Synchrony Financial (SYF) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 19, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Synchrony Financial First Quarter 2023 Earnings Conference Call. Please refer to the company's Investor Relations website for access to their earnings materials. Please be advised that today's conference call is being recorded. [Operator Instructions]

I will now turn the call over to Kathryn Miller, Senior Vice President of Investor Relations. Thank you. You may begin.

Kathryn Miller

Thank you, and good morning, everyone. Welcome to our quarterly earnings conference call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address during our call. The press release, detailed financial schedules, and presentation are available on our website, synchronyfinancial.com. This information can be accessed by going to the Investor Relations section of the website.

Before we get started, I wanted to remind you that our comments today will include forward-looking statements. These statements are subject to risks and uncertainty, and actual results could differ materially. We list the factors that might cause actual results to differ materially in our SEC filings, which are available on our website.

During the call, we will refer to non-GAAP financial measures in discussing the company's performance. You can find a reconciliation of these measures to GAAP financial measures in our materials for today's call. Finally, Synchrony Financial is not responsible for and does not edit or guarantee the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized webcasts are located on our website.

On the call this morning are Brian Doubles, Synchrony's President and Chief Executive Officer; and Brian Wenzel, Executive Vice President and Chief Financial Officer.

I will now turn the call over to Brian Doubles.

Brian Doubles

Thanks, Kathryn, and good morning, everyone. Today Synchrony reported strong first quarter results, including net earnings of $601 million or $1.35 per diluted share, a return on average assets of 2.3%, and a return on tangible common equity of 23.2%. Once again, the power of Synchrony's differentiated business model, match with the continued health of the consumers we serve, delivered consistent growth across our diversified set of partners and products.

On a core basis, we opened 5.2 million new accounts, grew average active accounts by 8%, and drove $42 billion in purchase volume, the highest ever for a first quarter. This milestone was achieved with results across each of Synchrony's five platforms, highlighting the strength of our diversified model. Health and wellness purchase volume grew 19% compared to last year, reflecting broad-based growth in active accounts and higher spend per active account.