Pre-2Q26 Catchup & Model Update

Research evidence excerpt

Pre-2Q26 Catchup & Model Update

Deutsche Bank

Research

Rating Company Date

Buy Synchrony Financial 17 June 2026

North America Reuters Bloomberg Rating Buy

United States SYF.N SYF US Price target (USD) 101.00 Price at 16 Jun 26 75.29

52-week range 88.47 – 60.28

Financial

Consumer Finance Valuation & Risks

Mark DeVries

We caught up with Synchrony ahead of 2Q26 earnings to discuss any recent Research Analyst

+1-212-250-4081 trends in their business intra-quarter. Below are our takeaways and estimate

updates into the quarter. Michael Dunlevy, CFA

Research Associate

+1-212-250-9888

Call & Intra-quarter Takeaways

• Third consecutive month of positive loan growth achieved with May 2026

end-of-period assets growing 1.80%, outpacing typical seasonal trends,

while purchase volumes tracked consistently in the mid- to high-single-

digit range.

• Credit tightening actions from H2 2025 are seasoning on schedule, with

full positive impacts expected in late 2026 and into 2027, though

approximately 30% of previous underwriting adjustments have already

been reversed as conditions stabilized.

• Delinquency performance outpaced historical norms at 4.20% for 30+

day delinquencies in May 2026, beating normalized seasonality from the

2017-2019 baseline period, while net charge-offs remained stable at

5.50% within the 5.50%-6.00% long-term target range.

• Management maintains strict underwriting discipline, explicitly stating

the company will not accept lower returns at the margins or bend risk-

adjusted standards to chase volume growth, prioritizing sustainable

profitability over asset expansion.

• Partnership renewal momentum continues strongly with over 300

partners added or renewed since 2021, including 16 of the top 20