J. Michael Jones
Synchrony Financial (NYSE:SIF) Q4 earnings fell from the previous quarter and a year ago as the investment firm tightened its bad debt provisions, reflecting the continued improvement in credit quality and expectations. of the a slow economy. SYF shares up 2.8% on Monday pre-market trading.
However, the company’s results were better than expected as its total sales rose from the previous quarter and the year. has a past and growing credit history. “We closed the year with record sales and double-digit revenue growth, while also strengthening our cash flow, improving leverage and strong returns from our shareholders,” he said. said General Manager Brian Doubles.
Q4 net sales $47.9B vs. $44.6B in Q3 2022 and from $47.1B in Q4 2021.
Q4 EPS of $1.26, beating the $1.12 consensus, down from $1.47 in Q3 and from $1.48 in Q4 2021. Q4 revenue at $577M down from $703M in the first quarter and up from $813M last year.
Q4 bad debt provision of $1.20B vs. $929M in Q3 and $561M in Q4 2021.
Liquidity payments, as a percentage of average loan-to-value including foreclosures, increased to 3.48% from 3.00% in the first quarter and 2.37% in the year-over-year quarter. ago. In the last 30+ days, it increased by 3.65% vs. 3.28% in Q3 and from 2.62% in Q4 2021.
Synchrony Financial’s Q4 interest income rose to $4.11B from $3.93B in the first quarter and from $3.83B a year ago. Gross interest rate is 15.58% vs. 15.52% in Q3 and 15.77% in Q4 2021.
Loans were $92.5B on December 31, 2022, up from $86.0B on September 30.
Q3 total spending $1.15B vs. $1.06B in Q3 and $1.12B in Q4 2021.
First, Synchrony Financial (SIF) non-GAAP EPS of $1.26 down $0.13, revenue of $4.14B fell to $1.09B.