Synchrony Financial had a strong first quarter in 2023, reporting net income of $601 million, or $1.35 per diluted share. This was an increase from the first quarter of 2022, which saw net income of $499 million, or $0.61 per diluted share.
The company’s strong earnings were fueled by higher interest income, which rose 11% year-over-year to reach $3.5 billion. This increase was driven by factors like higher loan balances and a wider net interest margin.
Synchrony’s credit quality remained solid, with a delinquency rate of 1.7% in the first quarter, matching the fourth quarter of 2022.
Overall, Synchrony’s robust performance in the first quarter highlights the company’s financial strength. It is well-positioned for future growth, and its strong credit quality instills confidence in investors amid potential economic challenges.
The first quarter earnings report also revealed several key highlights for Synchrony:
- Purchase volume saw a 10% year-over-year increase, reaching $40 billion.
- Average active accounts grew by 6% year-over-year to a total of 56 million.
- Net interest margin experienced a 34 basis points rise, reaching 16.18%.
- Return on average assets stood at 2.3%.
- Return on equity reached 23.2%.
With approximately 16,000 employees, Synchrony Financial continues to establish its presence in the financial industry.
