Synchrony Financial boosted the floor of its full-year profit outlook based on expectations for net interest income growth and lower funding liabilities costs in the months ahead.
The lender, once part of General Electric, lifted the low end of its previous guidance range for earnings by 15 cents to $9.25 per share. The top end still sits at $9.50 a share.
For the second quarter, Synchrony posted a profit of $885 million, or $2.59 a share, compared with $967 million, or $2.50 a share, in the same quarter a year earlier on a bigger base of shares outstanding. Analysts polled by FactSet had been expecting just $2.14 a share.
Net interest income rose 2% to $4.6 billion, driven by lower interest-bearing liabilities costs tied to lower benchmark rates. That was partially offset by a lower liquidity profile and loan receivables yield, the company said.
Purchase volume jumped 8% to $49.8 billion, with some of the biggest gains in home and auto lending, its co-branded and private label credit cards for online retailers, and its general-purpose credit cards and loyalty programs.
Chief Executive Brain Doubles said customer engagement was strong during the quarter as new accounts continued to grow, average active accounts inflected back to growth and spending per account jumped on each of its five platforms.
Shares rose 2.2% to $75 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
July 21, 2026 06:45 ET (10:45 GMT)
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