Cover Document
Cover Document - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36560 | |
Entity Registrant Name | SYNCHRONY FINANCIAL | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0483352 | |
Entity Address, Address Line One | 777 Long Ridge Road | |
Entity Address, City or Town | Stamford, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06902 | |
City Area Code | 203 | |
Local Phone Number | 585-2400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 450,541,428 | |
Entity Central Index Key | 0001601712 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | SYF | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares Each Representing a 1/40th Interest in a Share of 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | SYFPrA | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income: | ||||
Interest and fees on loans (Note 4) | $ 4,258 | $ 3,887 | $ 12,305 | $ 11,186 |
Interest on cash and debt securities | 84 | 11 | 133 | 32 |
Total interest income | 4,342 | 3,898 | 12,438 | 11,218 |
Interest expense: | ||||
Interest on deposits | 280 | 131 | 567 | 447 |
Interest on senior unsecured notes | 80 | 68 | 225 | 226 |
Total interest expense | 414 | 240 | 919 | 809 |
Net interest income | 3,928 | 3,658 | 11,519 | 10,409 |
Retailer share arrangements | (1,057) | (1,266) | (3,288) | (3,261) |
Provision for credit losses (Note 4) | 929 | 25 | 2,174 | 165 |
Net interest income, after retailer share arrangements and provision for credit losses | 1,942 | 2,367 | 6,057 | 6,983 |
Other income: | ||||
Interchange revenue | 238 | 232 | 731 | 626 |
Debt cancellation fees | 103 | 70 | 285 | 205 |
Loyalty programs | (326) | (256) | (906) | (682) |
Other | 29 | 48 | 240 | 165 |
Total other income | 44 | 94 | 350 | 314 |
Other expense: | ||||
Employee costs | 416 | 369 | 1,222 | 1,092 |
Professional fees | 204 | 196 | 599 | 575 |
Marketing and business development | 115 | 110 | 366 | 319 |
Information processing | 150 | 139 | 458 | 407 |
Other | 179 | 147 | 541 | 448 |
Total other expense | 1,064 | 961 | 3,186 | 2,841 |
Earnings before provision for income taxes | 922 | 1,500 | 3,221 | 4,456 |
Provision for income taxes (Note 12) | 219 | 359 | 782 | 1,048 |
Net earnings | 703 | 1,141 | 2,439 | 3,408 |
Net earnings available to common stockholders | $ 692 | $ 1,130 | $ 2,407 | $ 3,376 |
Earnings per share | ||||
Basic (in usd per share) | $ 1.48 | $ 2.02 | $ 4.89 | $ 5.89 |
Diluted (in usd per share) | $ 1.47 | $ 2 | $ 4.86 | $ 5.84 |
Variable Interest Entity, Primary Beneficiary | ||||
Interest income: | ||||
Interest and fees on loans (Note 4) | $ 896 | $ 1,000 | $ 2,700 | $ 3,100 |
Interest expense: | ||||
Interest on borrowings of consolidated securitization entities | 54 | 41 | 127 | 136 |
Provision for credit losses (Note 4) | $ 23 | $ (133) | $ 151 | $ (213) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 703 | $ 1,141 | $ 2,439 | $ 3,408 |
Other comprehensive income (loss) | ||||
Debt securities | (33) | (5) | (110) | (13) |
Currency translation adjustments | (5) | (5) | (9) | (1) |
Employee benefit plans | 0 | 2 | 1 | 1 |
Other comprehensive income (loss) | (38) | (8) | (118) | (13) |
Comprehensive income | $ 665 | $ 1,133 | $ 2,321 | $ 3,395 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and equivalents | $ 11,962 | $ 8,337 | |
Debt securities (Note 3) | 5,082 | 5,283 | |
Less: Allowance for credit losses | (9,102) | (8,688) | |
Loan receivables, net | 76,910 | 72,052 | |
Loan receivables held for sale (Note 4) | 0 | 4,361 | |
Goodwill | 1,105 | 1,105 | |
Intangible assets, net (Note 6) | 1,033 | 1,168 | |
Other assets | 4,674 | 3,442 | |
Total assets | 100,766 | 95,748 | |
Deposits: (Note 7) | |||
Interest-bearing deposit accounts | 68,032 | 61,911 | |
Non-interest-bearing deposit accounts | 372 | 359 | |
Total deposits | 68,404 | 62,270 | |
Borrowings: (Notes 5 and 8) | |||
Senior unsecured notes | 7,961 | 7,219 | |
Total borrowings | [1] | 14,321 | 14,507 |
Accrued expenses and other liabilities | 5,029 | 5,316 | |
Total liabilities | 87,754 | 82,093 | |
Equity: | |||
Preferred stock, par share value $0.001 per share; 750,000 shares authorized; 750,000 shares issued and outstanding at both September 30, 2022 and December 31, 2021 and aggregate liquidation preference of $750 at both September 30, 2022 and December 31, 2021 | 734 | 734 | |
Common Stock, par share value $0.001 per share; 4,000,000,000 shares authorized; 833,984,684 shares issued at both September 30, 2022 and December 31, 2021; 458,904,206 and 526,830,205 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 1 | 1 | |
Additional paid-in capital | 9,685 | 9,669 | |
Retained earnings | 16,252 | 14,245 | |
Accumulated other comprehensive income (loss): | |||
Debt securities | (106) | 4 | |
Currency translation adjustments | (35) | (26) | |
Employee benefit plans | (46) | (47) | |
Treasury stock, at cost; 375,080,478 and 307,154,479 shares at September 30, 2022 and December 31, 2021, respectively | 13,473 | 10,925 | |
Total equity | 13,012 | 13,655 | |
Total liabilities and equity | 100,766 | 95,748 | |
Total loan receivables | 86,012 | 80,740 | |
Restricted loans of consolidated securitization entities | |||
Assets | |||
Less: Allowance for credit losses | (1,700) | (1,900) | |
Loan receivables, net | [2] | 16,629 | 18,594 |
Loan receivables held for sale (Note 4) | 0 | 1,398 | |
Other assets | [3] | 1,031 | 292 |
Total assets | 17,660 | 20,284 | |
Borrowings: (Notes 5 and 8) | |||
Total liabilities | 6,378 | 7,302 | |
Total loan receivables | 18,361 | 20,529 | |
Borrowings of consolidated securitization entities | [1] | 6,360 | 7,288 |
Unsecuritized Loans Held for Investment [Member] | |||
Total loan receivables | $ 67,651 | $ 60,211 | |
[1]The amounts presented above for outstanding borrowings include unamortized debt premiums, discounts and issuance costs.[2]Includes $1.7 billion and $1.9 billion of related allowance for credit losses resulting in gross restricted loans of $18.4 billion and $20.5 billion at September 30, 2022 and December 31, 2021, respectively.[3]Includes $1.0 billion and $288 million of segregated funds held by the VIEs at September 30, 2022 and December 31, 2021, respectively, which are classified as restricted cash and equivalents and included as a component of other assets |
Consolidated Statements of Fina
Consolidated Statements of Financial Position Statement (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 750,000 | 750,000 |
Preferred Stock, Shares Outstanding | 750,000 | 750,000 |
Preferred Stock, Shares Issued | 750,000 | 750,000 |
Preferred Stock, Liquidation Preference, Value | $ 750 | $ 750 |
Common stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 4,000,000,000 | 4,000,000,000 |
Common Stock, Shares, Issued | 833,984,684 | 833,984,684 |
Common Stock, Shares, Outstanding | 458,904,206 | 526,830,205 |
Treasury Stock, Shares | 375,080,478 | 307,154,479 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 750,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 12,701 | $ 734 | $ 1 | $ 9,570 | $ 10,621 | $ (51) | $ (8,174) |
Beginning balance (in shares) at Dec. 31, 2020 | 833,985,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 1,025 | 1,025 | |||||
Other comprehensive income | (5) | (5) | |||||
Purchases of treasury stock | (200) | (200) | |||||
Stock-based compensation (in shares) | 0 | ||||||
Stock-based compensation | $ 57 | 22 | (37) | 72 | |||
Preferred Stock, Dividends Per Share, Declared | $ 14.06 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||||
Dividends - preferred stock | $ (11) | (11) | |||||
Dividends - common stock | (128) | (128) | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2021 | 750,000 | ||||||
Ending balance at Mar. 31, 2021 | 13,439 | $ 734 | $ 1 | 9,592 | 11,470 | (56) | (8,302) |
Ending balance (in shares) at Mar. 31, 2021 | 833,985,000 | ||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 750,000 | ||||||
Beginning balance at Dec. 31, 2020 | 12,701 | $ 734 | $ 1 | 9,570 | 10,621 | (51) | (8,174) |
Beginning balance (in shares) at Dec. 31, 2020 | 833,985,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 3,408 | ||||||
Other comprehensive income | (13) | ||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2021 | 750,000 | ||||||
Ending balance at Sep. 30, 2021 | 13,936 | $ 734 | $ 1 | 9,649 | 13,562 | (64) | (9,946) |
Ending balance (in shares) at Sep. 30, 2021 | 833,985,000 | ||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2021 | 750,000 | ||||||
Beginning balance at Mar. 31, 2021 | 13,439 | $ 734 | $ 1 | 9,592 | 11,470 | (56) | (8,302) |
Beginning balance (in shares) at Mar. 31, 2021 | 833,985,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 1,242 | 1,242 | |||||
Other comprehensive income | 0 | 0 | |||||
Purchases of treasury stock | (393) | (393) | |||||
Stock-based compensation (in shares) | 0 | ||||||
Stock-based compensation | $ 47 | 28 | (14) | 33 | |||
Preferred Stock, Dividends Per Share, Declared | $ 14.06 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||||
Dividends - preferred stock | $ (10) | (10) | |||||
Dividends - common stock | (128) | (128) | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2021 | 750,000 | ||||||
Ending balance at Jun. 30, 2021 | 14,197 | $ 734 | $ 1 | 9,620 | 12,560 | (56) | (8,662) |
Ending balance (in shares) at Jun. 30, 2021 | 833,985,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 1,141 | 1,141 | |||||
Other comprehensive income | (8) | (8) | |||||
Purchases of treasury stock | (1,301) | (1,301) | |||||
Treasury Stock Reissued at Lower than Repurchase Price | (4) | ||||||
Stock-based compensation, treasury stock issued | 17 | ||||||
Stock-based compensation (in shares) | 0 | ||||||
