024and venture investment losses in the three months ended September 30,2024 as compared to net investment gains recognized in the prior year period.The

166、 increase for the nine months ended September 30,2024 was primarily driven by the gain on sale related to the Pets Best disposition.The pre-tax gainamount of$1.1 billion is included within the Other component of Other Income in our Condensed Consolidated Statements of Earnings for the nine monthsend

167、ed September 30,2024.19Other ExpenseThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Employee costs$464$444$1,394$1,346 Professional fees231 219 687 614 Marketing and business development123 125 377 389 Information processing203 177 596 522 Other168 189 51

168、8 571 Total other expense$1,189$1,154$3,572$3,442 Other expense increased by$35 million,or 3.0%and by$130 million,or 3.8%,for the three and nine months ended September 30,2024,respectively.The increase in the three and nine months ended September 30,2024 were primarily driven by costs related to the

169、 Ally Lending acquisition,technologyinvestments,and preparatory expenses related to the late fee rule change,partially offset by lower operational losses.Technology investments primarilyreflect higher amortization of capitalized software expenditures.Provision for Income TaxesThree months ended Sept

170、ember 30,Nine months ended September 30,($in millions)2024202320242023Effective tax rate23.2%24.6%23.9%24.0%Provision for income taxes$239$205$855$567 The effective tax rate for the three months ended September 30,2024 decreased compared to the same period in the prior year primarily due to the reso

171、lutionof certain tax matters in the current period.The effective tax rate for the nine months ended September 30,2024 decreased slightly compared to the sameperiod in the prior year.For both periods presented,the effective tax rate differs from the applicable U.S.federal statutory tax rate primarily

172、 due to state incometaxes.20Platform AnalysisAs discussed above under“Our Sales Platforms,”we offer our credit products primarily through five sales platforms(Home&Auto,Digital,Diversified&Value,Health&Wellness and Lifestyle),which management measures based on their revenue-generating activities.The

173、 following is a discussion of certainsupplemental information for the three and nine months ended September 30,2024,for each of our five sales platforms and Corp,Other.Home&AutoThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Purchase volume$11,361$12,273$

174、34,369$35,989 Period-end loan receivables$32,542$31,648$32,542$31,648 Average loan receivables,including held for sale$32,613$31,239$32,358$30,386 Average active accounts(in thousands)19,157 19,223 19,136 18,894 Interest and fees on loans$1,489$1,367$4,290$3,867 Other income$56$28$127$80 Home&Auto i

175、nterest and fees on loans increased by$122 million,or 8.9%,and increased by$423 million,or 10.9%,for the three and nine months endedSeptember 30,2024,respectively,primarily driven by higher average loan receivables and higher benchmark rates.The increase in average loan receivablesfor both periods p

176、rimarily reflects the completion of the Ally Lending acquisition as well as the impact of lower customer payment rates,partially offset by lowerpurchase volume.Purchase volume decreased 7.4%and 4.5%for the three and nine months ended September 30,2024,as the impact of the Ally Lendingacquisition was

177、 more than offset by a combination of lower consumer traffic,fewer large ticket purchases and the impact of credit actions.Other income increased by$28 million,or 100.0%,and$47 million,or 58.8%,for the three and nine months ended September 30,2024,respectively.Theincreases for the three and nine mon

178、ths ended September 30,2024 were primarily due to the impact of product,pricing and policy change related fees,lowerloyalty costs and higher protection product revenue.DigitalThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Purchase volume$13,352$13,808$39

179、,383$39,541 Period-end loan receivables$27,771$26,685$27,771$26,685 Average loan receivables,including held for sale$27,704$26,266$27,776$25,484 Average active accounts(in thousands)20,787 20,768 21,033 20,641 Interest and fees on loans$1,593$1,530$4,704$4,315 Other income$4$(6)$10$(7)Digital intere

180、st and fees on loans increased by$63 million,or 4.1%,and$389 million,or 9.0%,for the three and nine months ended September 30,2024,respectively,primarily driven by higher average loan receivables,lower payment rates and higher benchmark rates.Purchase volume decreased by 3.3%and0.4%for the three and

181、 nine months ended September 30,2024,primarily driven by lower consumer spend per account and the impact of credit actions.Average active accounts remained flat and increased by 1.9%,for the three and nine months ended September 30,2024,respectively.21Diversified&ValueThree months ended September 30

182、,Nine months ended September 30,($in millions)2024202320242023Purchase volume$14,992$15,445$44,348$44,240 Period-end loan receivables$19,466$18,865$19,466$18,865 Average loan receivables,including held for sale$19,413$18,565$19,455$18,074 Average active accounts(in thousands)19,960 20,410 20,448 20,

183、571 Interest and fees on loans$1,209$1,168$3,588$3,329 Other income$(11)$(28)$(50)$(63)Diversified&Value interest and fees on loans increased by$41 million,or 3.5%,and$259 million,or 7.8%,for the three and nine months ended September 30,2024,respectively,primarily driven by growth in average loan re

184、ceivables,lower payment rates and higher benchmark rates.Purchase volume decreased by2.9%for the three months ended September 30,2024 primarily driven by lower consumer spend per account and the impact of credit actions.Purchase volumeremained flat for the nine months ended September 30,2024.Average

185、 active accounts decreased by 2.2%and 0.6%,for the three and nine months endedSeptember 30,2024,respectively.Health&WellnessThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Purchase volume$3,867$3,990$11,936$11,695 Period-end loan receivables$15,439$14,019

186、$15,439$14,019 Average loan receivables,including held for sale$15,311$13,600$15,041$12,927 Average active accounts(in thousands)7,801 7,276 7,713 7,076 Interest and fees on loans$956$844$2,736$2,365 Other income$68$74$182$189 Health&Wellness interest and fees on loans increased by$112 million,or 13

