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Synchrony Financial Q3 Profit Declines; Net Interest Income Down 21% - Quick Facts

Synchrony Financial (SYF) reported third quarter net earnings per share of $0.52 including a restructuring charge resulting in an EPS reduction of $0.11, and an increase in the provision for credit losses resulting in an EPS reduction of $0.09. This is compared to earnings per share of $1.60, previous year. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.70, for the quarter. Analysts' estimates typically exclude special items.

Third quarter net interest income decreased 21%, to $3.5 billion, mainly due to the impact of COVID-19 and the Walmart consumer portfolio sale. Other income increased 54%, to $131 million. Analysts expected revenue of $3.49 billion, for the quarter.

Third quarter provision for credit losses increased 19%, to $1.2 billion, mainly driven by the reserve increase for the projected impact of COVID-19 related losses and the prior year reserve reduction related to Walmart, partially offset by lower net charge-offs.

Deposits decreased $2.5 billion, or 4%, to $63.5 billion. The company has total liquidity of $26.8 billion.

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