8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

January 20, 2017

Date of Report

(Date of earliest event reported)

SYNCHRONY FINANCIAL

(Exact name of registrant as specified in its charter)

Delaware	001-36560	51-0483352
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

777 Long Ridge Road, Stamford, Connecticut	06902
(Address of principal executive offices)	(Zip Code)

(203) 585-2400

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 20, 2017, Synchrony Financial (the “Company”) issued a press release setting forth the Company’s fourth quarter 2016 earnings. A copy of the Company’s press release is being furnished as Exhibit 99.1 and hereby incorporated by reference. The information furnished pursuant to this Item 2.02, including Exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are being furnished as part of this report:

Number	Description
99.1	Press release, dated January 20, 2017, issued by Synchrony Financial
99.2	Financial Data Supplement of the Company for the quarter ended December 31, 2016
99.3	Financial Results Presentation of the Company for the quarter ended December 31, 2016
99.4	Explanation of Non-GAAP Measures

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SYNCHRONY FINANCIAL
Date: January 20, 2017	By:	/s/ Jonathan Mothner
	Name:	Jonathan Mothner
	Title:	Executive Vice President, General Counsel and Secretary

EXHIBIT INDEX

Number	Description
99.1	Press release, dated January 20, 2017, issued by Synchrony Financial
99.2	Financial Data Supplement of the Company for the quarter ended December 31, 2016
99.3	Financial Results Presentation of the Company for the quarter ended December 31, 2016
99.4	Explanation of Non-GAAP Measures

EX-99.1

Exhibit 99.1

Contacts:

Investor Relations    Media Relations

Greg Ketron    Samuel Wang

(203) 585-6291    (203) 585-2933

For Immediate Release: January 20, 2017

Synchrony Financial Reports Fourth Quarter Net Earnings of $576 Million or $0.70 Per Diluted Share

STAMFORD, Conn. – Synchrony Financial (NYSE: SYF) today announced fourth quarter 2016 net earnings of $576 million, or $0.70 per diluted share.

• Net interest income increased 13% from the fourth quarter of 2015 to $3.6 billion

• Loan receivables grew $8 billion, or 12%, from the fourth quarter of 2015 to $76 billion

• Purchase volume increased 9% from the fourth quarter of 2015

• Strong deposit growth continued, up $9 billion, or 20%, over the fourth quarter of 2015

• Launched Fareportal program

• Announced a new multi-year agreement with Henry Schein Financial Services, LLC

• Quarterly common stock dividend payment of $0.13 per share and repurchased $238 million of Synchrony Financial common stock

“We are pleased with the significant progress we made in 2016. We generated strong organic growth across our sales platforms which resulted in significant revenue growth, substantial operating leverage, and attractive returns. We also signed and renewed several key relationships, expanded our network, continued to drive digital innovations and analytics capabilities, and supported our business with robust growth in our direct deposit platform. We did this while maintaining a strong balance sheet and returning capital to shareholders through growth and the execution of our initial capital plan which included dividends and share repurchases,” said Margaret Keane, President and Chief Executive Officer of Synchrony Financial. “As we look to 2017, we believe our strategic focus and partner-centric business model position us well for future opportunities and continued growth.”

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Business and Financial Highlights for the Fourth Quarter of 2016

All comparisons below are for the fourth quarter of 2016 compared to the fourth quarter of 2015, unless otherwise noted.

Earnings

• Net interest income increased $420 million, or 13%, to $3.6 billion, primarily driven by strong loan receivables growth. Net interest income after retailer share arrangements increased 14%.

• Provision for loan losses increased $253 million to $1.076 billion due to higher loan loss reserve build and loan receivables growth.

• Other income decreased $2 million to $85 million primarily due to higher loyalty program expense, partially offset by higher interchange revenue.

• Other expense increased $48 million to $918 million, primarily driven by business growth.

• Net earnings totaled $576 million compared to $547 million in the fourth quarter of 2015.

Balance Sheet

• Period-end loan receivables growth remained strong at 12%, primarily driven by purchase volume growth of 9% and average active account growth of 6%.

• Deposits grew to $52 billion, up $9 billion, or 20%, and comprised 72% of funding compared to 64% last year.

• The Company’s balance sheet remained strong with total liquidity (liquid assets and undrawn credit facilities) of $20 billion, or 23% of total assets.

• The estimated Common Equity Tier 1 ratio under Basel III subject to transition provisions was 17.2% and the estimated fully phased-in Common Equity Tier 1 ratio under Basel III was 17.0%.

Key Financial Metrics

• Return on assets was 2.6% and return on equity was 16.3%.

• Net interest margin increased 49 basis points to 16.22%.

• Efficiency ratio was 31.6%, compared to 34.0% in the fourth quarter of 2015, driven by positive operating leverage arising from strong revenue growth that exceeded expense growth.

Credit Quality

• Loans 30+ days past due as a percentage of total period-end loan receivables were 4.32% compared to 4.06% last year.

• Net charge-offs as a percentage of total average loan receivables were 4.62% compared to 4.23% last year.

• The allowance for loan losses as a percentage of total period-end loan receivables was 5.69% compared to 5.12% last year.

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Sales Platforms

• Retail Card interest and fees on loans increased 12%, driven primarily by purchase volume growth of 8% and period-end loan receivables growth of 11%. Average active account growth was 5%. Loan receivables growth was broad-based across partner programs.

• Payment Solutions interest and fees on loans increased 13%, driven primarily by purchase volume growth of 13% and period-end loan receivables growth of 15%. Average active account growth was 12%. Loan receivables growth was led by the home furnishings, automotive, and power product categories.

• CareCredit interest and fees on loans increased 11%, driven primarily by purchase volume growth of 10% and period-end loan receivables growth of 10%. Average active account growth was 8%. Loan receivables growth was led by the dental and veterinary specialties.

Corresponding Financial Tables and Information

No representation is made that the information in this news release is complete. Investors are encouraged to review the foregoing summary and discussion of Synchrony Financial's earnings and financial condition in conjunction with the detailed financial tables and information that follow and in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed February 25, 2016, and the Company’s forthcoming Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The detailed financial tables and other information are also available on the Investor Relations page of the Company’s website at www.investors.synchronyfinancial.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.

Conference Call and Webcast Information

On Friday, January 20, 2017, at 8:30 a.m. Eastern Time, Margaret Keane, President and Chief Executive Officer, and Brian Doubles, Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations page on the Synchrony Financial corporate website, www.investors.synchronyfinancial.com, under Events and Presentations. A replay will be available on the website or by dialing (888) 843-7419 (U.S. domestic) or (630) 652-3042 (international), passcode 42016#, and can be accessed beginning approximately two hours after the event through February 3, 2017.

About Synchrony Financial

Synchrony Financial (NYSE: SYF) is one of the nation’s premier consumer financial services companies. Our roots in consumer finance trace back to 1932, and today we are the largest provider of private label credit cards in the United States based on purchase volume and receivables.* We provide a range of credit products through programs we have established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers to help generate growth for our partners and offer financial flexibility to our customers. Through our partners’ over 350,000 locations across the United States and Canada, and their websites and mobile applications, we offer our customers a variety of credit products to finance the purchase of goods and services. Synchrony Financial offers private label and co-branded Dual Card™ credit cards, promotional financing and installment lending, loyalty programs and FDIC-insured savings products

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through Synchrony Bank. More information can be found at www.synchronyfinancial.com, facebook.com/SynchronyFinancial,www.linkedin.com/company/synchrony-financial and twitter.com/SYFNews.