187、.3%,and$371 million,or 15.7%,for the three and nine months endedSeptember 30,2024,respectively,primarily driven by higher average loan receivables.The growth in average loan receivables for both periods reflected higherpurchase volume over the last 12 months and lower customer payment rates,as well

188、as the completion of the Ally Lending acquisition.Purchase volumedecreased 3.1%,and average active accounts increased 7.2%for the three months ended September 30,2024,as lower spend in Dental,Cosmetic andVision,combined with the impact of credit actions,was partially offset by growth in Pet and Audi

189、ology.Purchase volume increased 2.1%,and average activeaccounts increased 9.0%for the nine months ended September 30,2024,reflecting growth in Pet and Audiology,partially offset by lower spend in Vision andDental.Other income decreased by$6 million,or 8.1%,and$7 million,or 3.7%,for the three and nin

190、e months ended September 30,2024,respectively.The decreasesfor the three and nine months ended September 30,2024 were primarily due to lower commission fees following the Pets Best disposition,partially offset byhigher protection product revenue and the impact of product,pricing and policy change re

191、lated fees.22LifestyleThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Purchase volume$1,411$1,490$4,180$4,372 Period-end loan receivables$6,831$6,483$6,831$6,483 Average loan receivables,including held for sale$6,823$6,383$6,726$6,137 Average active accou

192、nts(in thousands)2,677 2,556 2,668 2,572 Interest and fees on loans$270$249$783$704 Other income$9$8$23$22 Lifestyle interest and fees on loans increased by$21 million,or 8.4%,and$79 million,or 11.2%,for the three and nine months ended September 30,2024,respectively,primarily driven by growth in ave

193、rage loan receivables and higher benchmark rates.The growth in average loan receivables for both periodsreflected lower customer payment rates.Purchase volume decreased by 5.3%and 4.4%for the three and nine months ended September 30,2024,respectively,reflecting lower transaction values and the impac

194、t of credit actions.Corp,OtherThree months ended September 30,Nine months ended September 30,($in millions)2024202320242023Purchase volume$2$2$2 Period-end loan receivables$144$173$144$173 Average loan receivables,including held for sale$145$177$128$190 Average active accounts(in thousands)42 75 54

195、88 Interest and fees on loans$5$(7)$15$(1)Other income$(7)$16$1,101$(3)Other income for the nine months ended September 30,2024 in Corp,Other primarily included the gain on sale related to the Pets Best disposition of$1.1billion.23Loan Receivables_Loan receivables are our largest category of assets

196、and represent our primary source of revenue.The following discussion provides supplemental informationregarding our loan receivables portfolio.See Note 2.Basis of Presentation and Summary of Significant Accounting Policies and Note 5.Loan Receivables andAllowance for Credit Losses to our condensed c

197、onsolidated financial statements for additional information related to our loan receivables.The following table sets forth the composition of our loan receivables portfolio by product type at the dates indicated.($in millions)At September 30,2024%At December 31,2023%Loan receivablesCredit cards$94,0

198、08 92.0%$97,043 94.2%Consumer installment loans6,125 6.0 3,977 3.9 Commercial credit products1,936 1.9 1,839 1.8 Other124 0.1 129 0.1 Total loan receivables$102,193 100.0%$102,988 100.0%Loan receivables decreased 0.8%to$102.2 billion at September 30,2024 compared to$103.0 billion at December 31,2023

199、,primarily driven by the seasonalityof our business and lower purchase volume,partially offset by the Ally Lending acquisition and lower customer payment rates.Loan receivables related to theAlly Lending acquisition are included within Consumer installment loans at September 30,2024 in the table abo

200、ve.Loan receivables increased 4.4%to$102.2 billion at September 30,2024 compared to$97.9 billion at September 30,2023 driven by lower customer paymentrates and the completion of the Ally Lending acquisition,partially offset by lower purchase volume.Our loan receivables portfolio had the following ge

201、ographic concentration at September 30,2024.($in millions)Loan ReceivablesOutstanding%of Total LoanReceivablesOutstandingStateTexas$11,273 11.0%California$10,513 10.3%Florida$9,521 9.3%New York$4,865 4.8%North Carolina$4,300 4.2%DelinquenciesOver-30 day loan delinquencies as a percentage of period-e

202、nd loan receivables increased to 4.78%at September 30,2024 from 4.40%at September 30,2023,and increased from 4.74%at December 31,2023.These increases were primarily driven by lower customer payment rates.Net Charge-OffsNet charge-offs consist of the unpaid principal balance of loans held for investm

203、ent that we determine are uncollectible,net of recovered amounts.We excludeaccrued and unpaid finance charges and fees and third-party fraud losses from charge-offs.Charged-off and recovered finance charges and fees are includedin interest and fees on loans while third-party fraud losses are include

204、d in other expense.Charge-offs are recorded as a reduction to the allowance for creditlosses and subsequent recoveries of previously charged-off amounts are credited to the allowance for credit losses.Costs incurred to recover charged-off loansare recorded as collection expense and included in Other

205、 expense in our Condensed Consolidated Statements of Earnings.24The table below sets forth the net charge-offs and ratio of annualized net charge-offs to average loan receivables,including held for sale,(“net charge-off rate”)for the periods indicated.Three months ended September 30,20242023($in mil

206、lions)AmountRateAmountRateCredit cards$1,429 6.06%$1,040 4.56%Consumer installment loans89 5.80%49 5.32%Commercial credit products35 6.99%26 5.54%Other%1 3.08%Total net charge-offs$1,553 6.06%$1,116 4.60%Nine months ended September 30,20242023($in millions)AmountRateAmountRateCredit cards$4,392 6.26

207、%$3,003 4.57%Consumer installment loans263 6.22%127 5.03%Commercial credit products103 7.03%87 6.50%Other1 1.06%1 1.10%Total net charge-offs$4,759 6.26%$3,218 4.62%Allowance for Credit LossesThe allowance for credit losses totaled$11.0 billion at September 30,2024,compared to$10.6 billion at Decembe