Stock-based compensation | $ 42 | 29 | |||||
Preferred Stock, Dividends Per Share, Declared | $ 14.06 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||||
Dividends - preferred stock | $ (11) | (11) | |||||
Dividends - common stock | (124) | (124) | |||||
Preferred stock, ending balance (in shares) at Sep. 30, 2021 | 750,000 | ||||||
Ending balance at Sep. 30, 2021 | $ 13,936 | $ 734 | $ 1 | 9,649 | 13,562 | (64) | (9,946) |
Ending balance (in shares) at Sep. 30, 2021 | 833,985,000 | ||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 750,000 | 750,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 13,655 | $ 734 | $ 1 | 9,669 | 14,245 | (69) | (10,925) |
Beginning balance (in shares) at Dec. 31, 2021 | 833,984,684 | 833,985,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 932 | 932 | |||||
Other comprehensive income | (52) | (52) | |||||
Purchases of treasury stock | (968) | (968) | |||||
Stock-based compensation (in shares) | 0 | ||||||
Stock-based compensation | $ (25) | (26) | (50) | 51 | |||
Preferred Stock, Dividends Per Share, Declared | $ 14.06 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||||
Dividends - preferred stock | $ (10) | (10) | |||||
Dividends - common stock | (114) | (114) | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2022 | 750,000 | ||||||
Ending balance at Mar. 31, 2022 | $ 13,418 | $ 734 | $ 1 | 9,643 | 15,003 | (121) | (11,842) |
Ending balance (in shares) at Mar. 31, 2022 | 833,985,000 | ||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 750,000 | 750,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 13,655 | $ 734 | $ 1 | 9,669 | 14,245 | (69) | (10,925) |
Beginning balance (in shares) at Dec. 31, 2021 | 833,984,684 | 833,985,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 2,439 | ||||||
Other comprehensive income | $ (118) | ||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2022 | 750,000 | 750,000 | |||||
Ending balance at Sep. 30, 2022 | $ 13,012 | $ 734 | $ 1 | 9,685 | 16,252 | (187) | (13,473) |
Ending balance (in shares) at Sep. 30, 2022 | 833,984,684 | 833,985,000 | |||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2022 | 750,000 | ||||||
Beginning balance at Mar. 31, 2022 | $ 13,418 | $ 734 | $ 1 | 9,643 | 15,003 | (121) | (11,842) |
Beginning balance (in shares) at Mar. 31, 2022 | 833,985,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 804 | 804 | |||||
Other comprehensive income | (28) | (28) | |||||
Purchases of treasury stock | (701) | (701) | |||||
Stock-based compensation (in shares) | 0 | ||||||
Stock-based compensation | $ 19 | 20 | (9) | 8 | |||
Preferred Stock, Dividends Per Share, Declared | $ 14.06 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||||
Dividends - preferred stock | $ (11) | (11) | |||||
Dividends - common stock | (108) | (108) | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2022 | 750,000 | ||||||
Ending balance at Jun. 30, 2022 | 13,393 | $ 734 | $ 1 | 9,663 | 15,679 | (149) | (12,535) |
Ending balance (in shares) at Jun. 30, 2022 | 833,985,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 703 | 703 | |||||
Other comprehensive income | (38) | (38) | |||||
Purchases of treasury stock | (951) | (951) | |||||
Treasury Stock Reissued at Lower than Repurchase Price | (10) | ||||||
Stock-based compensation, treasury stock issued | 13 | ||||||
Stock-based compensation (in shares) | 0 | ||||||
Stock-based compensation | $ 25 | 22 | |||||
Preferred Stock, Dividends Per Share, Declared | $ 14.06 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.23 | ||||||
Dividends - preferred stock | $ (11) | (11) | |||||
Dividends - common stock | $ (109) | (109) | |||||
Preferred stock, ending balance (in shares) at Sep. 30, 2022 | 750,000 | 750,000 | |||||
Ending balance at Sep. 30, 2022 | $ 13,012 | $ 734 | $ 1 | $ 9,685 | $ 16,252 | $ (187) | $ (13,473) |
Ending balance (in shares) at Sep. 30, 2022 | 833,984,684 | 833,985,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows - operating activities | ||
Net earnings | $ 2,439 | $ 3,408 |
Adjustments to reconcile net earnings to cash provided from operating activities | ||
Provision for credit losses | 2,174 | 165 |
Deferred income taxes | (185) | 230 |
Depreciation and amortization | 318 | 285 |
(Increase) decrease in interest and fees receivable | 74 | 579 |
(Increase) decrease in other assets | (26) | (79) |
Increase (decrease) in accrued expenses and other liabilities | (322) | 88 |
All other operating activities | 375 | 419 |
Cash provided from (used for) operating activities | 4,847 | 5,095 |
Cash flows - investing activities | ||
Maturity and sales of debt securities | 3,659 | 4,249 |
Purchases of debt securities | (3,624) | (2,290) |
Proceeds from sale of loan receivables | 3,930 | 23 |
Net (increase) decrease in loan receivables, including held for sale | (6,999) | (610) |
All other investing activities | (342) | (422) |
Cash provided from (used for) investing activities | (3,376) | 950 |
Borrowings of consolidated securitization entities | ||
Proceeds from issuance of securitized debt | 1,670 | 1,350 |
Maturities and repayment of securitized debt | (2,600) | (2,875) |
Senior unsecured notes | ||
Proceeds from issuance of senior unsecured notes | 2,235 | 0 |
Maturities and repayment of senior unsecured notes | (1,500) | (1,500) |
Dividends paid on preferred stock | (32) | (32) |
Net increase (decrease) in deposits | 6,125 | (2,447) |
Purchases of treasury stock | (2,619) | (1,894) |
Dividends paid on common stock | (331) | (380) |
All other financing activities | (44) | 28 |
Cash provided from (used for) financing activities | 2,904 | (7,750) |
Increase (decrease) in cash and equivalents, including restricted amounts | 4,375 | (1,705) |
Cash and equivalents, including restricted amounts, at beginning of period | 8,686 | 11,605 |
Cash and equivalents | 11,962 | 9,806 |
Restricted cash and equivalents included in other assets | 1,099 | 94 |
Total cash and equivalents, including restricted amounts, at end of period | $ 13,061 | $ 9,900 |
Business Description
Business Description | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | BUSINESS DESCRIPTION Synchrony Financial (the “Company”) provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. We primarily offer private label, Dual Card, co-brand and general purpose credit cards, as well as short- and long-term installment loans, and savings products insured by the Federal Deposit Insurance Corporation (“FDIC”) through Synchrony Bank (the “Bank”). References to the “Company”, “we”, “us” and “our” are to Synchrony Financial and its consolidated subsidiaries unless the context otherwise requires. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions (for example, unemployment, housing, interest rates and market liquidity) which affect reported amounts and related disclosures in our condensed consolidated financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in incremental losses on loan receivables, future impairments of debt securities, goodwill and intangible assets, increases in reserves for contingencies, establishment of valuation allowances on deferred tax assets and increases in our tax liabilities. We primarily conduct our business within the United States and Canada and substantially all of our revenues are from U.S. customers. The operating activities conducted by our non-U.S. affiliates use the local currency as their functional currency. The effects of translating the financial statements of these non-U.S. affiliates to U.S. dollars are included in equity. Asset and liability accounts are translated at period-end exchange rates, while revenues and expenses are translated at average rates for the respective periods. Consolidated Basis of Presentation The Company’s financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries – i.e., entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (“power”) combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses (“significant economics”), we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. We consolidate certain securitization entities under the VIE model because we have both power and significant economics. See Note 5. Variable Interest Entities . Interim Period Presentation The condensed consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these condensed consolidated financial statements should not be considered as necessarily indicative of results that may be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with our 2021 annual consolidated financial statements and the related notes in our Annual Report on Form 10-K for the year ended December 31, 2021 (our "2021 Form 10-K"). New Accounting Standards Recently Issued But Not Yet Adopted Accounting Standards In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the separate recognition and measurement guidance for Troubled Debt Restructurings ("TDRs") by creditors. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. This guidance is effective for the Company on January 1, 2023, with early adoption permitted. The Company is currently assessing the impacts of the guidance and plans to adopt the guidance on January 1, 2023 on a modified retrospective basis. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2021 annual consolidated financial statements in our 2021 Form 10-K, for additional information on our other significant accounting policies. |
Debt Securities