*Source: The Nilson Report (May 2016, Issue # 1087) - based on 2015 data.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as “outlook,” “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “will,” “should,” “may” or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated; retaining existing partners and attracting new partners, concentration of our revenue in a small number of Retail Card partners, promotion and support of our products by our partners, and financial performance of our partners; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to securitize our loans, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loans, and lower payment rates on our securitized loans; our ability to grow our deposits in the future; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk, the sufficiency of our allowance for loan losses and the accuracy of the assumptions or estimates used in preparing our financial statements; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of strategic investments; reductions in interchange fees; fraudulent activity; cyber-attacks or other security breaches; failure of third parties to provide various services that are important to our operations; our transition to a replacement third-party vendor to manage the technology platform for our online retail deposits; disruptions in the operations of our computer systems and data centers; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; damage to our reputation; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and state sales tax rules and regulations; a material indemnification obligation to GE under the tax sharing and separation agreement with GE if we cause the split-off from GE or certain preliminary transactions to fail to qualify for tax-free treatment or in the case of certain significant transfers of our stock following the split-off; obligations associated with being an independent public company; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the impact of the Consumer Financial Protection Bureau’s regulation of our business; changes to our methods of offering our CareCredit products; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit Synchrony Bank’s ability to

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pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this news release and in our public filings, including under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed on February 25, 2016. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Non-GAAP Measures

The information provided herein includes measures we refer to as “tangible common equity” and certain capital ratios, which are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see the detailed financial tables and information that follow. For a statement regarding the usefulness of these measures to investors, please see the Company’s Current Report on Form 8-K filed with the SEC today.

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EX-99.2

Exhibit 99.2

SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			4Q'16 vs. 4Q'15					Dec 31, 2016			Dec 31, 2015			YTD'16 vs. YTD'15
EARNINGS
Net interest income	$	3,628		$	3,481		$	3,212		$	3,209		$	3,208		$	420		13.1	%	$	13,530		$	12,093		$	1,437		11.9	%
Retailer share arrangements	(811		)	(757		)	(664		)	(670		)	(734		)	(77		)	10.5	%	(2,902		)	(2,738		)	(164		)	6.0	%
Net interest income, after retailer share arrangements	2,817			2,724			2,548			2,539			2,474			343			13.9	%	10,628			9,355			1,273			13.6	%
Provision for loan losses	1,076			986			1,021			903			823			253			30.7	%	3,986			2,952			1,034			35.0	%
Net interest income, after retailer share arrangements and provision for loan losses	1,741			1,738			1,527			1,636			1,651			90			5.5	%	6,642			6,403			239			3.7	%
Other income	85			84			83			92			87			(2		)	(2.3	)%	344			392			(48		)	(12.2	)%
Other expense	918			859			839			800			870			48			5.5	%	3,416			3,264			152			4.7	%
Earnings before provision for income taxes	908			963			771			928			868			40			4.6	%	3,570			3,531			39			1.1	%
Provision for income taxes	332			359			282			346			321			11			3.4	%	1,319			1,317			2			0.2	%
Net earnings	$	576		$	604		$	489		$	582		$	547		$	29		5.3	%	$	2,251		$	2,214		$	37		1.7	%
Net earnings attributable to common stockholders	$	576		$	604		$	489		$	582		$	547		$	29		5.3	%	$	2,251		$	2,214		$	37		1.7	%
COMMON SHARE STATISTICS
Basic EPS	$	0.70		$	0.73		$	0.59		$	0.70		$	0.66		$	0.04		6.1	%	$	2.71		$	2.66		$	0.05		1.9	%
Diluted EPS	$	0.70		$	0.73		$	0.58		$	0.70		$	0.65		$	0.05		7.7	%	$	2.71		$	2.65		$	0.06		2.3	%
Dividend declared per share	$	0.13		$	0.13		$	—		$	—		$	—		$	0.13		NM		$	0.26		$	—		$	0.26		NM
Common stock price	$	36.27		$	28.00		$	25.28		$	28.66		$	30.41		$	5.86		19.3	%	$	36.27		$	30.41		$	5.86		19.3	%
Book value per share	$	17.37		$	16.94		$	16.45		$	15.84		$	15.12		$	2.25		14.9	%	$	17.37		$	15.12		$	2.25		14.9	%
Tangible common equity per share(1)	$	15.34		$	14.90		$	14.46		$	13.86		$	13.14		$	2.20		16.7	%	$	15.34		$	13.14		$	2.20		16.7	%
Beginning common shares outstanding	825.5			833.9			833.8			833.8			833.8			(8.3		)	(1.0	)%	833.8			833.8			—			—	%
Issuance of common shares	—			—			—			—			—			—			—	%	—			—			—			—	%
Stock-based compensation	—			0.1			0.1			—			—			—			—		0.2			—			0.2			NM
Shares repurchased	(8.1		)	(8.5		)	—			—			—			(8.1		)	NM		(16.6		)	—			(16.6		)	NM
Ending common shares outstanding	817.4			825.5			833.9			833.8			833.8			(16.4		)	(2.0	)%	817.4			833.8			(16.4		)	(2.0	)%
Weighted average common shares outstanding	820.5			828.4			833.9			833.8			833.8			(13.3		)	(1.6	)%	829.2			833.8			(4.6		)	(0.6	)%
Weighted average common shares outstanding (fully diluted)	823.8			830.6			836.2			835.5			835.8			(12.0		)	(1.4	)%	831.5			835.5			(4.0		)	(0.5	)%
(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

