Synchrony Q2 net interest income rises on lower liability costs, higher loan yields

• U.S. consumer finance firm's Q2 net income fell 8% yr/yr to $885 mln
• Q2 net interest income rose 2%, driven by lower funding costs and higher loan yields
• Company cites strong purchase volume growth and disciplined credit management

Result drivers

• Purchase volume growth - Co said record purchase volume and higher spend per account drove results
• Lower funding costs - Net interest income rose, primarily driven by lower interest-bearing liabilities cost and improved loan yields
• Disciplined credit management - Co said lower delinquency and net charge-offs below target range supported results

• Synchrony did not provide specific guidance for the current or upcoming quarter or year in the press release

Analyst coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
• The average consensus recommendation for the consumer lending peer group is "buy"