Debt Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | DEBT SECURITIES All of our debt securities are classified as available-for-sale and are held to meet our liquidity objectives or to comply with the Community Reinvestment Act (“CRA”). Our debt securities consist of the following: September 30, 2022 December 31, 2021 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated ($ in millions) cost gains losses fair value cost gains losses fair value U.S. government and federal agency $ 3,763 $ — $ (61) $ 3,702 $ 2,222 $ — $ (2) $ 2,220 State and municipal 10 — — 10 13 — — 13 Residential mortgage-backed (a) 490 — (54) 436 597 12 (3) 606 Asset-backed (b) 951 — (24) 927 2,432 2 (4) 2,430 Other 8 — (1) 7 13 1 — 14 Total $ 5,222 $ — $ (140) $ 5,082 $ 5,277 $ 15 $ (9) $ 5,283 _______________________ (a) All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. At September 30, 2022 and December 31, 2021, $102 million and $145 million of residential mortgage-backed securities, respectively, are pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve Discount Window advances. (b) Our asset-backed securities are collateralized by credit card and auto loans. The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities: In loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized ($ in millions) fair value losses fair value losses At September 30, 2022 U.S. government and federal agency $ 3,405 $ (55) $ 297 $ (6) State and municipal 7 — 3 — Residential mortgage-backed 337 (35) 98 (19) Asset-backed 432 (10) 382 (14) Other 7 (1) — — Total $ 4,188 $ (101) $ 780 $ (39) At December 31, 2021 U.S. government and federal agency $ 563 $ (2) $ — $ — State and municipal 4 — — — Residential mortgage-backed 105 (2) 27 (1) Asset-backed 1,653 (4) — — Total $ 2,325 $ (8) $ 27 $ (1) We regularly review debt securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period. We presently do not intend to sell our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost. Contractual Maturities of Investments in Available-for-Sale Debt Securities Amortized Estimated Weighted At September 30, 2022 ($ in millions) cost fair value Average yield (a) Due Within one year $ 3,466 $ 3,442 2.2 % After one year through five years $ 1,640 $ 1,542 1.1 % After five years through ten years $ 90 $ 76 1.9 % After ten years $ 26 $ 22 2.8 % _____________________ (a) Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations. We expect actual maturities to differ from contractual maturities because borrowers have the right to prepay certain obligations. There were no material realized gains or losses recognized for the nine months ended September 30, 2022 and 2021. |
Loan Receivables and Allowance
Loan Receivables and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loan Receivables and Allowance for Credit Losses | LOAN RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES ($ in millions) September 30, 2022 December 31, 2021 Credit cards $ 81,254 $ 76,628 Consumer installment loans 2,945 2,675 Commercial credit products 1,723 1,372 Other 90 65 Total loan receivables, before allowance for credit losses (a)(b) $ 86,012 $ 80,740 _______________________ (a) Total loan receivables include $18.4 billion and $20.5 billion of restricted loans of consolidated securitization entities at September 30, 2022 and December 31, 2021, respectively. See Note 5. Variable Interest Entities for further information on these restricted loans. (b) At September 30, 2022 and December 31, 2021, loan receivables included deferred costs, net of deferred income, of $213 million and $211 million, respectively. Disposition of Loan Receivables During the second quarter of 2022, we completed the sales of a total of $3.8 billion of loan receivables associated with our program agreements with Gap Inc. and BP. The total proceeds received from the dispositions were $3.9 billion and we recognized a gain on sale of $120 million included within other income in our condensed consolidated statement of earnings. Allowance for Credit Losses ($ in millions) Balance at July 1, 2022 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 8,605 $ 864 $ (785) $ 189 $ — $ 8,873 Consumer installment loans 129 38 (25) 4 — 146 Commercial credit products 71 26 (19) 2 — 80 Other 3 1 (1) — — 3 Total $ 8,808 $ 929 $ (830) $ 195 $ — $ 9,102 ($ in millions) Balance at July 1, 2021 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 8,904 $ (22) $ (625) $ 208 $ — $ 8,465 Consumer installment loans 67 37 (11) 4 — 97 Commercial credit products 50 10 (8) 1 — 53 Other 2 — (1) — — 1 Total $ 9,023 $ 25 $ (645) $ 213 $ — $ 8,616 ($ in millions) Balance at January 1, 2022 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 8,512 $ 2,028 $ (2,273) $ 606 $ — $ 8,873 Consumer installment loans 115 80 (63) 14 — 146 Commercial credit products 59 64 (48) 5 — 80 Other 2 2 (1) — — 3 Total $ 8,688 $ 2,174 $ (2,385) $ 625 $ — $ 9,102 ($ in millions) Balance at January 1, 2021 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 10,076 $ 156 $ (2,407) $ 640 $ — $ 8,465 Consumer installment loans 127 (7) (38) 14 1 97 Commercial credit products 61 15 (27) 4 — 53 Other 1 1 (1) — — 1 Total $ 10,265 $ 165 $ (2,473) $ 658 $ 1 $ 8,616 Our allowance for credit losses at September 30, 2022 and December 31, 2021 reflects our estimate of expected credit losses for the life of the loan receivables on our consolidated statement of financial position. The reasonable and supportable forecast period used in our estimate of credit losses at September 30, 2022 was 12 months, consistent with the forecast period utilized since the adoption of CECL. Beyond the reasonable and supportable forecast period, we revert to historical loss information at the loan receivables segment level over a 6-month period, gradually increasing the weight of historical losses by an equal amount each month during the reversion period, and utilize historical loss information thereafter for the remaining life of the portfolio. The reversion period and methodology remain unchanged since the adoption of CECL. Losses on loan receivables are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance at September 30, 2022. Expected credit loss estimates are developed using both quantitative models and qualitative adjustments, and incorporates a macroeconomic forecast, as described within the 2021 Form 10-K. The current and forecasted economic conditions at the balance sheet date influenced our current estimate of expected credit losses. These conditions are relatively consistent as compared to December 31, 2021, reflecting continued elevated trends in customer payment behavior, and an uncertain macroeconomic environment. Our allowance for credit losses increased to $9.1 billion during the nine months ended September 30, 2022 primarily due to growth in loan receivables. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2021 annual consolidated financial statements in our 2021 Form 10-K, for additional information on our significant accounting policies related to our allowance for credit losses. Delinquent and Non-accrual Loans At September 30, 2022 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 1,500 $ 1,200 $ 2,700 $ 1,200 $ — Consumer installment loans 47 10 57 — 10 Commercial credit products 39 22 61 22 — Total delinquent loans $ 1,586 $ 1,232 $ 2,818 $ 1,222 $ 10 Percentage of total loan receivables 1.8 % 1.4 % 3.3 % 1.4 % — % At December 31, 2021 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 1,111 $ 923 $ 2,034 $ 923 $ — Consumer installment loans 35 6 41 — 6 Commercial credit products 26 13 39 13 — Total delinquent loans $ 1,172 $ 942 $ 2,114 $ 936 $ 6 Percentage of total loan receivables 1.5 % 1.2 % 2.6 % 1.2 % — % Delinquency trends are the primary credit quality indicator for our consumer installment loans, which we use to monitor credit quality and risk within the portfolio. Total consumer installment past due of $57 million and $41 million at September 30, 2022 and December 31, 2021, respectively, were not material. Troubled Debt Restructurings We use certain loan modification programs for borrowers experiencing financial difficulties. These loan modification programs include interest rate reductions and payment deferrals in excess of three months, which were not part of the terms of the original contract. Our TDR loans do not include loans that are classified as loan receivables held for sale. We have both internal and external loan modification programs. We use long-term modification programs for borrowers experiencing financial difficulty as a loss mitigation strategy to improve long-term collectability of the loans that are classified as TDRs. The long-term program involves changing the structure of the loan to a fixed payment loan with a maturity no longer than 60 months and reducing the interest rate on the loan. The long-term program does not normally provide for the forgiveness of unpaid principal but may allow for the reversal of certain unpaid interest or fee assessments. We also make loan modifications for customers who request financial assistance through external sources, such as consumer credit counseling agency programs. These loans typically receive a reduced interest rate but continue to be subject to the original minimum payment terms and do not normally include waiver of unpaid principal, interest or fees. The following table provides information on our TDR loan modifications during the periods presented: Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Credit cards $ 265 $ 149 $ 681 $ 564 Consumer installment loans — — — — Commercial credit products 1 1 2 2 Total $ 266 $ 150 $ 683 $ 566 Our allowance for credit losses on TDRs is generally measured based on the difference between the recorded loan receivable and the present value of the expected future cash flows, discounted at the original effective interest rate of the loan. Interest income from loans accounted for as TDRs is accounted for in the same manner as other accruing loans. The following table provides information about loans classified