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SYNCHRONY FINANCIAL
SELECTED METRICS(1)
(unaudited, $ in millions, except account data)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			4Q'16 vs. 4Q'15					Dec 31, 2016			Dec 31, 2015			YTD'16 vs. YTD'15
PERFORMANCE METRICS
Return on assets(2)	2.6		%	2.8		%	2.4		%	2.8		%	2.7		%				(0.1	)%	2.7		%	2.9		%				(0.2	)%
Return on equity(3)	16.3		%	17.4		%	14.6		%	18.1		%	17.5		%				(1.2	)%	16.6		%	19.1		%				(2.5	)%
Return on tangible common equity(4)	18.5		%	19.8		%	16.6		%	20.8		%	20.1		%				(1.6	)%	18.9		%	22.0		%				(3.1	)%
Net interest margin(5)	16.22		%	16.27		%	15.86		%	15.76		%	15.73		%				0.49	%	16.01		%	15.77		%				0.24	%
Efficiency ratio(6)	31.6		%	30.6		%	31.9		%	30.4		%	34.0		%				(2.4	)%	31.1		%	33.5		%				(2.4	)%
Other expense as a % of average loan receivables, including held for sale	5.00		%	4.92		%	5.04		%	4.82		%	5.28		%				(0.28	)%	4.93		%	5.25		%				(0.32	)%
Effective income tax rate	36.6		%	37.3		%	36.6		%	37.3		%	37.0		%				(0.4	)%	36.9		%	37.3		%				(0.4	)%
CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	4.62		%	4.38		%	4.49		%	4.70		%	4.23		%				0.39	%	4.53		%	4.33		%				0.20	%
30+ days past due as a % of period-end loan receivables(7)	4.32		%	4.26		%	3.79		%	3.85		%	4.06		%				0.26	%	4.32		%	4.06		%				0.26	%
90+ days past due as a % of period-end loan receivables(7)	2.03		%	1.89		%	1.67		%	1.84		%	1.86		%				0.17	%	2.03		%	1.86		%				0.17	%
Net charge-offs	$	847		$	765		$	747		$	780		$	697		$	150		21.5	%	$	3,139		$	2,691		$	448		16.6	%
Loan receivables delinquent over 30 days(7)	$	3,295		$	3,008		$	2,585		$	2,538		$	2,772		$	523		18.9	%	$	3,295		$	2,772		$	523		18.9	%
Loan receivables delinquent over 90 days(7)	$	1,546		$	1,334		$	1,143		$	1,212		$	1,273		$	273		21.4	%	$	1,546		$	1,273		$	273		21.4	%
Allowance for loan losses (period-end)	$	4,344		$	4,115		$	3,894		$	3,620		$	3,497		$	847		24.2	%	$	4,344		$	3,497		$	847		24.2	%
Allowance coverage ratio(8)	5.69		%	5.82		%	5.70		%	5.50		%	5.12		%				0.57	%	5.69		%	5.12		%				0.57	%
BUSINESS METRICS
Purchase volume(9)	$	35,369		$	31,615		$	31,507		$	26,977		$	32,460		$	2,909		9.0	%	$	125,468		$	113,615		$	11,853		10.4	%
Period-end loan receivables	$	76,337		$	70,644		$	68,282		$	65,849		$	68,290		$	8,047		11.8	%	$	76,337		$	68,290		$	8,047		11.8	%
Credit cards	$	73,580		$	67,858		$	65,511		$	63,309		$	65,773		$	7,807		11.9	%	$	73,580		$	65,773		$	7,807		11.9	%
Consumer installment loans	$	1,384		$	1,361		$	1,293		$	1,184		$	1,154		$	230		19.9	%	$	1,384		$	1,154		$	230		19.9	%
Commercial credit products	$	1,333		$	1,385		$	1,389		$	1,318		$	1,323		$	10		0.8	%	$	1,333		$	1,323		$	10		0.8	%
Other	$	40		$	40		$	89		$	38		$	40		$	—		—	%	$	40		$	40		$	—		—	%
Average loan receivables, including held for sale	$	72,987		$	69,525		$	66,943		$	66,705		$	65,406		$	7,581		11.6	%	$	69,220		$	62,120		$	7,100		11.4	%
Period-end active accounts (in thousands)(10)	71,890			66,781			66,491			64,689			68,314			3,576			5.2	%	71,890			68,314			3,576			5.2	%
Average active accounts (in thousands)(10)	68,701			66,639			65,531			66,134			64,892			3,809			5.9	%	66,928			62,643			4,285			6.8	%
LIQUIDITY
Liquid assets
Cash and equivalents	$	9,321		$	13,588		$	11,787		$	12,500		$	12,325		$	(3,004	)	(24.4	)%	$	9,321		$	12,325		$	(3,004	)	(24.4	)%
Total liquid assets	$	13,612		$	16,362		$	13,956		$	14,915		$	14,836		$	(1,224	)	(8.3	)%	$	13,612		$	14,836		$	(1,224	)	(8.3	)%
Undrawn credit facilities
Undrawn credit facilities	$	6,700		$	7,150		$	7,025		$	7,325		$	6,075		$	625		10.3	%	$	6,700		$	6,075		$	625		10.3	%
Total liquid assets and undrawn credit facilities	$	20,312		$	23,512		$	20,981		$	22,240		$	20,911		$	(599	)	(2.9	)%	$	20,312		$	20,911		$	(599	)	(2.9	)%
Liquid assets % of total assets	15.09		%	18.77		%	16.94		%	18.27		%	17.66		%				(2.57	)%	15.09		%	17.66		%				(2.57	)%
Liquid assets including undrawn credit facilities % of total assets	22.52		%	26.98		%	25.47		%	27.24		%	24.90		%				(2.38	)%	22.52		%	24.90		%				(2.38	)%
(1) Certain balance sheet amounts and related metrics have been updated to reflect the adoption of ASU 2015-03. More detail on this update is in footnote (1) on the Statements of Financial Position.
(2) Return on assets represents net earnings as a percentage of average total assets.
(3) Return on equity represents net earnings as a percentage of average total equity.
(4) Return on tangible common equity represents net earnings as a percentage of average tangible common equity. Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(5) Net interest margin represents net interest income divided by average interest-earning assets.
(6) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, after retailer share arrangements, plus other income.
(7) Based on customer statement-end balances extrapolated to the respective period-end date.
(8) Allowance coverage ratio represents allowance for loan losses divided by total period-end loan receivables.
(9) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(10) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.

2

SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			4Q'16 vs. 4Q'15					Dec 31, 2016			Dec 31, 2015			YTD'16 vs. YTD'15
Interest income:
Interest and fees on loans	$	3,919		$	3,771		$	3,494		$	3,498		$	3,494		$	425		12.2	%	$	14,682		$	13,179		$	1,503		11.4	%
Interest on investment securities	28			25			21			22			15			13			86.7	%	96			49			47			95.9	%
Total interest income	3,947			3,796			3,515			3,520			3,509			438			12.5	%	14,778			13,228			1,550			11.7	%
Interest expense:
Interest on deposits	188			188			179			172			165			23			13.9	%	727			607			120			19.8	%
Interest on borrowings of consolidated securitization entities	64			63			59			58			56			8			14.3	%	244			215			29			13.5	%
Interest on third-party debt	67			64			65			81			80			(13		)	(16.3	)%	277			309			(32		)	(10.4	)%
Interest on related party debt	—			—			—			—			—			—			—	%	—			4			(4		)	(100.0	)%
Total interest expense	319			315			303			311			301			18			6.0	%	1,248			1,135			113			10.0	%
Net interest income	3,628			3,481			3,212			3,209			3,208			420			13.1	%	13,530			12,093			1,437			11.9	%
Retailer share arrangements	(811		)	(757		)	(664		)	(670		)	(734		)	(77		)	10.5	%	(2,902		)	(2,738		)	(164		)	6.0	%
Net interest income, after retailer share arrangements	2,817			2,724			2,548			2,539			2,474			343			13.9	%	10,628			9,355			1,273			13.6	%
Provision for loan losses	1,076			986			1,021			903			823			253			30.7	%	3,986			2,952			1,034			35.0	%
Net interest income, after retailer share arrangements and provision for loan losses	1,741			1,738			1,527			1,636			1,651			90			5.5	%	6,642			6,403			239			3.7	%
Other income:
Interchange revenue	167			154			151			130			147			20			13.6	%	602			505			97			19.2	%
Debt cancellation fees	68			67			63			64			62			6			9.7	%	262			249			13			5.2	%
Loyalty programs	(157		)	(145		)	(135		)	(110		)	(125		)	(32		)	25.6	%	(547		)	(419		)	(128		)	30.5	%
Other	7			8			4			8			3			4			133.3	%	27			57			(30		)	(52.6	)%
Total other income	85			84			83			92			87			(2		)	(2.3	)%	344			392			(48		)	(12.2	)%
Other expense:
Employee costs	315			311			301			280			285			30			10.5	%	1,207			1,042			165			15.8	%
Professional fees	164			174			154			146			165			(1		)	(0.6	)%	638			645			(7		)	(1.1	)%
Marketing and business development	130			92			107			94			128			2			1.6	%	423			433			(10		)	(2.3	)%
Information processing	88			87			81			82			83			5			6.0	%	338			297			41			13.8	%
Other	221			195			196			198			209			12			5.7	%	810			847			(37		)	(4.4	)%
Total other expense	918			859			839			800			870			48			5.5	%	3,416			3,264			152			4.7	%
Earnings before provision for income taxes	908			963			771			928			868			40			4.6	%	3,570			3,531			39			1.1	%
Provision for income taxes	332			359			282			346			321			11			3.4	%	1,319			1,317			2			0.2	%
Net earnings attributable to common stockholders	$	576		$	604		$	489		$	582		$	547		$	29		5.3	%	$	2,251		$	2,214		$	37		1.7	%

