Synchrony Financial 4Q Profits Fall as Credit Ratings Rise

By Will Feuer

Synchrony Financial’s earnings fell in the fourth quarter, as the company posted more than twice as much debt income than the same period last year.

The Stamford, Conn.-based company. reported fourth-quarter revenue of $577 million, down from $813 million in the same period a year earlier.

Earnings per share were $1.26, compared to $1.48 per share a year earlier. Analysts polled by FactSet had expected earnings of $1.12 per share.

Interest income rose 7% to $4.11 billion, mainly due to higher interest and loan fees, the company said. Average operating dollars fell 1% from the prior year to 68.4 million.

Synchrony’s provision for bad debts was $1.2 billion in the quarter, up from $561 million a year ago.

“As expected, credit performance in our portfolio continued to evolve as consumers worked through more savings and payment behavior toward pre-pandemic levels,” the statement said. said Chief Financial Officer Brian Wenzel.

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