Synchrony Financial (SYF)

Synchrony Financial provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. It also offers savings products insured by the Federal Deposit Insurance Corporation through its subsidiary, Synchrony Bank. The company earns revenue largely from interest and late fees on credit card and other loans.

Its offerings consist primarily of private label, Dual Card, co-brand and general purpose credit cards, along with short- and long-term installment loans and savings products. Loan receivables primarily consist of open-end consumer revolving credit card accounts, closed-end consumer installment loans and open-end commercial revolving credit card accounts. The company conducts its operations through a single business segment, which is also a single reporting unit for goodwill purposes.

The company's financing programs serve retail and merchant partners and the consumers who use the credit products at those partners. It primarily conducts business within the United States, and substantially all of its revenues come from U.S. customers. Some operating activities are conducted by non-U.S. affiliates that use local currency as their functional currency.

Operationally, Synchrony funds and services its loans in part through consolidated securitization entities, which are variable interest entities where Synchrony or the Bank acts as servicer. It manages credit risk through a statistical, account-level expected loss model, loan modification programs for borrowers experiencing financial difficulty, and defined charge-off and delinquency practices. Other assets include contract costs tied to retail partner agreements and equity method investments, primarily its equity interest in Independence Pet Holdings, Inc., which totaled $834 million at December 31, 2025. Cash and equivalents at that date included $14.2 billion of interest-bearing deposits in other banks.