3

SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION(1)
(unaudited, $ in millions)
	Quarter Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Dec 31, 2016 vs. Dec 31, 2015
Assets
Cash and equivalents	$	9,321		$	13,588		$	11,787		$	12,500		$	12,325		$	(3,004	)	(24.4	)%
Investment securities	5,110			3,356			2,723			2,949			3,142			1,968			62.6	%
Loan receivables:
Unsecuritized loans held for investment	52,332			47,517			44,854			41,730			42,826			9,506			22.2	%
Restricted loans of consolidated securitization entities	24,005			23,127			23,428			24,119			25,464			(1,459		)	(5.7	)%
Total loan receivables	76,337			70,644			68,282			65,849			68,290			8,047			11.8	%
Less: Allowance for loan losses	(4,344		)	(4,115		)	(3,894		)	(3,620		)	(3,497		)	(847		)	24.2	%
Loan receivables, net	71,993			66,529			64,388			62,229			64,793			7,200			11.1	%
Goodwill	949			949			949			949			949			—			—	%
Intangible assets, net	712			733			704			702			701			11			1.6	%
Other assets	2,122			2,004			1,833			2,327			2,080			42			2.0	%
Total assets	$	90,207		$	87,159		$	82,384		$	81,656		$	83,990		$	6,217		7.4	%
Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	51,896		$	49,611		$	46,220		$	44,721		$	43,215		$	8,681		20.1	%
Non-interest-bearing deposit accounts	159			204			207			256			152			7			4.6	%
Total deposits	52,055			49,815			46,427			44,977			43,367			8,688			20.0	%
Borrowings:
Borrowings of consolidated securitization entities	12,388			12,411			12,236			12,423			13,589			(1,201		)	(8.8	)%
Bank term loan	—			—			—			1,494			4,133			(4,133		)	(100.0	)%
Senior unsecured notes	7,759			7,756			7,059			6,559			6,557			1,202			18.3	%
Related party debt	—			—			—			—			—			—			—	%
Total borrowings	20,147			20,167			19,295			20,476			24,279			(4,132		)	(17.0	)%
Accrued expenses and other liabilities	3,809			3,196			2,947			2,999			3,740			69			1.8	%
Total liabilities	76,011			73,178			68,669			68,452			71,386			4,625			6.5	%
Equity:
Common stock	1			1			1			1			1			—			—	%
Additional paid-in capital	9,393			9,381			9,370			9,359			9,351			42			0.4	%
Retained earnings	5,330			4,861			4,364			3,875			3,293			2,037			61.9	%
Accumulated other comprehensive income:	(53		)	(24		)	(20		)	(31		)	(41		)	(12		)	29.3	%
Treasury Stock	(475		)	(238		)	—			—			—			(475		)	NM
Total equity	14,196			13,981			13,715			13,204			12,604			1,592			12.6	%
Total liabilities and equity	$	90,207		$	87,159		$	82,384		$	81,656		$	83,990		$	6,217		7.4	%
(1) In January 2016, we adopted ASU 2015-03, Interest–Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires the presentation of deferred issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the debt liability. Accordingly, we have reclassified issuance costs associated with our borrowings and certain brokered deposits, from other assets, and reflected as a reduction of borrowings and interest-bearing deposit accounts, as applicable, for each period presented to conform to the current period presentation. Related selected financial metrics included within this Financial Data Supplement have also been updated where applicable to reflect this reclassification.

4

SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN(1)
(unaudited, $ in millions)
	Quarter Ended
	Dec 31, 2016							Sep 30, 2016							Jun 30, 2016							Mar 31, 2016							Dec 31, 2015
				Interest		Average					Interest		Average					Interest		Average					Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/
	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	11,723		$	17	0.58	%	$	12,574		$	16	0.51	%	$	11,692		$	14	0.48	%	$	12,185		$	16	0.53	%	$	12,070		$	9	0.30	%
Securities available for sale	4,253			11		1.03	%	3,018			9		1.19	%	2,805			7		1.00	%	2,995			6		0.81	%	3,445			6		0.69	%
Loan receivables:
Credit cards, including held for sale	70,195			3,851		21.83	%	66,746			3,705		22.08	%	64,269			3,432		21.48	%	64,194			3,436		21.53	%	62,834			3,432		21.67	%
Consumer installment loans	1,374			31		8.98	%	1,331			31		9.27	%	1,235			28		9.12	%	1,159			27		9.37	%	1,163			26		8.87	%
Commercial credit products	1,367			36		10.48	%	1,390			35		10.02	%	1,373			33		9.67	%	1,313			35		10.72	%	1,361			36		10.49	%
Other	51			1		NM		58			—		—	%	66			1		NM		39			—		—	%	48			—		—	%
Total loan receivables, including held for sale	72,987			3,919		21.36	%	69,525			3,771		21.58	%	66,943			3,494		20.99	%	66,705			3,498		21.09	%	65,406			3,494		21.19	%
Total interest-earning assets	88,963			3,947		17.65	%	85,117			3,796		17.74	%	81,440			3,515		17.36	%	81,885			3,520		17.29	%	80,921			3,509		17.20	%
Non-interest-earning assets:
Cash and due from banks	691							641							774							1,277							1,268
Allowance for loan losses	(4,226		)					(3,977		)					(3,729		)					(3,583		)					(3,440		)
Other assets	3,394							3,240							3,209							3,256							3,133
Total non-interest-earning assets	(141		)					(96		)					254							950							961
Total assets	$	88,822						$	85,021						$	81,694						$	82,835						$	81,882
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	50,901		$	188	1.47	%	$	47,926		$	188	1.56	%	$	45,490		$	179	1.58	%	$	44,101		$	172	1.57	%	$	42,079		$	165	1.56	%
Borrowings of consolidated securitization entities	12,387			64		2.06	%	12,369			63		2.03	%	12,291			59		1.93	%	12,950			58		1.80	%	13,550			56		1.64	%
Bank term loan(2)	—			—		—	%	—			—		—	%	374			7		7.53	%	2,565			24		3.76	%	4,507			28		2.46	%
Senior unsecured notes	7,758			67		3.44	%	7,408			64		3.44	%	6,809			58		3.43	%	6,558			57		3.50	%	5,810			52		3.55	%
Related party debt	—			—		—	%	—			—		—	%	—			—		—	%	—			—		—	%	—			—		—	%
Total interest-bearing liabilities	71,046			319		1.79	%	67,703			315		1.85	%	64,964			303		1.88	%	66,174			311		1.89	%	65,946			301		1.81	%
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	180							203							217							226							147
Other liabilities	3,563							3,314							3,046							3,534							3,396
Total non-interest-bearing liabilities	3,743							3,517							3,263							3,760							3,543
Total liabilities	74,789							71,220							68,227							69,934							69,489
Equity
Total equity	14,033							13,801							13,467							12,901							12,393
Total liabilities and equity	$	88,822						$	85,021						$	81,694						$	82,835						$	81,882
Net interest income				$	3,628						$	3,481						$	3,212						$	3,209						$	3,208
Interest rate spread(3)						15.86	%						15.89	%						15.48	%						15.40	%						15.39	%
Net interest margin(4)						16.22	%						16.27	%						15.86	%						15.76	%						15.73	%
(1) Certain balance sheet amounts and related metrics have been updated to reflect the adoption of ASU 2015-03. More detail on this update is in footnote (1) on the Statements of Financial Position.
(2) Average interest rate on liabilities calculated above utilizes monthly average balances. The effective interest rates for the Bank term loan for the quarters ended June 30, 2016, March 31, 2016, and December 31, 2015 were 2.51%, 2.47%, and 2.26% respectively. The Bank term loan effective rate excludes the impact of charges incurred in connection with prepayments of the loan.
(3) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average interest-earning assets.

