SYF: May Card Data - Stable to better credit trends and continued modest growth.

Research evidence excerpt

SYF: May Card Data - Stable to better credit trends and continued modest growth.

Synchrony Financial

For valuation methods used to determine, and risks that may impede achievement of, price targets for covered companies, please

see the most recent company-specific research report at www.rbcinsightresearch.com or send a request to RBC Capital Markets

Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.

Valuation

Our price target of $85, which supports our Sector Perform rating, is ~9x our 2026 EPS estimate. Our price target primarily reflects

our profitability and risk assessment of the company relative to a peer group of similar companies. Our multiple assumption is

consistent with a peer group of card issuers.

Risks to rating and price target

The primary risk to our price target and rating is a significant deterioration in the macroeconomic environment and the health of

consumers that could drive steeper delinquency and credit losses. Secondary risks to our rating and price target include the loss of

major merchant/retail partners, a material increase in funding costs, any reduction in consumer spending volumes that could lead

to a decline in loan balances, and a shift in consumer preferences away from Synchrony’s products or increased pressure from the

competitive environment that could drive a loss in market share.

Conflicts policy

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To access our current policy, clients should refer to

https://www.rbccm.com/global/file-414164.pdf

or send a request to RBC Capital Markets Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South