Net interest income growth has slowed to 1.9% with NIM stable at 3.9% in 2026Q3, while negative non-interest income of -$991M and flat total revenue near $4.8B suggest earnings improvement is driven primarily by the 24% provision decline rather than top-line expansion.
Synchrony Financial (SYF) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Net Interest Income | 18.81B | 18.47B | 18.01B | 17B | 15.63B | 14.24B | 14.4B | 16.8B | 16.12B | 15.02B | 13.53B | 12.09B | 11.32B | 10.57B | 9.56B |
| NII Growth % | 11.32% | 2.53% | 5.95% | 8.79% | 9.73% | -1.13% | -14.27% | 4.23% | 7.34% | 10.98% | 11.88% | 6.83% | 7.09% | 10.53% | - |
| Net Interest Margin % | 15.36% | 15.51% | 15.08% | 14.47% | 14.94% | 14.87% | 15.01% | 16.03% | 15.09% | 15.67% | 15% | 14.4% | 14.95% | 17.89% | 17.89% |
| Interest Income | 22.71B | 22.6B | 22.64B | 20.71B | 17.15B | 15.27B | 16.07B | 19.09B | 17.99B | 16.41B | 14.78B | 13.23B | 12.24B | 11.31B | 10.31B |
| Interest Expense | 3.9B | 4.13B | 4.63B | 3.71B | 1.52B | 1.03B | 1.67B | 2.29B | 1.87B | 1.39B | 1.25B | 1.14B | 922M | 742M | 745M |
| Loan Loss Provision | 5.24B | 5.22B | 6.73B | 5.96B | 3.38B | 726M | 5.31B | 4.18B | 5.54B | 5.3B | 3.99B | 2.95B | 2.92B | 3.07B | 2.56B |
| Non-Interest Income | -3.79B | -3.48B | -1.89B | -3.37B | -3.95B | -4.05B | -3.24B | -3.49B | -2.83B | -2.65B | -2.56B | -2.35B | -2.09B | -1.87B | -1.5B |
| Non-Interest Income % | -25.19% | -23.26% | -11.7% | -24.74% | -33.84% | -39.71% | -29.03% | -26.19% | -21.33% | -21.42% | -23.31% | -24.07% | -22.64% | -21.53% | -18.6% |
| Total Net Revenue | 15.03B | 14.98B | 16.13B | 13.63B | 11.67B | 10.19B | 11.16B | 13.31B | 13.28B | 12.37B | 10.97B | 9.75B | 9.23B | 8.7B | 8.06B |
| Revenue Growth % | 0.25% | -7.09% | 18.33% | 16.73% | 14.54% | -8.69% | -16.15% | 0.21% | 7.41% | 12.71% | 12.57% | 5.6% | 6.12% | 7.86% | - |
| Non-Interest Expense | 5.42B | 5.13B | 4.84B | 4.76B | 4.34B | 3.96B | 4.05B | 4.25B | 4.09B | 3.75B | 3.42B | 3.26B | 2.93B | 2.48B | 2.12B |
| Efficiency Ratio | 36.05% | 34.28% | 30.01% | 34.92% | 37.15% | 38.88% | 36.33% | 31.89% | 30.83% | 30.3% | 31.13% | 33.49% | 31.71% | 28.56% | 26.33% |
| Operating Income | 4.37B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Operating Margin % | 29.05% | 30.85% | 28.24% | 21.31% | 33.94% | 53.99% | 16.1% | 36.71% | 27.43% | 26.88% | 32.54% | 36.23% | 36.68% | 36.12% | 41.87% |
| Operating Income Growth % | - | 1.49% | 56.78% | -26.7% | -28% | 206.23% | -63.23% | 34.11% | 9.63% | -6.89% | 1.1% | 4.28% | 7.77% | -6.93% | - |
| Pretax Income | 4.37B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Pretax Margin % | 29.05% | 30.85% | 28.24% | 21.31% | 33.94% | 53.99% | 16.1% | 36.71% | 27.43% | 26.88% | 32.54% | 36.23% | 36.68% | 36.12% | 41.87% |
| Income Tax | 1.03B | 1.07B | 1.05B | 666M | 946M | 1.28B | 412M | 1.14B | 854M | 1.39B | 1.32B | 1.32B | 1.28B | 1.16B | 1.26B |
| Effective Tax Rate % | 23.66% | 23.13% | 23.15% | 22.93% | 23.88% | 23.3% | 22.93% | 23.33% | 23.44% | 41.79% | 36.95% | 37.3% | 37.71% | 37.01% | 37.23% |
| Net Income | 3.33B | 3.55B | 3.5B | 2.24B | 3.02B | 4.22B | 1.39B | 3.75B | 2.79B | 1.94B | 2.25B | 2.21B | 2.11B | 1.98B | 2.12B |
| Net Margin % | 22.18% | 23.71% | 21.7% | 16.42% | 25.84% | 41.41% | 12.41% | 28.15% | 21% | 15.65% | 20.52% | 22.71% | 22.85% | 22.75% | 26.28% |
| Net Income Growth % | -6.77% | 1.51% | 56.34% | -25.8% | -28.55% | 204.77% | -63.04% | 34.3% | 44.19% | -14.04% | 1.67% | 4.98% | 6.57% | -6.61% | - |
| Net Income (Continuing) | 3.33B | 3.55B | 3.5B | 2.24B | 3.02B | 4.22B | 1.39B | 3.75B | 2.79B | 1.94B | 2.25B | 2.21B | 2.11B | 1.98B | 2.12B |
| EPS (Diluted) | 10.34 | 9.29 | 8.55 | 5.19 | 6.15 | 7.34 | 2.27 | 5.56 | 3.74 | 2.42 | 2.71 | 2.65 | 2.78 | 2.38 | 2.55 |
| EPS Growth % | 4.59% | 8.65% | 64.74% | -15.61% | -16.21% | 223.35% | -59.17% | 48.66% | 54.55% | -10.7% | 2.26% | -4.68% | 16.81% | -6.67% | - |
| EPS (Basic) | - | 9.35 | 8.64 | 5.21 | 6.19 | 7.40 | 2.28 | 5.59 | 3.76 | 2.43 | 2.71 | 2.66 | 2.78 | 2.38 | 2.55 |
| Diluted Shares Outstanding | 322.4M | 357.84M | 400.6M | 423.5M | 483.4M | 569.3M | 590.8M | 673.5M | 746.9M | 799.7M | 831.5M | 835.5M | 757.6M | 831.17M | 831.17M |
Quick answers to the most common questions about buying SYF stock.