5

SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN(1)
(unaudited, $ in millions)
	Twelve Months Ended Dec 31, 2016							Twelve Months Ended Dec 31, 2015
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	11,943		$	63	0.53	%	$	11,406		$	28	0.25	%
Securities available for sale	3,327			33		0.99	%	3,142			21		0.67	%
Loan receivables:
Credit cards, including held for sale	66,533			14,424		21.68	%	59,603			12,932		21.70	%
Consumer installment loans	1,274			117		9.18	%	1,119			104		9.29	%
Commercial credit products	1,360			139		10.22	%	1,359			142		10.45	%
Other	53			2		3.77	%	39			1		2.56	%
Total loan receivables, including held for sale	69,220			14,682		21.21	%	62,120			13,179		21.22	%
Total interest-earning assets	84,490			14,778		17.49	%	76,668			13,228		17.25	%
Non-interest-earning assets:
Cash and due from banks	890							904
Allowance for loan losses	(3,879		)					(3,340		)
Other assets	3,290							2,857
Total non-interest-earning assets	301							421
Total assets	$	84,791						$	77,089
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	47,163		$	727	1.54	%	$	38,060		$	607	1.59	%
Borrowings of consolidated securitization entities	12,532			244		1.95	%	13,853			215		1.55	%
Bank term loan(2)	789			31		3.93	%	5,357			136		2.54	%
Senior unsecured notes	7,135			246		3.45	%	4,949			173		3.50	%
Related party debt	—			—		—	%	125			4		3.20	%
Total interest-bearing liabilities	67,619			1,248		1.85	%	62,344			1,135		1.82	%
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	203							152
Other liabilities	3,437							3,015
Total non-interest-bearing liabilities	3,640							3,167
Total liabilities	71,259							65,511
Equity
Total equity	13,532							11,578
Total liabilities and equity	$	84,791						$	77,089
Net interest income				$	13,530						$	12,093
Interest rate spread(3)						15.64	%						15.43	%
Net interest margin(4)						16.01	%						15.77	%
(1) Certain balance sheet amounts and related metrics have been updated to reflect the adoption of ASU 2015-03. More detail on this update is in footnote (1) on the Statements of Financial Position.
(2) Average interest rate on liabilities calculated above utilizes monthly average balances. The effective interest rates for the Bank term loan for the 12 months ended December 31, 2016 and December 31, 2015 were 2.48% and 2.23%, respectively. The Bank term loan effective rate excludes the impact of charges incurred in connection with prepayments of the loan.
(3) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average interest-earning assets.

6

SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Dec 31, 2016 vs. Dec 31, 2015
BALANCE SHEET STATISTICS
Total common equity	$	14,196		$	13,981		$	13,715		$	13,204		$	12,604		$	1,592	12.6	%
Total common equity as a % of total assets	15.74		%	16.04		%	16.65		%	16.17		%	15.01		%			0.73	%
Tangible assets	$	88,546		$	85,477		$	80,731		$	80,005		$	82,340		$	6,206	7.5	%
Tangible common equity(2)	$	12,535		$	12,299		$	12,062		$	11,553		$	10,954		$	1,581	14.4	%
Tangible common equity as a % of tangible assets(2)	14.16		%	14.39		%	14.94		%	14.44		%	13.30		%			0.86	%
Tangible common equity per share(2)	$	15.34		$	14.90		$	14.46		$	13.86		$	13.14		$	2.20	16.7	%
REGULATORY CAPITAL RATIOS(3)
	Basel III Transition
Total risk-based capital ratio(4)	18.5		%	19.5		%	19.8		%	19.4		%	18.1		%
Tier 1 risk-based capital ratio(5)	17.2		%	18.2		%	18.5		%	18.1		%	16.8		%
Tier 1 leverage ratio(6)	15.0		%	15.3		%	15.6		%	14.8		%	14.4		%
Common equity Tier 1 capital ratio(7)	17.2		%	18.2		%	18.5		%	18.1		%	16.8		%
	Basel III Fully Phased-in
Common equity Tier 1 capital ratio(7)	17.0		%	17.9		%	18.0		%	17.5		%	15.9		%
(1) Certain balance sheet amounts and related metrics have been updated to reflect the adoption of ASU 2015-03. More detail on this update is in footnote (1) on the Statements of Financial Position.
(2) Tangible common equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(3) Regulatory capital metrics at December 31, 2016 are preliminary and therefore subject to change.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments.
(7) Common equity Tier 1 capital ratio is the ratio of common equity Tier 1 capital to total risk-weighted assets, each as calculated under Basel III rules. Common equity Tier 1 capital ratio (fully phased-in) is a preliminary estimate reflecting management’s interpretation of the final Basel III rules adopted in July 2013 by the Federal Reserve Board, which have not been fully implemented, and our estimate and interpretations are subject to, among other things, ongoing regulatory review and implementation guidance.