208、r 31,2023,respectively,and$10.2 billion atSeptember 30,2023,and reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statement ofFinancial Position.Our allowance for credit losses as a percentage of total period end loan receivables incre

209、ased to 10.79%at September 30,2024,from10.26%at December 31,2023 and increased from 10.40%at September 30,2023.The increase in allowance for credit losses compared to December 31,2023 and September 30,2023 includes the addition of the Ally Lending portfolio.SeeNote 5.Loan Receivables and Allowance f

210、or Credit Losses to our condensed consolidated financial statements for additional information.25Funding,Liquidity and Capital Resources_We maintain a strong focus on liquidity and capital.Our funding,liquidity and capital policies are designed to ensure that our business has the liquidity andcapita

211、l resources to support our daily operations,our business growth,our credit ratings and our regulatory and policy requirements,in a cost effective andprudent manner through expected and unexpected market environments.Funding SourcesOur primary funding sources include cash from operations,deposits(dir

212、ect and brokered deposits),securitized financings and senior and subordinatedunsecured notes.The following table summarizes information concerning our funding sources during the periods indicated:20242023Three months ended September 30($in millions)AverageBalance%AverageRateAverageBalance%AverageRat

213、eDeposits$82,100 83.9%4.7%$75,952 83.7%4.2%Securitized financings7,817 8.0 5.5%6,096 6.7 5.6%Senior and subordinated unsecured notes7,968 8.1 5.0%8,710 9.6 4.8%Total$97,885 100.0%4.8%$90,758 100.0%4.3%_(1)Excludes$387 million and$401 million average balance of non-interest-bearing deposits for the t

214、hree months ended September 30,2024 and 2023,respectively.Non-interest-bearing deposits comprise less than 10%of total deposits for the three months ended September 30,2024 and 2023.20242023Nine months ended September 30($in millions)AverageBalance%AverageRateAverageBalance%AverageRateDeposits$82,48

215、1 83.8%4.7%$74,340 83.5%3.7%Securitized financings7,686 7.8 5.6%6,062 6.8 5.3%Senior and subordinated unsecured notes8,238 8.4 4.9%8,621 9.7 4.9%Total$98,405 100.0%4.8%$89,023 100.0%3.9%_(1)Excludes$391 million and$410 million average balance of non-interest-bearing deposits for the nine months ende

216、d September 30,2024 and 2023,respectively.Non-interest-bearing deposits comprise less than 10%of total deposits for the nine months ended September 30,2024 and 2023.DepositsWe obtain deposits directly from retail,affinity relationships and commercial customers(“direct deposits”)or through third-part

217、y brokerage firms that offer ourdeposits to their customers(“brokered deposits”).At September 30,2024,we had$71.6 billion in direct deposits and$10.7 billion in deposits originated throughbrokerage firms(including network deposit sweeps procured through a program arranger that channels brokerage acc

218、ount deposits to us).A key part of ourliquidity plan and funding strategy is to continue to utilize our direct deposit base as a source of stable and diversified low-cost funding.Our direct deposits are primarily from retail customers and include a range of FDIC-insured deposit products,including ce

219、rtificates of deposit,IRAs,moneymarket accounts,savings accounts,sweep and affinity deposits.Brokered deposits are primarily from retail customers of large brokerage firms.We have relationships with 10 brokers that offer our deposits through theirnetworks.Our brokered deposits consist primarily of c

220、ertificates of deposit that bear interest at a fixed rate.These deposits generally are not subject to earlywithdrawal.(1)(1)26Our ability to attract deposits is sensitive to,among other things,the interest rates we pay,and therefore,we bear funding risk if we fail to pay higher rates,orinterest rate

221、 risk if we are required to pay higher rates,to retain existing deposits or attract new deposits.To mitigate these risks,our funding strategy includes arange of deposit products,and we seek to maintain access to multiple other funding sources,including securitized financings(including our undrawn co

222、mmittedand uncommitted capacity)and unsecured debt.The following table summarizes certain information regarding our interest-bearing deposits by type(all of which constitute U.S.deposits)for the periodsindicated:Three months ended September 30($in millions)20242023AverageBalance%AverageRateAverageBa

223、lance%AverageRateDirect deposits:Certificates of deposit(including IRA certificates of deposit)$40,454 49.3%4.9%$34,436 45.3%4.1%Savings,money market,and demand accounts30,281 36.9 4.5%28,746 37.9 4.4%Brokered deposits11,365 13.8 4.6%12,770 16.8 4.0%Total interest-bearing deposits$82,100 100.0%4.7%$

224、75,952 100.0%4.2%Nine months ended September 30($in millions)20242023AverageBalance%AverageRateAverageBalance%AverageRateDirect deposits:Certificates of deposit(including IRA certificates of deposit)$40,614 49.3%4.8%$32,115 43.2%3.5%Savings,money market,and demand accounts29,467 35.7 4.6%29,180 39.3

225、 3.9%Brokered deposits12,400 15.0 4.5%13,045 17.5 3.8%Total interest-bearing deposits$82,481 100.0%4.7%$74,340 100.0%3.7%Our deposit liabilities provide funding with maturities ranging from one day to ten years.At September 30,2024,the weighted average maturity of our interest-bearing time deposits

226、was one year.See Note 8.Deposits to our condensed consolidated financial statements for more information on the maturities of our timedeposits.The following table summarizes deposits by contractual maturity at September 30,2024:($in millions)3 Months orLessOver3 Monthsbut within6 MonthsOver6 Monthsb

227、ut within12 MonthsOver12 MonthsTotalU.S.deposits(less than FDIC insurance limit)$32,972$6,572$17,483$7,745$64,772 U.S.deposits(in excess of FDIC insurance limit)Direct deposits:Certificates of deposit(including IRA certificates of deposit)1,485 2,322 5,620 1,587 11,014 Savings,money market,and deman