as TDRs and specific reserves. We do not evaluate credit card loans on an individual basis but instead estimate an allowance for credit losses on a collective basis. At September 30, 2022 ($ in millions) Total recorded Related allowance Net recorded investment Unpaid principal balance Credit cards $ 1,255 $ (512) $ 743 $ 1,122 Consumer installment loans — — — — Commercial credit products 3 (1) 2 3 Total $ 1,258 $ (513) $ 745 $ 1,125 At December 31, 2021 ($ in millions) Total recorded Related allowance Net recorded investment Unpaid principal balance Credit cards $ 1,171 $ (481) $ 690 $ 1,053 Consumer installment loans — — — — Commercial credit products 3 (1) 2 3 Total $ 1,174 $ (482) $ 692 $ 1,056 Financial Effects of TDRs As part of our loan modifications for borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. The following table presents the types and financial effects of loans modified and accounted for as TDRs during the periods presented: Three months ended September 30, 2022 2021 ($ in millions) Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Credit cards $ 9 $ 80 $ 1,218 $ 11 $ 79 $ 1,196 Consumer installment loans — — — — — — Commercial credit products — 1 4 — 1 4 Total $ 9 $ 81 $ 1,222 $ 11 $ 80 $ 1,200 Nine months ended September 30, 2022 2021 ($ in millions) Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Credit cards $ 26 $ 234 $ 1,201 $ 30 $ 235 $ 1,235 Consumer installment loans — — — — — — Commercial credit products — 1 3 — 1 4 Total $ 26 $ 235 $ 1,204 $ 30 $ 236 $ 1,239 Payment Defaults The following table presents the type, number and amount of loans accounted for as TDRs that enrolled in a modification plan within the previous 12 months from the applicable balance sheet date and experienced a payment default and charged-off during the periods presented. Three months ended September 30, 2022 2021 ($ in millions) Accounts defaulted Loans defaulted Accounts defaulted Loans defaulted Credit cards 25,288 $ 56 18,082 $ 48 Consumer installment loans — — — — Commercial credit products 51 — 42 — Total 25,339 $ 56 18,124 $ 48 Nine months ended September 30, 2022 2021 ($ in millions) Accounts defaulted Loans defaulted Accounts defaulted Loans defaulted Credit cards 51,944 $ 116 43,897 $ 114 Consumer installment loans — — — — Commercial credit products 104 1 100 1 Total 52,048 $ 117 43,997 $ 115 Credit Quality Indicators Our loan receivables portfolio includes both secured and unsecured loans. Secured loan receivables are largely comprised of consumer installment loans secured by equipment. Unsecured loan receivables are largely comprised of our open-ended consumer and commercial revolving credit card loans. As part of our credit risk management activities, on an ongoing basis, we assess overall credit quality by reviewing information related to the performance of a customer’s account with us, including delinquency information, as well as information from credit bureaus relating to the customer’s broader credit performance. We utilize VantageScore credit scores to assist in our assessment of credit quality. VantageScore credit scores are obtained at origination of the account and are refreshed, at a minimum quarterly, but could be as often as weekly, to assist in predicting customer behavior. We categorize these credit scores into the following three credit score categories: (i) 651 or higher, which are considered the strongest credits; (ii) 591 to 650, considered moderate credit risk; and (iii) 590 or less, which are considered weaker credits. There are certain customer accounts for which a VantageScore score is not available where we use alternative sources to assess their credit and predict behavior. The following table provides the most recent VantageScore scores available for our customers at September 30, 2022, December 31, 2021 and September 30, 2021, respectively, as a percentage of each class of loan receivable. The table below excludes 0.4%, 0.4% and 0.4% of our total loan receivables balance at each of September 30, 2022, December 31, 2021 and September 30, 2021, respectively, which represents those customer accounts for which a VantageScore score is not available. September 30, 2022 December 31, 2021 September 30, 2021 651 or 591 to 590 or 651 or 591 to 590 or 651 or 591 to 590 or higher 650 less higher 650 less higher 650 less Credit cards 75 % 18 % 7 % 78 % 17 % 5 % 79 % 17 % 4 % Consumer installment loans 77 % 17 % 6 % 79 % 17 % 4 % 80 % 16 % 4 % Commercial credit products 90 % 6 % 4 % 92 % 5 % 3 % 93 % 4 % 3 % Unfunded Lending Commitments We manage the potential risk in credit commitments by limiting the total amount of credit, both by individual customer and in total, by monitoring the size and maturity of our portfolios and by applying the same credit standards for all of our credit products. Unused credit card lines available to our customers totaled approximately $413 billion and $431 billion at September 30, 2022 and December 31, 2021, respectively. The decrease as compared to December 31, 2021 reflects the impact from the portfolio sales completed in the second quarter of 2022. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Interest Income by Product The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale: Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Credit cards (a) $ 4,153 $ 3,793 $ 12,009 $ 10,934 Consumer installment loans 74 64 209 176 Commercial credit products 30 29 83 73 Other 1 1 4 3 Total $ 4,258 $ 3,887 $ 12,305 $ 11,186 _______________________ (a) Interest income on credit cards that was reversed related to accrued interest receivables written off was $265 million and $199 million for the three months ended September 30, 2022 and 2021, respectively, and $770 million and $800 million for the nine months ended September 30, 2022 and 2021, respectively. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES We use VIEs to securitize loan receivables and arrange asset-backed financing in the ordinary course of business. Investors in these entities only have recourse to the assets owned by the entity and not to our general credit. We do not have implicit support arrangements with any VIE and we did not provide non-contractual support for previously transferred loan receivables to any of these VIEs in the three and nine months ended September 30, 2022 and 2021. Our VIEs are able to accept new loan receivables and arrange new asset-backed financings, consistent with the requirements and limitations on such activities placed on the VIE by existing investors. Once an account has been designated to a VIE, the contractual arrangements we have require all existing and future loan receivables originated under such account to be transferred to the VIE. The amount of loan receivables held by our VIEs in excess of the minimum amount required under the asset-backed financing arrangements with investors may be removed by us under removal of accounts provisions. All loan receivables held by a VIE are subject to claims of third-party investors. In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance as compared to other economic interest holders. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important. In determining whether we have the right to receive benefits or the obligation to absorb losses that could potentially be significant to a VIE, we evaluate all of our economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity’s design, including: the entity’s capital structure, contractual rights to earnings or losses, subordination of our interests relative to those of other investors, as well as any other contractual arrangements that might exist that could have the potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of our economic interests is a matter that requires the exercise of professional judgment. We consolidate VIEs where we have the power to direct the activities that significantly affect the VIEs' economic performance, typically because of our role as either servicer or administrator for the VIEs. The power to direct exists because of our role in the design and conduct of the servicing of the VIEs’ assets as well as directing certain affairs of the VIEs, including determining whether and on what terms debt of the VIEs will be issued. The loan receivables in these entities have risks and characteristics similar to our other financing receivables and were underwritten to the same standard. Accordingly, the performance of these assets has been similar to our other comparable loan receivables, and the blended performance of the pools of receivables in these entities reflects the eligibility criteria that we apply to determine which receivables are selected for transfer. Contractually, the cash flows from these financing receivables must first be used to pay third-party debt holders, as well as other expenses of the entity. Excess cash flows, if any, are available to us. The creditors of these entities have no claim on our other assets. The table below summarizes the assets and liabilities of our consolidated securitization VIEs described above: ($ in millions) September 30, 2022 December 31, 2021 Assets Loan receivables, net (a) $ 16,629 $ 18,594 Loan receivables held for sale — 1,398 Other assets (b) 1,031 292 Total $ 17,660 $ 20,284 Liabilities Borrowings $ 6,360 $ 7,288 Other liabilities 18 14 Total $ 6,378 $ 7,302 _______________________ (a) Includes $1.7 billion and $1.9 billion of related allowance for credit losses resulting in gross restricted loans of $18.4 billion and $20.5 billion at September 30, 2022 and December 31, 2021, respectively. (b) Includes $1.0 billion and $288 million of segregated funds held by the VIEs at September 30, 2022 and December 31, 