7

SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			4Q'16 vs. 4Q'15					Dec 31, 2016			Dec 31, 2015			YTD'16 vs. YTD'15
RETAIL CARD
Purchase volume(1)(2)	$	28,996		$	25,285		$	25,411		$	21,550		$	26,768		$	2,228		8.3	%	$	101,242		$	92,190		$	9,052		9.8	%
Period-end loan receivables	$	52,701		$	48,010		$	46,705		$	45,113		$	47,412		$	5,289		11.2	%	$	52,701		$	47,412		$	5,289		11.2	%
Average loan receivables, including held for sale	$	49,897		$	47,420		$	45,861		$	45,900		$	44,958		$	4,939		11.0	%	$	47,421		$	42,687		$	4,734		11.1	%
Average active accounts (in thousands)(2)(3)	54,489			52,959			52,314			52,969			52,038			2,451			4.7	%	53,344			50,358			2,986			5.9	%
Interest and fees on loans(2)	$	2,909		$	2,790		$	2,585		$	2,614		$	2,594		$	315		12.1	%	$	10,898		$	9,774		$	1,124		11.5	%
Other income(2)	$	70		$	70		$	69		$	79		$	76		$	(6	)	(7.9	)%	$	288		$	339		$	(51	)	(15.0	)%
Retailer share arrangements(2)	$	(801	)	$	(752	)	$	(656	)	$	(661	)	$	(723	)	$	(78	)	10.8	%	$	(2,870	)	$	(2,688	)	$	(182	)	6.8	%
PAYMENT SOLUTIONS
Purchase volume(1)	$	4,194		$	4,152		$	3,903		$	3,392		$	3,714		$	480		12.9	%	$	15,641		$	13,668		$	1,973		14.4	%
Period-end loan receivables	$	15,567		$	14,798		$	13,997		$	13,420		$	13,543		$	2,024		14.9	%	$	15,567		$	13,543		$	2,024		14.9	%
Average loan receivables	$	15,146		$	14,391		$	13,644		$	13,482		$	13,192		$	1,954		14.8	%	$	14,188		$	12,436		$	1,752		14.1	%
Average active accounts (in thousands)(3)	8,844			8,461			8,153			8,134			7,896			948			12.0	%	8,410			7,478			932			12.5	%
Interest and fees on loans	$	523		$	505		$	467		$	457		$	462		$	61		13.2	%	$	1,952		$	1,719		$	233		13.6	%
Other income	$	3		$	3		$	3		$	4		$	3		$	—		—	%	$	13		$	17		$	(4	)	(23.5	)%
Retailer share arrangements	$	(9	)	$	(3	)	$	(7	)	$	(7	)	$	(10	)	$	1		(10.0	)%	$	(26	)	$	(45	)	$	19		(42.2	)%
CARECREDIT
Purchase volume(1)	$	2,179		$	2,178		$	2,193		$	2,035		$	1,978		$	201		10.2	%	$	8,585		$	7,757		$	828		10.7	%
Period-end loan receivables	$	8,069		$	7,836		$	7,580		$	7,316		$	7,335		$	734		10.0	%	$	8,069		$	7,335		$	734		10.0	%
Average loan receivables	$	7,944		$	7,714		$	7,438		$	7,323		$	7,256		$	688		9.5	%	$	7,611		$	6,997		$	614		8.8	%
Average active accounts (in thousands)(3)	5,368			5,219			5,064			5,031			4,958			410			8.3	%	5,174			4,807			367			7.6	%
Interest and fees on loans	$	487		$	476		$	442		$	427		$	438		$	49		11.2	%	$	1,832		$	1,686		$	146		8.7	%
Other income	$	12		$	11		$	11		$	9		$	8		$	4		50.0	%	$	43		$	36		$	7		19.4	%
Retailer share arrangements	$	(1	)	$	(2	)	$	(1	)	$	(2	)	$	(1	)	$	—		—	%	$	(6	)	$	(5	)	$	(1	)	20.0	%
TOTAL SYF
Purchase volume(1)(2)	$	35,369		$	31,615		$	31,507		$	26,977		$	32,460		$	2,909		9.0	%	$	125,468		$	113,615		$	11,853		10.4	%
Period-end loan receivables	$	76,337		$	70,644		$	68,282		$	65,849		$	68,290		$	8,047		11.8	%	$	76,337		$	68,290		$	8,047		11.8	%
Average loan receivables, including held for sale	$	72,987		$	69,525		$	66,943		$	66,705		$	65,406		$	7,581		11.6	%	$	69,220		$	62,120		$	7,100		11.4	%
Average active accounts (in thousands)(2)(3)	68,701			66,639			65,531			66,134			64,892			3,809			5.9	%	66,928			62,643			4,285			6.8	%
Interest and fees on loans(2)	$	3,919		$	3,771		$	3,494		$	3,498		$	3,494		$	425		12.2	%	$	14,682		$	13,179		$	1,503		11.4	%
Other income(2)	$	85		$	84		$	83		$	92		$	87		$	(2	)	(2.3	)%	$	344		$	392		$	(48	)	(12.2	)%
Retailer share arrangements(2)	$	(811	)	$	(757	)	$	(664	)	$	(670	)	$	(734	)	$	(77	)	10.5	%	$	(2,902	)	$	(2,738	)	$	(164	)	6.0	%
(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(2) Includes activity and balances associated with loan receivables held for sale.
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.

8

SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)(2)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015
COMMON EQUITY MEASURES
GAAP Total common equity	$	14,196		$	13,981		$	13,715		$	13,204		$	12,604
Less: Goodwill	(949		)	(949		)	(949		)	(949		)	(949		)
Less: Intangible assets, net	(712		)	(733		)	(704		)	(702		)	(701		)
Tangible common equity	$	12,535		$	12,299		$	12,062		$	11,553		$	10,954
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	337			299			282			281			280
Basel III - Common equity Tier 1 (fully phased-in)	$	12,872		$	12,598		$	12,344		$	11,834		$	11,234
Adjustment related to capital components during transition	263			273			266			265			399
Basel III - Common equity Tier 1 (transition)	$	13,135		$	12,871		$	12,610		$	12,099		$	11,633
RISK-BASED CAPITAL
Common equity Tier 1	$	13,135		$	12,871		$	12,610		$	12,099		$	11,633
Add: Allowance for loan losses includible in risk-based capital	994			923			890			869			898
Risk-based capital	$	14,129		$	13,794		$	13,500		$	12,968		$	12,531
ASSET MEASURES
Total average assets	$	88,822		$	85,021		$	81,694		$	82,835		$	81,882
Adjustments for:
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,059		)	(1,117		)	(1,113		)	(1,117		)	(991		)
Total assets for leverage purposes	$	87,763		$	83,904		$	80,581		$	81,718		$	80,891
Risk-weighted assets - Basel III (fully phased-in)(3)	$	75,941		$	70,448		$	68,462		$	67,697		$	70,493
Risk-weighted assets - Basel III (transition)(3)	$	76,179		$	70,660		$	68,188		$	66,689		$	69,224
TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	17.37		$	16.94		$	16.45		$	15.84		$	15.12
Less: Goodwill	(1.16		)	(1.14		)	(1.14		)	(1.14		)	(1.14		)
Less: Intangible assets, net	(0.87		)	(0.90		)	(0.85		)	(0.84		)	(0.84		)
Tangible common equity per share	$	15.34		$	14.90		$	14.46		$	13.86		$	13.14
(1) Certain balance sheet amounts and related metrics have been updated to reflect the adoption of ASU 2015-03. More detail on this update is in footnote (1) on the Statements of Financial Position.
(2) Regulatory measures at December 31, 2016 are presented on an estimated basis.
(3) Key differences between Basel III transitional rules and fully phased-in Basel III rules in the calculation of risk-weighted assets include, but not limited to, risk weighting of deferred tax assets and adjustments for certain intangible assets.