228、d accounts6,498 6,498 Total$40,955$8,894$23,103$9,332$82,284 _(1)Includes brokered certificates of deposit for which underlying individual deposit balances are assumed to be less than$250,000.(2)The standard deposit insurance amount is$250,000 per depositor,for each account ownership category.Deposi

229、ts in excess of FDIC insurance limit presented above includepartially insured accounts.Our estimate of the uninsured portion of these deposit balances at September 30,2024 was approximately$6.0 billion.(1)(2)(2)27Securitized FinancingsWe access the asset-backed securitization market using the Synchr

230、ony Card Issuance Trust(“SYNIT”)through which we may issue asset-backed securitiesthrough both public transactions and private transactions funded by financial institutions and commercial paper conduits.In addition,we issue asset-backedsecurities in private transactions through the Synchrony Credit

231、Card Master Note Trust(“SYNCT”)and the Synchrony Sales Finance Master Trust(“SFT”).The following table summarizes expected contractual maturities of the investors interests in securitized financings,excluding debt premiums,discounts andissuance costs at September 30,2024.($in millions)Less ThanOne Y

232、earOne YearThroughThreeYearsFour YearsThroughFiveYearsAfter FiveYearsTotalScheduled maturities of long-term borrowingsowed tosecuritization investors:SYNCT$550$1,100$1,650 SFT450 1,000 1,450 SYNIT1,675 3,250 4,925 Total long-term borrowingsowed to securitizationinvestors$2,675$5,350$8,025 _(1)Exclud

233、es any subordinated classes of SYNIT notes that we owned at September 30,2024.We retain exposure to the performance of trust assets through:(i)in the case of SYNCT,SFT and SYNIT,subordinated retained interests in the loanreceivables transferred to the trust in excess of the principal amount of the n

234、otes for a given series that provide credit enhancement for a particular series,aswell as a pari passu sellers interest in each trust and(ii)in the case of SYNIT,any subordinated classes of notes that we own.All of our securitized financings include early repayment triggers,referred to as early amor

235、tization events,including events related to material breaches ofrepresentations,warranties or covenants,inability or failure of the Bank to transfer loan receivables to the trusts as required under the securitization documents,failure to make required payments or deposits pursuant to the securitizat

236、ion documents,and certain insolvency-related events with respect to the relatedsecuritization depositor,Synchrony(solely with respect to SYNCT)or the Bank.In addition,an early amortization event will occur with respect to a series if theexcess spread as it relates to a particular series or for the t

237、rust,as applicable,falls below zero.Following an early amortization event,principal collections onthe loan receivables in the applicable trust are applied to repay principal of the trusts asset-backed securities rather than being available on a revolving basis tofund the origination activities of ou

238、r business.The occurrence of an early amortization event also would limit or terminate our ability to issue future series out ofthe trust in which the early amortization event occurred.No early amortization event has occurred with respect to any of the securitized financings in SYNCT,SFT or SYNIT.(1

239、)28The following table summarizes for each of our trusts the three-month rolling average excess spread at September 30,2024.Note Principal Balance($in millions)#of SeriesOutstandingThree-Month RollingAverage ExcessSpreadSYNCT$1,650 3 14.8-15.6%SFT$1,450 5 12.5%SYNIT$4,925 1 17.2%_(1)Represents the e

240、xcess spread(generally calculated as interest income collected from the applicable pool of loan receivables less applicable net charge-offs,interestexpense and servicing costs,divided by the aggregate principal amount of loan receivables in the applicable pool)for SFT or,in the case of SYNCT,a range

241、 of the excessspreads relating to the particular series issued within such trust or,in the case of SYNIT,the excess spread relating to the one outstanding series issued within such trust,inall cases omitting any series that have not been outstanding for at least three full monthly periods and calcul

242、ated in accordance with the applicable trust or seriesdocumentation,for the three securitization monthly periods ended September 30,2024.Senior and Subordinated Unsecured NotesDuring the nine months ended September 30,2024,we made repayments totaling$1.85 billion of senior unsecured notes issued by

243、Synchrony Financial.The following table provides a summary of our outstanding fixed rate senior and subordinated unsecured notes at September 30,2024,which includes$750million of senior unsecured notes issued by Synchrony Financial in August 2024.Issuance DateInterest RateMaturityPrincipal AmountOut

244、standing($in millions)Fixed rate senior unsecured notes:Synchrony FinancialJuly 20154.500%July 20251,000 August 20163.700%August 2026500 December 20173.950%December 20271,000 March 20195.150%March 2029650 October 20212.875%October 2031750 June 20224.875%June 2025750 Synchrony BankAugust 20225.400%Au

245、gust 2025900 August 20225.625%August 2027600 Fixed to floating rate senior unsecured notes:Synchrony FinancialAugust 20245.935%August 2030750 Fixed rate subordinated unsecured notes:Synchrony FinancialFebruary 20237.250%February 2033750 Total fixed rate and fixed to floating rate senior andsubordina

246、ted unsecured notes$7,650 _(1)Weighted average interest rate of all senior and subordinated unsecured notes at September 30,2024 was 4.91%.(2)The amounts shown exclude unamortized debt discounts,premiums and issuance costs.(3)Interest rate fixed through August 1,2029;resets August 2,2029 to floating

247、 rate based on compounded Secured Overnight Financing Rate(SOFR)plus 213 basis points.(1)(1)(2)(3)29Short-Term BorrowingsExcept as described above,there were no material short-term borrowings for the periods presented.CovenantsThe indentures pursuant to which our senior and subordinated unsecured no

248、tes have been issued include various covenants.If we do not satisfy any of thesecovenants,the maturity of amounts outstanding thereunder may be accelerated and become payable.We were in compliance with all of these covenants atSeptember 30,2024.At September 30,2024,we were not in default under any o

