Synchrony Financial Inc.

09/15/2021 | Press release | Distributed by Public on 09/15/2021 04:32

Monthly Charge-off and Delinquency Statistics as of and for each of the thirteen months ended August 31, 2021 (Form 8-K)

SYNCHRONY FINANCIAL
MONTHLY CHARGE-OFF AND DELINQUENCY STATISTICS
AS OF AND FOR EACH OF THE THIRTEEN MONTHS ENDED
(unaudited, $ in billions)
The following table provides monthly charge-off and delinquency statistics as of and for each of the thirteen months ended August 31, 2021.
The decrease in the over-30 day loan delinquencies as a percentage of period-end loan receivables (the '30+ delinquency rate') at August 31, 2021 when compared to the prior year period reflects the impact of improvements in customer payment behavior, partially offset by the effects of the reclassification of loan receivables related to the Gap Inc. portfolio to loan receivables held for sale. The decrease in net charge-offs for the month ended August 31, 2021 compared to the prior year period also reflects the impact of improvements in customer payment behavior.
Aug 31,
2021
Jul 31,
2021
Jun 30,
2021
May 31,
2021
Apr 30,
2021
Mar 31,
2021
Feb 28,
2021
Jan 31,
2021
Dec 31,
2020
Nov 30,
2020
Oct 31,
2020
Sep 30,
2020
Aug 31,
2020
Period-end loan receivables $ 75.8 $ 78.8 $ 78.4 $ 77.7 $ 76.5 $ 76.9 $ 77.9 $ 79.2 $ 81.9 $ 80.3 $ 78.8 $ 78.5 $ 78.4
Loan receivables held for sale $ 3.6 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Average loan receivables, including held for sale $ 78.6 $ 78.3 $ 77.6 $ 76.6 $ 76.3 $ 76.9 $ 78.4 $ 79.8 $ 81.2 $ 78.9 $ 78.2 $ 78.1 $ 77.9
30+ days past due as a % of period-end loan receivables 2.3 % 2.1 % 2.1 % 2.2 % 2.4 % 2.8 % 3.1 % 3.2 % 3.1 % 3.0 % 2.8 % 2.7 % 2.6 %
Net charge-offs (annualized) as a % of average loan receivables, including held for sale(1)
2.5 % 2.2 % 3.2 % 3.7 % 3.8 % 3.8 % 4.1 % 3.0 % 3.1 % 3.2 % 3.2 % 4.2 % 4.3 %
Recovery adjustment(2)
(0.1) % - % 0.1 % - % (0.1) % - % (0.1) % 0.1 % - % (0.1) % 0.1 % (0.1) % - %
Adjusted net charge-offs as a % of average loan receivables, including held for sale(3)
2.4 % 2.2 % 3.3 % 3.7 % 3.7 % 3.8 % 4.0 % 3.1 % 3.1 % 3.1 % 3.3 % 4.1 % 4.3 %
(1) Charge-offs are executed on charge-off cycle dates which occur on various days during each calendar month. The number of different charge-off cycle dates in each month varies based on such factors as the calendar and the timing of billing cycles. As a result, the amount of charged-off loan receivables can vary between monthly periods with no corresponding change in the performance of the portfolio. The following table sets forth the number of different charge-off cycle dates for our consumer credit card loan receivables, which represent approximately 95% of total period end loan receivables at August 31, 2021, for the calendar months indicated.
2020 2021
January 28 28
February 26 28
March 30 29
April 28 27
May 28 28
June 28 29
July 28 25
August 28 30
September 29 28
October 25 28
November 30 28
December 28 28
(2) Represents adjustment to allocate recoveries, including debt sales, evenly across the three calendar months of each respective quarterly reporting period. The adjustments for periods other than for the last month of each calendar quarter incorporate estimated recoveries for the applicable full quarterly reporting period. Such estimates are subject to change within each applicable quarter and may differ from actual quarterly results.
(3) Adjusted net charge-offs represent a non-GAAP financial measure. Adjusted net charge-offs as a % of average loan receivables, including held for sale, represent the Company's net charge-off rate for each month including the 'recovery adjustment' defined above. We believe the presentation of this measure is useful to investors as it represents a monthly measure which is more indicative of both our quarterly and annual net charge-off rates.
1