9

EX-99.3

4Q'16 Financial Results January 20, 2017 Exhibit 99.3

2 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results. No representation is made that the information in these slides is complete. For additional information, see the earnings release and financial supplement included as exhibits to our Current Report on Form 8-K filed today and available on our website (www.synchronyfinancial.com) and the SEC's website (www.sec.gov). All references to net earnings and net income are intended to have the same meaning. This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements may be identified by words such as “outlook,” “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “will,” “should,” “may” or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated; retaining existing partners and attracting new partners, concentration of our revenue in a small number of Retail Card partners, promotion and support of our products by our partners, and financial performance of our partners; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to securitize our loans, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loans, and lower payment rates on our securitized loans; our ability to grow our deposits in the future; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk, the sufficiency of our allowance for loan losses and the accuracy of the assumptions or estimates used in preparing our financial statements; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of strategic investments; reductions in interchange fees; fraudulent activity; cyber-attacks or other security breaches; failure of third parties to provide various services that are important to our operations; our transition to a replacement third-party vendor to manage the technology platform for our online retail deposits; disruptions in the operations of our computer systems and data centers; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; damage to our reputation; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and state sales tax rules and regulations; a material indemnification obligation to GE under the tax sharing and separation agreement with GE if we cause the split-off from GE or certain preliminary transactions to fail to qualify for tax-free treatment or in the case of certain significant transfers of our stock following the split-off; obligations associated with being an independent public company; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the impact of the Consumer Financial Protection Bureau's regulation of our business; changes to our methods of offering our CareCredit products; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit Synchrony Bank's ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws. For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this presentation and in our public filings, including under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed on February 25, 2016. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. Differences between this presentation and the supplemental financials may occur due to rounding. Non-GAAP Measures The information provided herein includes certain capital ratios, which are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The reconciliations of such measures to the most directly comparable GAAP measures are included in the appendix of this presentation. Disclaimers

3 4Q'16 Highlights Financial highlights • $576 million Net earnings, $0.70 diluted EPS • Purchase volume +9%, Loan receivables +12%, Net interest income +13% • Net charge-offs at 4.62% compared to 4.23% in the prior year  30+ delinquency at 4.32% compared to 4.06% in the prior year • Expenses +6% ... Efficiency ratio 31.6% compared to 34.0% in the prior year • Deposits up $8.7 billion compared to prior year, comprise 72% of funding • Strong capital and liquidity  17.2% CET1 & $13.6 billion liquid assets (a) (a) CET1 % calculated under the Basel III transitional guidelines Business highlights  Launched new program  Introduced SyPI and launched CareCredit Pay My Provider to expand digital capabilities  Announced new partnership  Completed quarterly capital return  $0.13 quarterly dividend  $238 million share repurchase

4 Growth Metrics 4Q'15 4Q'16 4Q'15 4Q'16 4Q'15 4Q'16 4Q'15 4Q'16 +9% Purchase volume $ in billions Loan receivables $ in billions Average active accounts in millions Interest and fees on loans $ in millions $32.5 $35.4 $68.3 $76.3 $3,919 $3,494 68.7 64.9 +6% +12% +12%

5 Platform Results Retail Card Loan receivables, $ in billions $47.5 $52.6 4Q'15 4Q'16  Strong receivable growth across partner programs  Interest and fees on loans up 12% driven by receivable growth Payment Solutions Loan receivables, $ in billions $13.5 $15.6 4Q'15 4Q'16  Broad receivable growth led by home furnishings, auto and power  Interest and fees on loans up 13% driven by receivable growth CareCredit Loan receivables, $ in billions $7.3 $8.1 4Q'15 4Q'16  Receivable growth led by dental and veterinary  Interest and fees on loans up 11% driven by receivable growth Purchase volume Accounts $26.8 52.0 $29.0 54.5 +8% +5% $3.7 7.9 $4.2 8.8 +13% +12% $2.0 5.0 $2.2 5.4 +10% +8% Interest and fees on loans $2,594 $2,909 +12% $462 $523 +13% $438 $487 +11% +11% +15% +10% (a) (a) Accounts represent average active accounts in millions, which are credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. Purchase volume $ in billions and interest and fees on loans $ in millions V% V% V%

6 Financial Results Summary earnings statement Fourth quarter 2016 highlights $ in millions, except ratios Total interest income $3,947 $3,509 $438 12% Total interest expense 319 301 (18) (6)% Net interest income (NII) 3,628 3,208 420 13% Retailer share arrangements (RSA) (811) (734) (77) (10)% NII, after RSA 2,817 2,474 343 14% Provision for loan losses 1,076 823 (253) (31)% Other income 85 87 (2) (2)% Other expense 918 870 (48) (6)% Pre-Tax earnings 908 868 40 5% Provision for income taxes 332 321 (11) (3)% Net earnings $576 $547 $29 5% Return on assets 2.6% 2.7% (0.1)pts. 4Q'16 4Q'15 % $ B/(W) • $576 million Net earnings, 2.6% ROA • Net interest income up 13% driven by growth in loan receivables  Interest and fees on loans up 12% driven by receivable growth  Interest expense increase driven by growth • Provision for loan losses driven by higher reserve build and growth  30+ delinquency 4.32% compared to 4.06% in the prior year  NCO's 4.62% compared to 4.23% in the prior year • Other expense up 6%  Other expense increase driven primarily by growth

7 Net Interest Income Fourth quarter 2016 highlights • Net interest income increased 13% compared to prior year driven by growth in receivables  Interest and fees on loans increased 12% compared to prior year driven by average loan receivable growth • Net interest margin up 49bps.  Loan receivables mix as a percent of total earning assets increased from 80.8% to 82.0%  Receivable yield 21.36%, up 17bps. versus prior year  Total interest-bearing liabilities cost decreased 2bps. to 1.79%, due to more favorable funding mix Net interest income $ in millions, % of average interest-earning assets 15.73% 16.22% 4Q'15 4Q'16 +13% $3,208 $3,628

8 Asset Quality Metrics Net charge-offs $ in millions, % of average loan receivables including held for sale $663 $668 $693 $633 $697 4.32% 4.53% 4.63% 4.02% 4.23% Allowance for loan losses $ in millions, % of period-end loan receivables 5.28% $3,236 5.59% $3,255 5.38% $3,302 5.31% $3,371 5.12% $3,497 $780 4.70% 5.50% $3,620 4Q'14 4Q'15 1Q'15 2Q'15 3Q'15 1Q'16 2Q'16 3Q'16 $747 4.49% 4Q'14 4Q'15 1Q'15 2Q'15 3Q'15 1Q'16 2Q'16 3Q'16 5.70% $3,894 90+ days past due $ in millions, % of period-end loan receivables $1,162 1.90% $1,056 1.81% $933 1.52% $1,102 1.73% $1,273 1.86% $1,212 1.84% $1,143 1.67% $765 4.38% 4Q'16 4Q'14 4Q'15 1Q'15 2Q'15 3Q'15 1Q'16 2Q'16 3Q'16 4Q'16 $1,334 1.89% 4Q'16 5.82% $4,115 30+ days past due $ in millions, % of period-end loan receivables $2,772 $2,536 $2,209 $2,171 $2,553 $2,538 $2,585 4.02% 4.14% 3.79% 3.53% 4.06% 3.85% 3.79% $3,008 4.26% 4Q'14 4Q'15 1Q'14 2Q'15 3Q'15 1Q'16 2Q'16 3Q'16 4Q'16 $3,295 $1,546 2.03% $4,344 5.69% $847 4.62% 4.32%