249、f our credit facilities.Credit RatingsOur borrowing costs and capacity in certain funding markets,including securitizations and senior and subordinated debt,may be affected by the credit ratingsof the Company,the Bank and the ratings of our asset-backed securities.The table below reflects our curren

250、t credit ratings and outlooks:S&PFitch RatingsSynchrony FinancialSenior unsecured debtBBB-BBB-Subordinated unsecured debtBB+BB+Preferred stockBB-B+Outlook for Synchrony FinancialStablePositiveSynchrony BankSenior unsecured debtBBBBBB-Outlook for Synchrony BankStablePositiveIn addition,certain of the

251、 asset-backed securities issued by SYNIT are rated by Fitch,S&P and/or Moodys.A credit rating is not a recommendation to buy,sellor hold securities,may be subject to revision or withdrawal at any time by the assigning rating organization,and each rating should be evaluated independentlyof any other

252、rating.Downgrades in these credit ratings could materially increase the cost of our funding from,and restrict our access to,the capital markets.Liquidity_We seek to ensure that we have adequate liquidity to sustain business operations,fund asset growth,satisfy debt obligations and to meet regulatory

253、expectations under normal and stress conditions.We maintain policies outlining the overall framework and general principles for managing liquidity risk across our business,which is the responsibility of ourAsset and Liability Management Committee,a management committee under the oversight of the Ris

254、k Committee of our Board of Directors.We employ avariety of metrics to monitor and manage liquidity.We perform regular liquidity stress testing and contingency planning as part of our liquidity managementprocess.We evaluate a range of stress scenarios including Company specific and systemic events t

255、hat could impact funding sources and our ability to meetliquidity needs.We maintain a liquidity portfolio,which at September 30,2024 had$19.7 billion of liquid assets,primarily consisting of cash and equivalents,less cash in transitwhich is not considered to be liquid,compared to$16.8 billion of liq

256、uid assets at December 31,2023.The increase in liquid assets was primarily due to depositgrowth and the issuances of securitized debt and preferred stock,as well as the proceeds from the Pets Best disposition.We believe our liquidity position atSeptember 30,2024 remains strong as we continue to oper

257、ate in a period of uncertain economic conditions and we will continue to closely monitor our liquidityas economic conditions change.30As a general matter,investments included in our liquidity portfolio are expected to be highly liquid,giving us the ability to readily convert them to cash.The levelan

258、d composition of our liquidity portfolio may fluctuate based upon the level of expected maturities of our funding sources as well as operational requirementsand market conditions.We also have access to several additional sources of liquidity beyond our liquidity portfolio.At September 30,2024,we had

259、 an aggregate of$11.4 billion ofavailable borrowing capacity through the Federal Reserves discount window.In addition,we had$2.7 billion of undrawn capacity on our securitized financings,subject to customary borrowing conditions,from private lenders under our securitization programs,of which$2.2 bil

260、lion was committed and$450 million wasuncommitted,as well as$500 million of undrawn committed capacity under our unsecured revolving credit facility with private lenders.We also have otherunencumbered assets in the Bank available to be used to generate additional liquidity through secured borrowings

261、 or asset sales or to be pledged to theFederal Reserve Board for credit at the discount window.We rely significantly on dividends and other distributions and payments from the Bank for liquidity;however,bank regulations,contractual restrictions and otherfactors limit the amount of dividends and othe

262、r distributions and payments that the Bank may pay to us.For a discussion of regulatory restrictions on the Banksability to pay dividends,see“RegulationRisk Factors Relating to RegulationWe are subject to restrictions that limit our ability to pay dividends andrepurchase our common stock;the Bank is

263、 subject to restrictions that limit its ability to pay dividends to us,which could limit our ability to pay dividends,repurchase our common stock or make payments on our indebtedness”and“RegulationRegulation Relating to Our BusinessSavings AssociationRegulationDividends and Stock Repurchases”in our

264、2023 Form 10-K.Capital_Our primary sources of capital have been earnings generated by our business and existing equity capital.We seek to manage capital to a level andcomposition sufficient to support the risks of our business,meet regulatory requirements,adhere to rating agency targets and support

265、future business growth.The level,composition and utilization of capital are influenced by changes in the economic environment,strategic initiatives and legislative and regulatorydevelopments.Within these constraints,we are focused on deploying capital in a manner that will provide attractive returns

266、 to our stockholders.Beginning in 2024,we are now subject to the Federal Reserve Boards formal capital plan submission requirements and have submitted our capital plan to theFederal Reserve Board.Dividend and Share RepurchasesCommon Stock Cash Dividends DeclaredMonth of PaymentAmount per CommonShare

267、Amount($in millions,except per share data)Three months ended March 31,2024February 2024$0.25$102 Three months ended June 30,2024May 20240.25 100 Three months ended September 30,2024August 20240.25 99 Total dividends declared$0.75$301 Series A Preferred Stock Cash Dividends DeclaredMonth of PaymentAm

268、ount per PreferredShareAmount($in millions,except per share data)Three months ended March 31,2024February 2024$14.06$11 Three months ended June 30,2024May 202414.06 10 Three months ended September 30,2024August 202414.06 11 Total Series A dividends declared$42.18$32 31Series B Preferred Stock Cash D

269、ividends DeclaredMonth of PaymentAmount per PreferredShareAmount($in millions,except per share data)Three months ended June 30,2024May 2024$18.79$9 Three months ended September 30,2024August 202420.63 10 Total Series B dividends declared$39.42$19 In February 2024,we issued depositary shares represen

270、ting$500 million of Series B 8.250%fixed rate reset non-cumulative perpetual preferred stock,withdividends payable quarterly beginning in May 2024.The declaration and payment of future dividends to holders of our common and preferred stock will be atthe discretion of the Board and will depend on man

271、y factors.For a discussion of regulatory and other restrictions on our ability to pay dividends and repurchasestock,see“RegulationRisk Factors Relating to RegulationWe are subject to restrictions that limit our ability to pay dividends and repurchase our commonstock;the Bank is subject to restrictio

272、ns that limit its ability to pay dividends to us,which could limit our ability to pay dividends,repurchase our common stockor make payments on our indebtedness”in our 2023 Form 10-K.Common Shares Repurchased Under Publicly Announced ProgramsTotal Number of SharesPurchasedDollar Value of SharesPurcha

273、sed($and shares in millions)Three months ended March 31,20247.5$300 Three months ended June 30,20246.9 300 Three months ended September 30,20246.6 300 Total21.0$900 During the nine months ended September 30,2024,we repurchased$900 million of common stock as part of our 2023 share repurchase program.