2021, respectively, which are classified as restricted cash and equivalents and included as a component of other assets The balances presented above are net of intercompany balances and transactions that are eliminated in our condensed consolidated financial statements. We provide servicing for all of our consolidated VIEs. Collections are required to be placed into segregated accounts owned by each VIE in amounts that meet contractually specified minimum levels. These segregated funds are invested in cash and cash equivalents and are restricted as to their use, principally to pay maturing principal and interest on debt and the related servicing fees. Collections above these minimum levels are remitted to us on a daily basis. Income (principally, interest and fees on loans) earned by our consolidated VIEs was $896 million and $1.0 billion for the three months ended September 30, 2022 and 2021, respectively. Related expenses consisted primarily of provision for credit losses of $23 million and $(133) million for the three months ended September 30, 2022 and 2021, respectively, and interest expense of $54 million and $41 million for the three months ended September 30, 2022 and 2021, respectively. Income (principally, interest and fees on loans) earned by our consolidated VIEs was $2.7 billion and $3.1 billion for the nine months ended September 30, 2022 and 2021, respectively. Related expenses consisted primarily of provision for credit losses of $151 million and $(213) million for the nine months ended September 30, 2022 and 2021, respectively, and interest expense of $127 million and $136 million for the nine months ended September 30, 2022 and 2021, respectively. These amounts do not include intercompany transactions, principally fees and interest, which are eliminated in our condensed consolidated financial statements. Non-consolidated VIEs As part of our community reinvestment initiatives, we invest in affordable housing properties and receive affordable housing tax credits for these investments. These investments included in our Condensed Consolidated Statement of Financial Position totaled $519 million and $441 million at September 30, 2022 and December 31, 2021, respectively, and represents our total exposure for these entities. Additionally, we have other investments in non-consolidated VIEs which totaled $218 million and $184 million at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022, the Company also had investment commitments of $200 million related to these investment s. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS September 30, 2022 December 31, 2021 ($ in millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related $ 1,622 $ (1,088) $ 534 $ 1,797 $ (1,222) $ 575 Capitalized software and other 1,491 (992) 499 1,407 (814) 593 Total $ 3,113 $ (2,080) $ 1,033 $ 3,204 $ (2,036) $ 1,168 During the nine months ended September 30, 2022, we recorded additions to intangible assets subject to amortization of $158 million, primarily related to capitalized software expenditures, as well as customer-related intangible assets. Customer-related intangible assets primarily relate to retail partner contract acquisitions and extensions, as well as purchased credit card relationships. During the nine months ended September 30, 2022 and 2021, we recorded additions to customer-related intangible assets subject to amortization of $55 million and $64 million, respectively, primarily related to payments made to acquire and extend certain retail partner relationships. These additions had a weighted average amortizable life of 6 years and 5 years for the nine months ended September 30, 2022 and 2021, respectively. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
Deposits | DEPOSITS September 30, 2022 December 31, 2021 ($ in millions) Amount Average rate (a) Amount Average rate (a) Interest-bearing deposits $ 68,032 1.2 % $ 61,911 0.9 % Non-interest-bearing deposits 372 — 359 — Total deposits $ 68,404 $ 62,270 ____________________ (a) Based on interest expense for the nine months ended September 30, 2022 and the year ended December 31, 2021 and average deposits balances. At September 30, 2022 and December 31, 2021, interest-bearing deposits included $6.1 billion and $5.0 billion, respectively, of certificates of deposit that exceeded applicable FDIC insurance limits, which are generally $250,000 per depositor. At September 30, 2022, our interest-bearing time deposits maturing for the remainder of 2022 and over the next four years and thereafter were as follows: ($ in millions) 2022 2023 2024 2025 2026 Thereafter Deposits $ 3,690 $ 17,931 $ 6,000 $ 1,876 $ 635 $ 1,579 The above maturity table excludes $31.1 billion of demand deposits with no defined maturity, of which $28.6 billion are savings accounts. In addition, at September 30, 2022, we had $5.2 billion of broker network deposit sweeps procured through a program arranger who channels brokerage account deposits to us that are also excluded from the above maturity table. Unless extended, the contracts associated with these broker network deposit sweeps will terminate between 2023 and 2026. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS September 30, 2022 December 31, 2021 ($ in millions) Maturity date Interest Rate Weighted average interest rate Outstanding Amount (a) Outstanding Amount (a) Borrowings of consolidated securitization entities: Fixed securitized borrowings 2022 - 2025 2.62% - 3.87% 3.31 % $ 3,260 $ 3,188 Floating securitized borrowings 2023 - 2025 3.48% - 3.79% 3.60 % 3,100 4,100 Total borrowings of consolidated securitization entities 3.45 % 6,360 7,288 Senior unsecured notes: Synchrony Financial senior unsecured notes: Fixed senior unsecured notes 2024 - 2031 2.87% - 5.15% 4.22 % 6,471 6,470 Synchrony Bank senior unsecured notes: Fixed senior unsecured notes 2025 - 2027 5.40% - 5.63% 5.49 % 1,490 749 Total senior unsecured notes 4.45 % 7,961 7,219 Total borrowings $ 14,321 $ 14,507 ___________________ (a) The amounts presented above for outstanding borrowings include unamortized debt premiums, discounts and issuance costs. Debt Maturities The following table summarizes the maturities of the principal amount of our borrowings of consolidated securitization entities and senior unsecured notes for the remainder of 2022 and over the next four years and thereafter: ($ in millions) 2022 2023 2024 2025 2026 Thereafter Borrowings $ 883 $ 2,007 $ 3,150 $ 4,825 $ 500 $ 3,000 Third-Party Debt 2022 Issuance ($ in millions ): Issuance Date Principal Amount Maturity Interest Rate Synchrony Financial June 2022 $ 750 June 2025 4.875% Synchrony Bank August 2022 $ 900 August 2025 5.400% August 2022 $ 600 August 2027 5.625% Credit Facilities As additional sources of liquidity, we have undrawn committed capacity under certain credit facilities, primarily related to our securitization programs. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS For a description of how we estimate fair value, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies in our 2021 annual consolidated financial statements in our 2021 Form 10-K. The following tables present our assets and liabilities measured at fair value on a recurring basis. Recurring Fair Value Measurements At September 30, 2022 ($ in millions) Level 1 Level 2 Level 3 Total (a) Assets Debt securities U.S. government and federal agency $ — $ 3,702 $ — $ 3,702 State and municipal — — 10 10 Residential mortgage-backed — 436 — 436 Asset-backed — 927 — 927 Other — — 7 7 Other (b) 14 — 15 29 Total $ 14 $ 5,065 $ 32 $ 5,111 Liabilities Other (c) — — 8 8 Total $ — $ — $ 8 $ 8 At December 31, 2021 ($ in millions) Assets Debt securities U.S. government and federal agency $ — $ 2,220 $ — $ 2,220 State and municipal — — 13 13 Residential mortgage-backed — 606 — 606 Asset-backed — 2,430 — 2,430 Other — — 14 14 Other (b) 15 — 34 49 Total $ 15 $ 5,256 $ 61 $ 5,332 Liabilities Other (c) — — 14 14 Total $ — $ — $ 14 $ 14 _______________________ (a) For the nine months ended September 30, 2022 and 2021, there were no fair value measurements transferred between levels. (b) Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Statement of Financial Position, as well as certain financial assets for which we have elected the fair value option which are included in Loan receivables in our Statement of Financial Position. (c) Other is primarily comprised of certain financial liabilities for which we have elected the fair value option, which are included in Accrued expenses and other liabilities in our Statement of Financial Position. Level 3 Fair Value Measurements Our Level 3 recurring fair value measurements primarily relate to state and municipal and corporate debt instruments, which are valued using non-binding broker quotes or other third-party sources, and financial assets and liabilities for which we have elected the fair value option. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies and Note 9. Fair Value Measurements in our 2021 annual consolidated financial statements in our 2021 Form 10-K for a description of our process to evaluate third-party pricing servicers. Our state and municipal debt securities are classified as available-for-sale with changes in fair value included in accumulated other comprehensive income. The changes in our Level 3 assets and liabilities that are measured on a recurring basis for the three and nine months ended September 30, 2022 and 2021, respectively, were not material. Financial Assets and Financial Liabilities Carried at Other Than Fair Value Carrying Corresponding fair value amount At September 30, 2022 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 11,962 $ 11,962 $ 11,962 $ — $ — Other assets (a)(b) $ 1,099 $ 1,099 $ 1,099 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (c) $ 76,895 $ 87,914 $ — $ — $ 87,914 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 68,404 $ 67,419 $ — $ 67,419 $ — Borrowings of consolidated securitization entities $ 6,360 $ 6,245 $ — $ 3,187 $ 3,058 Senior unsecured notes $ 7,961 $ 7,396 $ — $ 7,396 $ — Carrying Corresponding fair value amount At December 31, 2021 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 8,337 $ 8,337 $ 8,337 $ — $ — Other assets (a)(b) $ 349 $ 349 $ 349 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (c) $ 72,034 $ 84,483 $ — $ — $ 84,483 Loan receivables held for sale (c) $ 4,361 $ 4,499 $ — $ — $ 4,499 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 62,270 $ 62,486 $ — $ 62,486 $ — Borrowings of consolidated securitization entities $ 7,288 $ 7,359 $ — $ 3,238 $ 4,121 Senior unsecured notes $ 7,219 $ 7,662 $ — $ 7,662 $ — _______________________ (a) For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments. (b) This balance relates to restricted cash and equivalents, which is included in other assets. |