9 Other expense $ in millions Other Expense Employee costs $285 $315 $30 11% Professional fees 165 164 (1) (1)% Marketing/BD 128 130 2 2% Information processing 83 88 5 6% Other 209 221 12 6% Other expense $870 $918 $48 6% Efficiency 34.0% 31.6% (2.4)pts. $870 (a) “Other Expense” divided by sum of “NII, after RSA” plus “Other income” (1) V$ V% +6% (a) $918 4Q'15 4Q'16 Fourth quarter 2016 highlights • Expense increased 6% vs. prior year • Employee costs up $30 million  Driven by employees added for growth and bringing certain 3rd party services in-house • Professional fees down $1 million  Driven by reduction of separation and 3rd party costs partially offset by growth • Marketing/BD costs up $2 million  Driven by growth and strategic investments • Information processing up $5 million  Driven by continued IT investment and purchase volume growth • Other up $12 million  Increase primarily driven by growth partially offset with reduction in separation costs • Efficiency ratio of 31.6% improved 2.4pts. compared to prior year

10 Funding, Capital and Liquidity (b) Liquid assets $14.8 $13.6 Undrawn credit facilities 6.1 6.7 Total liquidity $20.9 $20.3 Basel III (fully phased-in) 15.9% 17.0% Liquidity % of total assets, $ in billions 4Q'16 22.5% 24.9% 4Q'15 Capital ratios Common equity Tier 1 % - Basel III transitional 4Q’15 (c) Does not include unencumbered assets in the Bank that could be pledged (c) 4Q’16 (a) Estimated percentages and amounts (b) Calculated under the Basel III transition guidelines 16.8% 17.2% (a) Funding sources $ in billions 4Q'15 4Q'16 Variance Deposits 64% 72% +8pts. Securitization 20% 17% (3)pts. 3rd Party Debt 16% 11% (5)pts. $72.2 Deposits Securitization 3rd Party Debt V$ $43.3 $13.6 $10.7 $52.0 $12.4 $7.8 $67.6 (2.9) (1.2) +8.7

11 Loan Receivables Growth 7% - 9% 12% Strong organic growth driven by value propositions and strategic investments Net Interest Margin ~ 15.5% 16.0% Higher receivable yield and favorable earning asset mix Net Charge-off Rate 4.3% - 4.5% 4.5% Normalization off recent lows Efficiency Ratio < 34.0% 31.1% Driven by higher margins and increased productivity ROA 2.5% - 3.0% 2.7% Better margin and lower expense partially offset with higher provision expense 2016 Outlook 2016 Actual Drivers (a) 2016 outlook provided during January 22, 2016 earnings conference call. Synchrony Financial does not affirm guidance during the year (a) 2016 Performance

12 Loan Receivables Growth 7% - 9% Net Interest Margin 15.75% - 16.00% Net Charge-off Rate 4.75% - 5.00% Efficiency Ratio ~ 32.0% ROA 2.5% + 2017 Outlook 2017 Outlook

13 Strategic Priorities Grow our business through our three sales platforms Position business for long-term growth Operate with a strong balance sheet and financial profile Leverage strong capital position Expand robust data, analytics and digital capabilities • Grow existing retailer penetration • Continue to innovate and provide robust cardholder value propositions • Add new partners and programs with attractive risk and return profiles • Accelerate capabilities: marketing, analytics and loyalty • Continue to leverage SKU level data and invest in CRM to differentiate marketing capabilities • Deliver leading capabilities across digital and mobile technologies • Explore opportunities to expand the core business (e.g., small business and proprietary networks) • Continue to grow Synchrony Bank — enhance offerings to increase loyalty, diversify funding and drive profitability • Maintain strong capital and liquidity • Deliver earnings growth at attractive returns • Organic growth, program acquisitions, and start-up opportunities • Continue capital plan execution through dividends and share repurchase program, subject to Board and regulatory approvals • Invest in capability-enhancing technologies and businesses

Engage with us.

15 Appendix

16 Non-GAAP Reconciliation We present certain capital ratios. Our Basel III Tier 1 common ratio, calculated on a fully phased-in basis, is a preliminary estimate reflecting management’s interpretation of the final Basel III capital rules adopted in July 2013 by the Federal Reserve Board, which have not been fully implemented, and our estimate and interpretations are subject to, among other things, ongoing regulatory review and implementation guidance. This ratio is not currently required by regulators to be disclosed, and therefore is considered a non-GAAP measure. We believe this capital ratio is a useful measure to investors because it is widely used by analysts and regulators to assess the capital position of financial services companies, although this ratio may not be comparable to similarly titled measures reported by other companies.

17 Non-GAAP Reconciliation The following table sets forth a reconciliation of each component of our capital ratios to the comparable GAAP component at December 31, 2016. COMMON EQUITY MEASURES GAAP Total common equity .................................................................................................... Less: Goodwill ............................................................................................................... Less: Intangible assets, net ............................................................................................. Tangible common equity ........................................................................................................ Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss) ................................................................ Basel III – Common equity Tier 1 (fully phased-in) ............................................................ Adjustments related to capital components during transition ........................................ Basel III – Common equity Tier 1 (transition) ................................................................... Risk-weighted assets – Basel III (fully phased-in) .............................................................. Risk-weighted assets – Basel III (transition) ....................................................................... $14,196 (949) (712) $12,535 337 $12,872 263 $13,135 $75,941 $76,179 $ in millions at December 31, 2016

EX-99.4

Exhibit 99.4

Explanation of Non-GAAP Measures

The information provided in this Form 8-K and exhibits includes measures which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP").

We present certain capital ratios in this Form 8-K and exhibits. Our Basel III Tier 1 common ratio, calculated on a fully phased-in basis, is a preliminary estimate reflecting management’s interpretation of the final Basel III capital rules adopted in July 2013 by the Federal Reserve Board, which have not been fully implemented, and our estimate and interpretations are subject to, among other things, ongoing regulatory review and implementation guidance. This ratio is not currently required by regulators to be disclosed, and therefore is considered a non-GAAP measure. We believe this capital ratio is a useful measure to investors because it is widely used by analysts and regulators to assess the capital position of financial services companies, although this ratio may not be comparable to similarly titled measures reported by other companies. The reconciliation of our Basel III Tier 1 common ratio, calculated on a fully phased-in basis, to the comparable GAAP component is included in the detailed financial tables included in Exhibit 99.2.

We also present a measure we refer to as “tangible common equity” in this Form 8-K and exhibits. Tangible common equity itself is not a measure presented in accordance with GAAP. We believe tangible common equity is a more meaningful measure to investors of the net asset value of the Company. The reconciliation of tangible common equity, to total equity reported in accordance with GAAP is included in the detailed financial tables included in Exhibit 99.2.