274、In April2024,the Board of Directors approved an incremental share repurchase program of up to$1.0 billion through June 30,2025(the 2024 plan).AtSeptember 30,2024,$700 million of the authorization capacity under the 2024 plan remained outstanding.Repurchases under this program are subject tomarket co

275、nditions and other factors,including legal and regulatory restrictions and required approvals,if any.Regulatory Capital Requirements-Synchrony FinancialAs a savings and loan holding company,we are required to maintain minimum capital ratios,under the applicable U.S.Basel III capital rules.For morein

276、formation,see“RegulationSavings and Loan Holding Company Regulation”in our 2023 Form 10-K.For Synchrony Financial to be a well-capitalized savings and loan holding company,Synchrony Bank must be well-capitalized and Synchrony Financial mustnot be subject to any written agreement,order,capital direct

277、ive,or prompt corrective action directive issued by the Federal Reserve Board to meet and maintaina specific capital level for any capital measure.At September 30,2024,Synchrony Financial met all the requirements to be deemed well-capitalized.32The following table sets forth the composition of our c

278、apital ratios for the Company calculated under the Basel III Standardized Approach rules atSeptember 30,2024 and December 31,2023,respectively.Basel III At September 30,2024At December 31,2023($in millions)AmountRatioAmountRatioTotal risk-based capital$16,864 16.4%$15,464 14.9%Tier 1 risk-based capi

279、tal$14,723 14.3%$13,334 12.9%Tier 1 leverage$14,723 12.5%$13,334 11.7%Common equity Tier 1 capital$13,501 13.1%$12,600 12.2%Risk-weighted assets$103,103$103,460 _(1)Tier 1 leverage ratio represents total Tier 1 capital as a percentage of total average assets,after certain adjustments.All other ratio

280、s presented above represent theapplicable capital measure as a percentage of risk-weighted assets.The Company elected to adopt the option provided by the interim final rule issued by joint federal bank regulatory agencies,which largely delayed the effects ofCECL on our regulatory capital.Beginning i

281、n the first quarter of 2022,the effects are being phased-in over a three-year transitional period through 2024,collectively the“CECL regulatory capital transition adjustment”.The effects of CECL on our regulatory capital will be fully phased-in beginning in the first quarterof 2025.For more informat

282、ion,see“CapitalRegulatory Capital Requirements-Synchrony Financial”in our 2023 Form 10-K.Capital amounts and ratios in the above table all reflect the applicable CECL regulatory capital transition adjustment for each period.The increase in ourcommon equity Tier 1 capital ratio compared to December 3

283、1,2023 was primarily due to the retention of net earnings during the nine months endedSeptember 30,2024 and the net impact of the Pets Best disposition and Ally Lending acquisition,partially offset by the third year phase-in of the impact ofCECL on our regulatory capital.Regulatory Capital Requireme

284、nts-Synchrony BankAt September 30,2024 and December 31,2023,the Bank met all applicable requirements to be deemed well-capitalized pursuant to OCC regulations and forpurposes of the Federal Deposit Insurance Act.The following table sets forth the composition of the Banks capital ratios calculated un

285、der the Basel IIIStandardized Approach rules at September 30,2024 and December 31,2023,and also reflects the applicable CECL regulatory capital transition adjustment foreach period.At September 30,2024At December 31,2023Minimum to be Well-Capitalized under PromptCorrective Action Provisions($in mill

286、ions)AmountRatioAmountRatioRatioTotal risk-based capital$15,583 15.9%$14,943 15.3%10.0%Tier 1 risk-based capital$13,499 13.8%$12,880 13.2%8.0%Tier 1 leverage$13,499 12.1%$12,880 12.0%5.0%Common equity Tier 1 capital$13,499 13.8%$12,880 13.2%6.5%Failure to meet minimum capital requirements can result

287、 in the initiation of certain mandatory and possibly additional discretionary actions by regulators that,ifundertaken,could limit our business activities and have a material adverse effect on our business,results of operations and financial condition.See“RegulationRisk Factors Relating to Regulation

288、Failure by Synchrony and the Bank to meet applicable capital adequacy and liquidity requirements could have amaterial adverse effect on us”in our 2023 Form 10-K.(1)(1)33Off-Balance Sheet Arrangements and Unfunded Lending Commitments_We do not have any material off-balance sheet arrangements,includin

289、g guarantees of third-party obligations.Guarantees are contracts or indemnificationagreements that contingently require us to make a guaranteed payment or perform an obligation to a third-party based on certain trigger events.AtSeptember 30,2024,we had not recorded any contingent liabilities in our

290、Condensed Consolidated Statement of Financial Position related to any guarantees.See Note 6-Variable Interest Entities to our condensed consolidated financial statements for more information on our investment commitments forunconsolidated variable interest entities(“VIEs”).We extend credit,primarily

291、 arising from agreements with customers for unused lines of credit on our credit cards,in the ordinary course of business.Eachunused credit card line is unconditionally cancellable by us.See Note 5-Loan Receivables and Allowance for Credit Losses to our condensed consolidatedfinancial statements for

292、 more information on our unfunded lending commitments.Critical Accounting Estimates_In preparing our condensed consolidated financial statements,we have identified certain accounting estimates and assumptions that we consider to be themost critical to an understanding of our financial statements bec

