Synchrony Financial announced its second-quarter 2025 results on July 22, 2025, reporting net earnings of $967 million, or $2.50 per diluted share. This represents a significant increase compared to $643 million, or $1.55 per diluted share, in the second quarter of 2024.
The primary driver of the net earnings increase was a substantial decrease in the provision for credit losses, which fell by $545 million, or 32.2% year-over-year. This was largely due to reserve releases of $265 million and lower net charge-offs, with the net charge-off rate decreasing to 5.7% from 6.42% in Q2 2024, now within the company's long-term target of 5.5% to 6%.
Net interest income increased 2.6% to $4.5 billion, driven by a higher loan receivables yield. However, loan receivables saw a 2.5% decrease to $99.8 billion. The company also declared a quarterly cash dividend of $0.30 per share of common stock, consistent with the previous quarter.
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