Regulatory and Capital Adequacy
Regulatory and Capital Adequacy | 9 Months Ended |
Sep. 30, 2022 | |
Banking Regulation, Risk-Based Information [Abstract] | |
Regulatory and Capital Adequacy | REGULATORY AND CAPITAL ADEQUACY As a savings and loan holding company and a financial holding company, we are subject to regulation, supervision and examination by the Federal Reserve Board and subject to the capital requirements as prescribed by Basel III capital rules and the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Bank is a federally chartered savings association. As such, the Bank is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency of the U.S. Treasury (the “OCC”), which is its primary regulator, and by the Consumer Financial Protection Bureau (“CFPB”). In addition, the Bank, as an insured depository institution, is supervised by the FDIC. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could limit our business activities and have a material adverse effect on our consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require us and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). For Synchrony Financial to be a well-capitalized savings and loan holding company, the Bank must be well-capitalized and Synchrony Financial must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board to meet and maintain a specific capital level for any capital measure. The Company elected to adopt the option provided by the interim final rule issued by joint federal bank regulatory agencies, which largely delayed the effects of CECL on its regulatory capital through December 31, 2021. Beginning in the first quarter of 2022, the effects are now being phased-in over a three-year period through 2024 and effects fully phased-in beginning in the first quarter of 2025. Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period included both the initial impact of our adoption of CECL at January 1, 2020 and 25% of subsequent changes in our allowance for credit losses during the two-year period ended December 31, 2021, collectively the “CECL regulatory capital transition adjustment”. In 2022, only 75% of the CECL regulatory capital transition adjustment is now deferred in our regulatory capital amounts and ratios. At September 30, 2022 and December 31, 2021, Synchrony Financial met all applicable requirements to be deemed well-capitalized pursuant to Federal Reserve Board regulations. At September 30, 2022 and December 31, 2021, the Bank also met all applicable requirements to be deemed well-capitalized pursuant to OCC regulations and for purposes of the Federal Deposit Insurance Act. There are no conditions or events subsequent to September 30, 2022 that management believes have changed the Company's or the Bank’s capital category. The actual capital amounts, ratios and the applicable required minimums of the Company and the Bank are as follows: Synchrony Financial At September 30, 2022 ($ in millions) Actual Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 14,154 16.5 % $ 6,853 8.0 % Tier 1 risk-based capital $ 13,012 15.2 % $ 5,140 6.0 % Tier 1 leverage $ 13,012 13.2 % $ 3,945 4.0 % Common equity Tier 1 Capital $ 12,278 14.3 % $ 3,855 4.5 % At December 31, 2021 ($ in millions) Actual Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 15,122 17.8 % $ 6,796 8.0 % Tier 1 risk-based capital $ 14,003 16.5 % $ 5,097 6.0 % Tier 1 leverage $ 14,003 14.7 % $ 3,800 4.0 % Common equity Tier 1 Capital $ 13,269 15.6 % $ 3,822 4.5 % Synchrony Bank At September 30, 2022 ($ in millions) Actual Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 13,414 16.9 % $ 6,350 8.0 % $ 7,937 10.0 % Tier 1 risk-based capital $ 12,356 15.6 % $ 4,762 6.0 % $ 6,350 8.0 % Tier 1 leverage $ 12,356 13.6 % $ 3,638 4.0 % $ 4,548 5.0 % Common equity Tier I capital $ 12,356 15.6 % $ 3,572 4.5 % $ 5,159 6.5 % At December 31, 2021 ($ in millions) Actual Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 14,091 18.3 % $ 6,175 8.0 % $ 7,718 10.0 % Tier 1 risk-based capital $ 13,075 16.9 % $ 4,631 6.0 % $ 6,175 8.0 % Tier 1 leverage $ 13,075 15.1 % $ 3,455 4.0 % $ 4,318 5.0 % Common equity Tier I capital $ 13,075 16.9 % $ 3,473 4.5 % $ 5,017 6.5 % _______________________ (a) Capital ratios are calculated based on the Basel III Standardized Approach rules. Capital amounts and ratios at September 30, 2022 and at December 31, 2021 in the above tables reflect the applicable CECL regulatory capital transition adjustment. (b) At September 30, 2022 and at December 31, 2021, Synchrony Financial and the Bank also must maintain a capital conservation buffer of common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all dilutive securities. The following table presents the calculation of basic and diluted earnings per common share: Three months ended September 30, Nine months ended September 30, (in millions, except per share data) 2022 2021 2022 2021 Net earnings $ 703 $ 1,141 $ 2,439 $ 3,408 Preferred stock dividends (11) (11) $ (32) $ (32) Net earnings available to common stockholders $ 692 $ 1,130 $ 2,407 $ 3,376 Weighted average common shares outstanding, basic 468.5 560.6 492.1 $ 573.6 Effect of dilutive securities 2.2 5.0 2.9 $ 4.6 Weighted average common shares outstanding, dilutive 470.7 565.6 $ 495.0 $ 578.2 Earnings per basic common share $ 1.48 $ 2.02 $ 4.89 $ 5.89 Earnings per diluted common share $ 1.47 $ 2.00 $ 4.86 $ 5.84 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Unrecognized Tax Benefits ($ in millions) September 30, 2022 December 31, 2021 Unrecognized tax benefits, excluding related interest expense and penalties (a) $ 283 $ 274 Portion that, if recognized, would reduce tax expense and effective tax rate (b) $ 189 $ 160 ____________________ (a) Interest and penalties related to unrecognized tax benefits were not material for all periods presented. (b) Comprised of federal unrecognized tax benefits and state and local unrecognized tax benefits net of the effects of associated U.S. federal income taxes. Excludes amounts attributable to any related valuation allowances resulting from associated increases in deferred tax assets. We establish a liability that represents the difference between a tax position taken (or expected to be taken) on an income tax return and the amount of taxes recognized in our financial statements. The liability associated with the unrecognized tax benefits is adjusted periodically when new information becomes available. The amount of unrecognized tax benefits that is reasonably possible to be resolved in the next twelve months is expected to be $73 million, of which $23 million, if recognized, would reduce the Company's tax expense and effective tax rate. In the current year, the Company executed a Memorandum of Understanding with the IRS to participate voluntarily in the IRS Compliance Assurance Process (“CAP”) program for the 2022 tax year, and thus the tax year is under IRS review. The IRS is also examining our 2021 tax year, and we expect the review will be substantially completed in the current year. Additionally, we are under examination in various states going back to 2014. We believe that there are no issues or claims that are likely to significantly impact our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties that could result from such examinations. |
Legal Proceedings and Regulator