293、ause they involve significant judgments and uncertainties.The critical accounting estimates wehave identified relate to allowance for credit losses and fair value measurements.These estimates reflect our best judgment about current,and for someestimates future,economic and market conditions and thei

294、r effects based on information available as of the date of these financial statements.If theseconditions change from those expected,it is reasonably possible that these judgments and estimates could change,which may result in incremental losses onloan receivables,or material changes to our Condensed

295、 Consolidated Statement of Financial Position,among other effects.See“Managements Discussionand AnalysisCritical Accounting Estimates”in our 2023 Form 10-K,for a detailed discussion of these critical accounting estimates.Regulation and Supervision_Our business,including our relationships with our cu

296、stomers,is subject to regulation,supervision and examination under U.S.federal,state and foreign lawsand regulations.These laws and regulations cover all aspects of our business,including lending and collection practices,treatment of our customers,safeguarding deposits,customer privacy and informati

297、on security,capital structure,liquidity,dividends and other capital distributions,transactions with affiliates,and conduct and qualifications of personnel.Such laws and regulations directly and indirectly affect key drivers of our profitability,including,for example,capitaland liquidity,product offe

298、rings,risk management,and costs of compliance.As a savings and loan holding company and a financial holding company,Synchrony is subject to regulation,supervision and examination by the FederalReserve Board.As a large provider of consumer financial services,we are also subject to regulation,supervis

299、ion and examination by the CFPB.The Bank is a federally chartered savings association.As such,the Bank is subject to regulation,supervision and examination by the OCC,which is its primaryregulator,and by the CFPB.In addition,the Bank,as an insured depository institution,is supervised by the FDIC.On

300、March 5,2024,the CFPB released a final rule amending its regulations that implement the Truth in Lending Act to,among other things,lower the safeharbor dollar amount for credit card late fees from the prior$30(adjusted to$41 for each subsequent late payment within the next six billing cycles)to$8 an

301、d toeliminate the automatic annual inflation adjustment to such safe harbor dollar amount.The final rule had an original effective date of May 14,2024.Industryorganizations have challenged the final rule in court,and on May 10,2024,the United States District Court for the Northern District of Texas

302、granted aninjunction and stay of the final rule,and the injunction granted remains in effect.The final outcome of such challenge,including the impact on the final rule,isuncertain.See Business Trends and Conditions above for the anticipated financial impacts related to the final rule.34On June 20,20

303、24,the FDIC released a final rule imposing additional requirements for the content of resolution plans submitted by insured depositoryinstitutions with$100 billion or more in total assets,including the Bank,following the rules effective date of October 1,2024.Under the final rule,if the FDICdeems a

304、resolution plan filing not credible and the insured depository institution fails to resubmit a credible plan,the institution could become subject to anenforcement action.Our first resolution plan under the final rule is due on July 1,2025 and we will be required to file a resolution plan once every

305、three yearsthereafter.Additionally,we will be required to submit interim supplements annually.We are evaluating the impact of the final rule.On July 30,2024,the FDIC issued a proposed rule that would revise the FDICs regulations governing the classification and treatment of brokered deposits.The pro

306、posal would,among other changes,broaden the definition of deposit broker to include agents that place or facilitate the placement of third-partydeposits at only one insured depository institution and agents that receive a fee or other remuneration in exchange for the placement of deposits.In additio

307、n,the proposal would narrow the exception to the definition of deposit broker for agents whose primary purpose is not the placement of funds with depositoryinstitutions.While we are evaluating the potential impact of the proposed rule,if the rule is finalized as proposed,the Bank may be required to

308、classify a greateramount of its deposits obtained with the involvement of third parties as brokered deposits.An increase in the amount of brokered deposits on the Banksbalance sheet could,among other consequences,increase the Banks deposit insurance assessment costs.On September 10,2024,the Vice Cha

309、ir for Supervision at the Federal Reserve Board(the Vice Chair),gave a speech outlining a set of potential revisions tothe July 2023 interagency proposed rule to revise the U.S.regulatory capital framework(known as the“Basel Endgame”proposal).In the speech,the ViceChair indicated that he will recomm

310、end that the Federal Reserve Board issue a re-proposal of the rule in which banking organizations with total assets between$100 billion and$250 billion,such as Synchrony,would not be subject to the changes to their capital requirements that were included in the July 2023 BaselEndgame proposal,other

311、than the proposed requirement to recognize unrealized gains and losses of their securities in regulatory capital.It remains uncertainwhether the federal banking agencies will re-propose the Basel Endgame rule,and if so,whether the agencies will adopt the Vice Chairs recommendations.On September 17,2

312、024,the OCC finalized a new Policy Statement Regarding Statutory Factors Under the Bank Merger Act(the“Policy Statement”),whichoutlines factors that the OCC will consider when evaluating a proposed bank merger transaction.Also on September 17,2024,the United States Department ofJustice(the“DOJ”)with

313、drew its 1995 Bank Merger Guidelines and announced that it will instead evaluate the competitive impact of bank mergers using its2023 Merger Guidelines that the DOJ applies to mergers in all industries.Compared to the 1995 Bank Merger Guidelines,the 2023 Merger Guidelines set forthmore stringent con

314、centration limits and add several largely qualitative bases on which the DOJ may challenge a merger.While the effect of these changes forparticular transactions remains unclear,both the Policy Statement and the change in the DOJs bank merger antitrust policy may make it more difficult and/orcostly f

315、or us to obtain regulatory approval for an acquisition or may otherwise result in more onerous conditions to obtain approval for an acquisition.See“RegulationRegulation Relating to Our Business”in our 2023 Form 10-K for additional information on regulations that apply to us,and“Capital”above,for dis

316、cussion of the impact of regulations and supervision on our capital and liquidity,including our ability to pay dividends and repurchase stock.35ITEM 1.FINANCIAL STATEMENTSSynchrony Financial and subsidiariesCondensed Consolidated Statements of Earnings(Unaudited)_Three months ended September 30,Nine

