Synchrony Financial Reports 6% Q1 Purchase Volume Gain, Launches $6.5B Buyback
Synchrony Financial reported 6% Q1 purchase volume growth and 15% new account originations, and lifted mid-single-digit loan growth guidance as Walmart OnePay and Lowe's acquisitions boost H2 momentum. The company unveiled $6.5 billion share repurchase, projected 125–150 basis points of Basel III capital relief and set EPS guidance at $9.10–$9.50.
1. Record Q1 Purchase Volume and New Accounts
Synchrony achieved a record 6% year-over-year increase in Q1 purchase volume and originations jumped 15%, marking the strongest start to the year since 2020. This growth was driven by broad consumer engagement across core card products and strong promotional loadings in key retail segments.
2. Loan Growth Guidance and Acquisition Impact
Management lifted its mid-single-digit loan growth guidance, citing the expected portfolio impact from recent acquisitions including Walmart OnePay and Lowe's commercial financing, which are projected to accelerate growth in the second half of 2026.
3. Share Repurchase Program and Basel III Relief
The company launched a $6.5 billion share repurchase program with pacing tied to business performance and regulatory metrics. Under the finalized Basel III standardized approach, Synchrony anticipates 125–150 basis points of risk-weighted asset relief, bolstering capital flexibility.
4. EPS Guidance and Credit Trends
EPS guidance remains set at $9.10 to $9.50, with credit trends outperforming initial expectations on lower net charge-offs. Management highlighted that elevated payment rates reflect higher credit quality and mix shifts, but are not viewed as a permanent reset.