Legal Proceedings and Regulatory Matters | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Regulatory Matters | LEGAL PROCEEDINGS AND REGULATORY MATTERS In the normal course of business, from time to time, we have been named as a defendant in various legal proceedings, including arbitrations, class actions and other litigation, arising in connection with our business activities. Certain of the legal actions include claims for substantial compensatory and/or punitive damages, or claims for indeterminate amounts of damages. We are also involved, from time to time, in reviews, investigations and proceedings (both formal and informal) by governmental agencies regarding our business (collectively, “regulatory matters”), which could subject us to significant fines, penalties, obligations to change our business practices or other requirements resulting in increased expenses, diminished income and damage to our reputation. We contest liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, we establish an accrued liability for legal and regulatory matters when those matters present loss contingencies which are both probable and reasonably estimable. Legal proceedings and regulatory matters are subject to many uncertain factors that generally cannot be predicted with assurance, and we may be exposed to losses in excess of any amounts accrued. For some matters, we are able to determine that an estimated loss, while not probable, is reasonably possible. For other matters, including those that have not yet progressed through discovery and/or where important factual information and legal issues are unresolved, we are unable to make such an estimate. We currently estimate that the reasonably possible losses for legal proceedings and regulatory matters, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. This estimate of possible loss does not represent our maximum loss exposure. The legal proceedings and regulatory matters underlying the estimate will change from time to time and actual results may vary significantly from current estimates. Our estimate of reasonably possible losses involves significant judgment, given the varying stages of the proceedings, the existence of numerous yet to be resolved issues, the breadth of the claims (often spanning multiple years), unspecified damages and/or the novelty of the legal issues presented. Based on our current knowledge, we do not believe that we are a party to any pending legal proceeding or regulatory matters that would have a material adverse effect on our condensed consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, the ultimate outcome of a particular matter could be material to our operating results for a particular period depending on, among other factors, the size of the loss or liability imposed and the level of our earnings for that period, and could adversely affect our business and reputation. Below is a description of certain of our regulatory matters and legal proceedings. On November 2, 2018, a putative class action lawsuit, Retail Wholesale Department Store Union Local 338 Retirement Fund v. Synchrony Financial, et al. , was filed in the U.S. District Court for the District of Connecticut, naming as defendants the Company and two of its officers. The lawsuit asserts violations of the Exchange Act for allegedly making materially misleading statements and/or omitting material information concerning the Company’s underwriting practices and private-label card business, and was filed on behalf of a putative class of persons who purchased or otherwise acquired the Company’s common stock between October 21, 2016 and November 1, 2018. The complaint seeks an award of unspecified compensatory damages, costs and expenses. On February 5, 2019, the court appointed Stichting Depositary APG Developed Markets Equity Pool as lead plaintiff for the putative class. On April 5, 2019, an amended complaint was filed, asserting a new claim for violations of the Securities Act in connection with statements in the offering materials for the Company’s December 1, 2017 note offering. The Securities Act claims are filed on behalf of persons who purchased or otherwise acquired Company bonds in or traceable to the December 1, 2017 note offering between December 1, 2017 and November 1, 2018. The amended complaint names as additional defendants two additional Company officers, the Company’s board of directors, and the underwriters of the December 1, 2017 note offering. The amended complaint is captioned Stichting Depositary APG Developed Markets Equity Pool and Stichting Depositary APG Fixed Income Credit Pool v. Synchrony Financial et al. On March 26, 2020, the District Court recaptioned the case In re Synchrony Financial Securities Litigation and on March 31, 2020, the District Court granted the defendants’ motion to dismiss the complaint with prejudice. On April 20, 2020, plaintiffs filed a notice to appeal the decision to the United States Court of Appeals for the Second Circuit. On February 16, 2021, the Court of Appeals affirmed the District Court’s dismissal of the Securities Act claims and all of the claims under the Exchange Act with the exception of a claim relating to a single statement on January 19, 2018 regarding whether Synchrony was receiving pushback on credit from its retail partners. On January 28, 2019, a purported shareholder derivative action, Gilbert v. Keane, et al. , was filed in the U.S. District Court for the District of Connecticut against the Company as a nominal defendant, and certain of the Company’s officers and directors. The lawsuit alleges breach of fiduciary duty claims based on the allegations raised by the plaintiff in the Stichting Depositary APG class action, unjust enrichment, waste of corporate assets, and that the defendants made materially misleading statements and/or omitted material information in violation of the Exchange Act. The complaint seeks a declaration that the defendants breached and/or aided and abetted the breach of their fiduciary duties to the Company, unspecified monetary damages with interest, restitution, a direction that the defendants take all necessary actions to reform and improve corporate governance and internal procedures, and attorneys’ and experts’ fees. On March 11, 2019, a second purported shareholder derivative action, Aldridge v. Keane, et al. , was filed in the U.S. District Court for the District of Connecticut. The allegations in the Aldridge complaint are substantially similar to those in the Gilbert complaint. On March 26, 2020, the District Court recaptioned the Gilbert and Aldridge cases as In re Synchrony Financial Derivative Litigation. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions (for example, unemployment, housing, interest rates and market liquidity) which affect reported amounts and related disclosures in our condensed consolidated financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in incremental losses on loan receivables, future impairments of debt securities, goodwill and intangible assets, increases in reserves for contingencies, establishment of valuation allowances on deferred tax assets and increases in our tax liabilities. We primarily conduct our business within the United States and Canada and substantially all of our revenues are from U.S. customers. The operating activities conducted by our non-U.S. affiliates use the local currency as their functional currency. The effects of translating the financial statements of these non-U.S. affiliates to U.S. dollars are included in equity. Asset and liability accounts are translated at period-end exchange rates, while revenues and expenses are translated at average rates for the respective periods. Consolidated Basis of Presentation The Company’s financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries – i.e., entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (“power”) combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses (“significant economics”), we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. We consolidate certain securitization entities under the VIE model because we have both power and significant economics. See Note 5. Variable Interest Entities . |
Interim Period Presentation | Interim Period Presentation The condensed consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these condensed consolidated financial statements should not be considered as necessarily indicative of results that may be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with our 2021 annual consolidated financial statements and the related notes in our Annual Report on Form 10-K for the year ended December 31, 2021 (our "2021 Form 10-K"). |
New Accounting Standards | New Accounting Standards Recently Issued But Not Yet Adopted Accounting Standards In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the separate recognition and measurement guidance for Troubled Debt Restructurings ("TDRs") by creditors. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. This guidance is effective for the Company on January 1, 2023, with early adoption permitted. The Company is currently assessing the impacts of the guidance and plans to adopt the guidance on January 1, 2023 on a modified retrospective basis. |
Debt Securities (Tables)
Debt Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Our debt securities consist of the following: September 30, 2022 December 31, 2021 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated ($ in millions) cost gains losses fair value cost gains losses fair value U.S. government and federal agency $ 3,763 $ — $ (61) $ 3,702 $ 2,222 $ — $ (2) $ 2,220 State and municipal 10 — — 10 13 — — 13 Residential mortgage-backed (a) 490 — (54) 436 597 12 (3) 606 Asset-backed (b) 951 — (24) 927 2,432 2 (4) 2,430 Other 8 — (1) 7 13 1 — 14 Total $ 5,222 $ — $ (140) $ 5,082 $ 5,277 $ 15 $ (9) $ 5,283 _______________________ (a) All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. At September 30, 2022 and December 31, 2021, $102 million and $145 million of residential mortgage-backed securities, respectively, are pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve Discount Window advances. (b) Our asset-backed securities are collateralized by credit card and auto loans. |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities: In loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized ($ in millions) fair value losses fair value losses At September 30, 2022 U.S. government and federal agency $ 3,405 $ (55) $ 297 $ (6) State and municipal 7 — 3 — Residential mortgage-backed 337 (35) 98 (19) Asset-backed 432 (10) 382 (14) Other 7 (1) — — Total $ 4,188 $ (101) $ 780 $ (39) At December 31, 2021 U.S. government and federal agency $ 563 $ (2) $ — $ — State and municipal 4 — — — Residential mortgage-backed 105 (2) 27 (1) Asset-backed 1,653 (4) — — Total $ 2,325 $ (8) $ 27 $ (1) |