317、 months ended September 30,($in millions,except per share data)2024202320242023Interest income:Interest and fees on loans(Note 5)$5,522$5,151$16,116$14,579 Interest on cash and debt securities263 203 819 582 Total interest income5,785 5,354 16,935 15,161 Interest expense:Interest on deposits968 800

318、2,889 2,074 Interest on borrowings of consolidated securitization entities108 86 323 241 Interest on senior and subordinated unsecured notes100 106 304 313 Total interest expense1,176 992 3,516 2,628 Net interest income4,609 4,362 13,419 12,533 Retailer share arrangements(914)(979)(2,488)(2,783)Prov

319、ision for credit losses(Note 5)1,597 1,488 5,172 4,161 Net interest income,after retailer share arrangements and provision forcredit losses2,098 1,895 5,759 5,589 Other income:Interchange revenue256 267 760 761 Protection product revenue145 131 411 371 Loyalty programs(346)(358)(1,011)(1,001)Other(N

320、ote 3)64 52 1,233 87 Total other income119 92 1,393 218 Other expense:Employee costs464 444 1,394 1,346 Professional fees231 219 687 614 Marketing and business development123 125 377 389 Information processing203 177 596 522 Other168 189 518 571 Total other expense1,189 1,154 3,572 3,442 Earnings be

321、fore provision for income taxes1,028 833 3,580 2,365 Provision for income taxes(Note 14)239 205 855 567 Net earnings$789$628$2,725$1,798 Net earnings available to common stockholders$768$618$2,674$1,767 Earnings per share(Note 12)Basic$1.96$1.49$6.71$4.16 Diluted$1.94$1.48$6.65$4.14 See accompanying

322、 notes to condensed consolidated financial statements.36Synchrony Financial and subsidiariesCondensed Consolidated Statements of Comprehensive Income(Unaudited)_Three months ended September 30,Nine months ended September 30,($in millions)2024202320242023Net earnings$789$628$2,725$1,798 Other compreh

323、ensive income(loss)Debt securities21 3 20 31 Currency translation adjustments3(2)(1)(1)Employee benefit plans(1)(1)(1)(1)Other comprehensive income(loss)23 18 29 Comprehensive income$812$628$2,743$1,827 Amounts presented net of taxes.See accompanying notes to condensed consolidated financial stateme

324、nts.37Synchrony Financial and subsidiariesCondensed Consolidated Statements of Financial Position(Unaudited)_($in millions)At September 30,2024At December 31,2023AssetsCash and equivalents$17,934$14,259 Debt securities(Note 4)2,345 3,799 Loan receivables:(Notes 5 and 6)Unsecuritized loans held for i

325、nvestment81,005 81,554 Restricted loans of consolidated securitization entities21,188 21,434 Total loan receivables102,193 102,988 Less:Allowance for credit losses(11,029)(10,571)Loan receivables,net91,164 92,417 Goodwill(Note 7)1,274 1,018 Intangible assets,net(Note 7)765 815 Other assets5,747 4,91

326、5 Assets held for sale(Note 3)256 Total assets$119,229$117,479 Liabilities and EquityDeposits:(Note 8)Interest-bearing deposit accounts$81,901$80,789 Non-interest-bearing deposit accounts383 364 Total deposits82,284 81,153 Borrowings:(Notes 6 and 9)Borrowings of consolidated securitization entities8

327、,015 7,267 Senior and subordinated unsecured notes7,617 8,715 Total borrowings15,632 15,982 Accrued expenses and other liabilities5,333 6,334 Liabilities held for sale(Note 3)107 Total liabilities$103,249$103,576 Equity:Preferred stock,par share value$0.001 per share;1,250,000 and 750,000 shares aut

328、horized atSeptember 30,2024 and December 31,2023,respectively;1,250,000 and 750,000 shares issued andoutstanding at September 30,2024 and December 31,2023,respectively,and aggregate liquidationpreference of$1,250 at September 30,2024 and$750 at December 31,2023$1,222$734 Common Stock,par share value

329、$0.001 per share;4,000,000,000 shares authorized;833,984,684shares issued at both September 30,2024 and December 31,2023;389,224,881 and 406,875,775shares outstanding at September 30,2024 and December 31,2023,respectively1 1 Additional paid-in capital9,822 9,775 Retained earnings20,975 18,662 Accumu

330、lated other comprehensive income(loss):Debt securities(13)(33)Currency translation adjustments(39)(38)Employee benefit plans2 3 Treasury stock,at cost;444,759,803 and 427,108,909 shares at September 30,2024 and December 31,2023,respectively(15,990)(15,201)Total equity15,980 13,903 Total liabilities

331、and equity$119,229$117,479 See accompanying notes to condensed consolidated financial statements.38Synchrony Financial and subsidiariesCondensed Consolidated Statements of Changes in Equity(Unaudited)_Preferred StockCommon Stock($in millions,shares in thousands)SharesIssuedAmountSharesIssuedAmountAd

332、ditionalPaid-in CapitalRetainedEarningsAccumulated OtherComprehensiveIncome(Loss)TreasuryStockTotal EquityBalance atJanuary 1,2023750$734 833,985$1$9,718$16,716$(125)$(14,171)$12,873 Cumulative effect of change inaccounting principle 222 222 Adjusted balance,beginning ofperiod750$734 833,985$1$9,718

333、$16,938$(125)$(14,171)$13,095 Net earnings 601 601 Other comprehensive income 23 23 Purchases of treasury stock (404)(404)Stock-based compensation (13)(59)61(11)Dividends-Series A preferredstock($14.06 per share)(11)(11)Dividends-common stock($0.23 per share)(100)(100)Balance atMarch 31,2023750$734 833,985$1$9,705$17,369$(102)$(14,514)$13,193 Net earnings 569 569 Other comprehensive income 6 6 Pur