April Credit Data Mostly In Line, but Loan Growth Positive

Research evidence excerpt

April Credit Data Mostly In Line, but Loan Growth Positive

Flash Note Financials | Specialty Finance

May 15, 2026

Synchrony Financial John Pancari Girard Sweeney 212 497 0861 646 551 8503

SYF | $71.26 john.pancari@evercoreisi.com girard.sweeney@evercoreisi.com

Outperform | Target Price/Base Case: $90.00 Russ Anderson

Commentary 212-497-0887

Russ.Anderson@evercoreisi.com

SYF's April credit update essentially in line, but pace of improvement slowing; loan growth positive. NCOs continue to

improve, while the pace of improvement slows – NCOs declined 48 bps YoY in April vs -80 bps in March, marking the second

consecutive month of decelerating YoY improvement. 30+ day DQs were flat YoY in April, in line with March and Feb. Loan balances

came in notably above our forecast, with implied 2Q26 EOP growth of +3.2% YoY vs. our +1.7% est. Broader normalization of

credit trends across the cards continues, and we expect today's data to be largely supportive of investor expectations.

Implied 2Q26 DQs screen very modestly above EVR, but in line with Street. SYF's Apr 30+ day DQs totaled ~$4.3B or 4.3%,

flat YoY and -20 bps MoM. Assuming historical seasonal trends, this implies 30+ day DQs of 4.30% for 2Q26, which screens

modestly above EVR and in line with consensus (+6 bps/+2 bps).

Implied 2Q26 NCOs screen in line with EVR but below Street. SYF's Apr NCOs (adjusted for cycle day count) totaled $461M

or 5.5%, decreasing 48 bps YoY and increasing 1 bp MoM. Assuming historical seasonal trends, April's data implies 2Q26 NCOs

of 5.41%, which screen in line with EVR but below Street (+3 bps/-13 bps). The pace of YoY improvement has continued to

moderate (-48 bps in April vs. -80 bps in March).

Loan balances screen above EVR expectations.