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Synchrony Financial CEO Touts Resilience, But Lowered Outlook Spooks Investors

Synchrony Financial (NYSE:SYF) announced its second-quarter fiscal 2025 results on Tuesday, reporting mixed financial performance. While the company exceeded analyst expectations for both total revenue and earnings per share, key operational metrics saw a decline.

Synchrony’s total revenue or net interest income for the second quarter increased by 2.6% year-over-year to $4.52 billion, surpassing the consensus analyst estimate of $4.51 billion.

Despite this growth in total revenue, net revenue decreased by 1.8% year-over-year to $3.65 billion. The company’s net interest margin, a key indicator of profitability in lending, improved by 32 basis points to 14.78% during the quarter.

Also Read: Synchrony Teams Up With OnePay And Walmart To Launch New Credit Card Program, Promising Better Deals And More Financial Flexibility

However, several other financial indicators showed contraction. Period-end loan receivables declined 2% year-over-year to $99.8 billion, and purchase volume also decreased by 2% year-over-year, reaching $46.1 billion.

The average number of active accounts declined by 4% year-over-year to 68.1 million, and deposits fell by 1.0% year-over-year to $82.3 billion.

Despite these declines, interest and fees on loans saw a 1% year-over-year increase, ...