For fiscal year 2025, Synchrony Financial (SYF) reported total revenue of $14.98B. This represents a 85.8% increase compared to $8.06B in 2012.
Synchrony Financial (SYF) is profitable, generating $3.55B in net income for the fiscal year ending 2025 with a net profit margin of 23.7%.
Synchrony Financial (SYF) reported an operating income of $4.62B, resulting in an operating profit margin of 30.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Synchrony Financial (SYF) generated $9.76B in gross profit for the year, representing a gross profit margin of 65.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory compression of fee income streams
Metrics are mathematically derived from official filings.
Net Interest Income Deceleration Visible
According to reported financials, SYF's NII growth has steadily decelerated from 6.9% in 2024Q2 to just 1.9% by 2026Q3, indicating the tailwind from the rate cycle is largely exhausted and loan growth is not offsetting margin pressure.
The sequential decline in NII growth from high single digits to under 2% suggests the company is approaching a plateau in net interest income, likely driven by slower purchase volume growth and tightening underwriting standards. This deceleration is particularly concerning because NII represents the dominant revenue line for SYF, and without a reacceleration in loan growth or a favorable rate move, the topline may face continued compression. Investors should monitor whether the stricter underwriting posture adopted in recent periods is contributing to slower receivable growth, potentially trading near-term revenue for longer-term credit quality.
Net Interest Margin Stable Amid Funding Pressures
Based on recent SEC filings, SYF's NIM has held in a narrow 3.7%-4.0% range over ten quarters, with the most recent reading at 3.9% in 2026Q3, suggesting asset yields and funding costs are moving in relative lockstep rather than generating meaningful spread expansion.
The stability in NIM despite a volatile rate environment implies SYF's high-yield private-label card portfolio continues to generate sufficient spread, though the absence of upward drift may signal that deposit beta is rising as the digital bank competes for funding. The efficiency ratio ticking up from 31.2% in 2024Q3 to 35.9% in 2026Q3 warrants attention, as it suggests operating expenses are growing faster than revenue, partially offsetting the stable NIM. If the CFPB late fee rule is finalized as proposed, the yield on the total receivables portfolio could compress structurally, making the current NIM level harder to sustain.
Provisioning Decline Signals Credit Improvement
As reported in SYF's financial statements, the provision for credit losses has declined from $1.7B in 2024Q2 to $1.3B in 2026Q3, a roughly 24% reduction that appears to reflect improving charge-off trends and a more normalized credit environment relative to the elevated reserve-building phase.
The downward trajectory in provisioning has been a meaningful tailwind to operating income, which improved from $844M in 2024Q2 to $1.2B in 2026Q3 despite relatively flat revenue. This suggests credit normalization is running ahead of management's earlier expectations, though the CECL methodology means that a deterioration in forward-looking loss estimates could quickly reverse this trend. The Retailer Share Arrangement structure provides a partial hedge, as SYF's share payments decline when credit losses rise, but the net earnings impact of a sharp credit turn should not be underestimated given the company's pure-play US consumer concentration.
Negative Non-Interest Income Reflects RSA Cost
According to recent financial reports, SYF's non-interest income has been consistently negative, ranging from -$693M to -$991M per quarter, reflecting the Retailer Share Arrangement payments that are netted against revenue and increasingly consumed a larger share of gross lending economics over the period.
The deepening of negative non-interest income from -18.7% of revenue in 2024Q2 to -26.0% in 2026Q3 indicates that partner share arrangements are absorbing a growing share of SYF's earnings, either through higher contractual payouts or revenue mix shifts toward segments with more aggressive partner economics. This is a structural cost that limits operating leverage, and investors should monitor whether this trend reflects deliberate partnership retention investments or signals diminishing bargaining power versus large retail partners. The CFPB late fee rule represents an additional risk to this fee architecture, as it could reduce the gross revenue pool from which RSA payments are derived.
Earnings Quality Hinges on Provision Reversal
The strongest challenge to SYF's earnings quality is that operating income improvement from $844M to $1.2B has been driven primarily by declining provisions rather than revenue growth, which stalled at 1.9% NII growth, creating a fragile earnings bridge that may reverse if credit metrics deteriorate.
A closer look at the operating income bridge shows that net interest income added only approximately $400M over the period while provisions fell by roughly $400M, suggesting the earnings improvement is essentially a credit cycle benefit rather than a structural growth narrative. The efficiency ratio deterioration from 31.2% to 35.9% over the same window further erodes the quality of this improvement, indicating that even stable NIM is not translating into operating leverage. If the US consumer credit cycle turns or the late fee rule compresses the revenue base, SYF could face simultaneous pressure on both the revenue and provision lines, a scenario the current earnings trajectory does not appear to contemplate.