2Q26 Recap: Resilient Spend and Stable Credit; Spending for Expected 2H Growth

Research evidence excerpt

2Q26 Recap: Resilient Spend and Stable Credit; Spending for Expected 2H Growth

se +8% Y/Y to $50B, with

growth across all platforms. On a Y/Y basis, D&V purchase vol grew +12%, digital +9%, lifestyle and

home & auto each +6%, while H&W grew +2%. Discretionary spend grew double-digits, in line with

non-discretionary spend despite elevated fuel costs, and represented a larger mix of total out-of-

partner spend across super prime, prime, and non-prime.

NIM drivers - On a Y/Y basis, NIM of 15.08% increased +30 bps, driven by a +29 bps benefit on

lower IB liability costs, a +23 bps benefit from a higher mix of loan receivables as a % of interest-

earning assets, offset by a -13 bps impact from a smaller liquidity portfolio and a -9 bps impact

from lower yields on receivables. On a Q/Q basis, NIM declined -42 bps due to lower late fees driven

by strong credit performance.

Receivable growth expected to accelerate in 2H26 as SYF continues to add / renew partners

- SYF added / renewed 15+ partnerships in 2Q. Mgmt noted growth should be supported by

John Hecht * | Equity Analyst

recent programs launches, as there is typically a ~18 mo lag between conversion and activation / +1 (415) 229-1569 | jhecht@jefferies.com

utilization.

Alexander Villalobos-Morsink * | Equity

AssociateThoughts on the stock - Steady credit performance and capital returns complement an EPS

+1 (415) 229-1479 | avillalobos@jefferies.com

beat driven by lower provision. Focus remains on receivables growth, which accelerated Q/Q and

is expected to accel further in 2H. EPS guide was raised at the low-end with other guide points Yuna Sohn * | Equity Associate

+1 (415) 416-9219 | ysohn@jefferies.com

unchanged. SYF's repurchase activity was fairly consistent Q/Q with capital returns expected to