Investments Classified by Contractual Maturity Date | Contractual Maturities of Investments in Available-for-Sale Debt Securities Amortized Estimated Weighted At September 30, 2022 ($ in millions) cost fair value Average yield (a) Due Within one year $ 3,466 $ 3,442 2.2 % After one year through five years $ 1,640 $ 1,542 1.1 % After five years through ten years $ 90 $ 76 1.9 % After ten years $ 26 $ 22 2.8 % _____________________ (a) Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations. |
Loan Receivables and Allowanc_2
Loan Receivables and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | ($ in millions) September 30, 2022 December 31, 2021 Credit cards $ 81,254 $ 76,628 Consumer installment loans 2,945 2,675 Commercial credit products 1,723 1,372 Other 90 65 Total loan receivables, before allowance for credit losses (a)(b) $ 86,012 $ 80,740 _______________________ (a) Total loan receivables include $18.4 billion and $20.5 billion of restricted loans of consolidated securitization entities at September 30, 2022 and December 31, 2021, respectively. See Note 5. Variable Interest Entities for further information on these restricted loans. (b) At September 30, 2022 and December 31, 2021, loan receivables included deferred costs, net of deferred income, of $213 million and $211 million, respectively. |
Allowance for Credit Losses on Financing Receivables | Allowance for Credit Losses ($ in millions) Balance at July 1, 2022 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 8,605 $ 864 $ (785) $ 189 $ — $ 8,873 Consumer installment loans 129 38 (25) 4 — 146 Commercial credit products 71 26 (19) 2 — 80 Other 3 1 (1) — — 3 Total $ 8,808 $ 929 $ (830) $ 195 $ — $ 9,102 ($ in millions) Balance at July 1, 2021 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 8,904 $ (22) $ (625) $ 208 $ — $ 8,465 Consumer installment loans 67 37 (11) 4 — 97 Commercial credit products 50 10 (8) 1 — 53 Other 2 — (1) — — 1 Total $ 9,023 $ 25 $ (645) $ 213 $ — $ 8,616 ($ in millions) Balance at January 1, 2022 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 8,512 $ 2,028 $ (2,273) $ 606 $ — $ 8,873 Consumer installment loans 115 80 (63) 14 — 146 Commercial credit products 59 64 (48) 5 — 80 Other 2 2 (1) — — 3 Total $ 8,688 $ 2,174 $ (2,385) $ 625 $ — $ 9,102 ($ in millions) Balance at January 1, 2021 Provision charged to operations Gross charge-offs Recoveries Other Balance at Credit cards $ 10,076 $ 156 $ (2,407) $ 640 $ — $ 8,465 Consumer installment loans 127 (7) (38) 14 1 97 Commercial credit products 61 15 (27) 4 — 53 Other 1 1 (1) — — 1 Total $ 10,265 $ 165 $ (2,473) $ 658 $ 1 $ 8,616 |
Past Due Financing Receivables | Delinquent and Non-accrual Loans At September 30, 2022 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 1,500 $ 1,200 $ 2,700 $ 1,200 $ — Consumer installment loans 47 10 57 — 10 Commercial credit products 39 22 61 22 — Total delinquent loans $ 1,586 $ 1,232 $ 2,818 $ 1,222 $ 10 Percentage of total loan receivables 1.8 % 1.4 % 3.3 % 1.4 % — % At December 31, 2021 ($ in millions) 30-89 days delinquent 90 or more days delinquent Total past due 90 or more days delinquent and accruing Total non-accruing Credit cards $ 1,111 $ 923 $ 2,034 $ 923 $ — Consumer installment loans 35 6 41 — 6 Commercial credit products 26 13 39 13 — Total delinquent loans $ 1,172 $ 942 $ 2,114 $ 936 $ 6 Percentage of total loan receivables 1.5 % 1.2 % 2.6 % 1.2 % — % Delinquency trends are the primary credit quality indicator for our consumer installment loans, which we use to monitor credit quality and risk within the portfolio. Total consumer installment past due of $57 million and $41 million at September 30, 2022 and December 31, 2021, respectively, were not material. |
Troubled Debt Restructurings on Financing Receivables | The following table provides information on our TDR loan modifications during the periods presented: Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Credit cards $ 265 $ 149 $ 681 $ 564 Consumer installment loans — — — — Commercial credit products 1 1 2 2 Total $ 266 $ 150 $ 683 $ 566 |
Impaired Financing Receivables | The following table provides information about loans classified as TDRs and specific reserves. We do not evaluate credit card loans on an individual basis but instead estimate an allowance for credit losses on a collective basis. At September 30, 2022 ($ in millions) Total recorded Related allowance Net recorded investment Unpaid principal balance Credit cards $ 1,255 $ (512) $ 743 $ 1,122 Consumer installment loans — — — — Commercial credit products 3 (1) 2 3 Total $ 1,258 $ (513) $ 745 $ 1,125 At December 31, 2021 ($ in millions) Total recorded Related allowance Net recorded investment Unpaid principal balance Credit cards $ 1,171 $ (481) $ 690 $ 1,053 Consumer installment loans — — — — Commercial credit products 3 (1) 2 3 Total $ 1,174 $ (482) $ 692 $ 1,056 Three months ended September 30, 2022 2021 ($ in millions) Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Credit cards $ 9 $ 80 $ 1,218 $ 11 $ 79 $ 1,196 Consumer installment loans — — — — — — Commercial credit products — 1 4 — 1 4 Total $ 9 $ 81 $ 1,222 $ 11 $ 80 $ 1,200 Nine months ended September 30, 2022 2021 ($ in millions) Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Interest income recognized during period when loans were modified Interest income that would have been recorded with original terms Average recorded investment Credit cards $ 26 $ 234 $ 1,201 $ 30 $ 235 $ 1,235 Consumer installment loans — — — — — — Commercial credit products — 1 3 — 1 4 Total $ 26 $ 235 $ 1,204 $ 30 $ 236 $ 1,239 |
Troubled Debt Restructurings on Financing Receivables, Subsequent Default | The following table presents the type, number and amount of loans accounted for as TDRs that enrolled in a modification plan within the previous 12 months from the applicable balance sheet date and experienced a payment default and charged-off during the periods presented. Three months ended September 30, 2022 2021 ($ in millions) Accounts defaulted Loans defaulted Accounts defaulted Loans defaulted Credit cards 25,288 $ 56 18,082 $ 48 Consumer installment loans — — — — Commercial credit products 51 — 42 — Total 25,339 $ 56 18,124 $ 48 Nine months ended September 30, 2022 2021 ($ in millions) Accounts defaulted Loans defaulted Accounts defaulted Loans defaulted Credit cards 51,944 $ 116 43,897 $ 114 Consumer installment loans — — — — Commercial credit products 104 1 100 1 Total 52,048 $ 117 43,997 $ 115 |
Financing Receivable Credit Quality Indicators | The following table provides the most recent VantageScore scores available for our customers at September 30, 2022, December 31, 2021 and September 30, 2021, respectively, as a percentage of each class of loan receivable. The table below excludes 0.4%, 0.4% and 0.4% of our total loan receivables balance at each of September 30, 2022, December 31, 2021 and September 30, 2021, respectively, which represents those customer accounts for which a VantageScore score is not available. September 30, 2022 December 31, 2021 September 30, 2021 651 or 591 to 590 or 651 or 591 to 590 or 651 or 591 to 590 or higher 650 less higher 650 less higher 650 less Credit cards 75 % 18 % 7 % 78 % 17 % 5 % 79 % 17 % 4 % Consumer installment loans 77 % 17 % 6 % 79 % 17 % 4 % 80 % 16 % 4 % Commercial credit products 90 % 6 % 4 % 92 % 5 % 3 % 93 % 4 % 3 % |
Interest Income and Interest Expense Disclosure | The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale: Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Credit cards (a) $ 4,153 $ 3,793 $ 12,009 $ 10,934 Consumer installment loans 74 64 209 176 Commercial credit products 30 29 83 73 Other 1 1 4 3 Total $ 4,258 $ 3,887 $ 12,305 $ 11,186 _______________________ (a) Interest income on credit cards that was reversed related to accrued interest receivables written off was $265 million and $199 million for the three months ended September 30, 2022 and 2021, respectively, and $770 million and $800 million for the nine months ended September 30, 2022 and 2021, respectively. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The table below summarizes the assets and liabilities of our consolidated securitization VIEs described above: ($ in millions) September 30, 2022 December 31, 2021 Assets Loan receivables, net (a) $ 16,629 $ 18,594 Loan receivables held for sale — 1,398 Other assets (b) 1,031 292 Total $ 17,660 $ 20,284 Liabilities Borrowings $ 6,360 $ 7,288 Other liabilities 18 14 Total $ 6,378 $ 7,302 _______________________ (a) Includes $1.7 billion and $1.9 billion of related allowance for credit losses resulting in gross restricted loans of $18.4 billion and $20.5 billion at September 30, 2022 and December 31, 2021, respectively. (b) Includes $1.0 billion and $288 million of segregated funds held by the VIEs at September 30, 2022 and December 31, 2021, respectively, which are classified as restricted cash and equivalents and included as a component of other assets |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | September 30, 2022 December 31, 2021 ($ in millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related $ 1,622 $ (1,088) $ 534 $ 1,797 $ (1,222) $ 575 Capitalized software and other 1,491 (992) 499 1,407 (814) 593 Total $ 3,113 $ (2,080) $ 1,033 $ 3,204 $ (2,036) $ 1,168 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | September 30, 2022 December 31, 2021 ($ in millions) Amount Average rate (a) Amount Average rate (a) Interest-bearing deposits $ 68,032 1.2 % $ 61,911 0.9 % Non-interest-bearing deposits 372 — 359 — Total deposits $ 68,404 $ 62,270 ____________________ (a) Based on interest expense for the nine months ended September 30, 2022 and the year ended December 31, 2021 and average deposits balances. |
Schedule of Maturities of Deposit Liabilities | At September 30, 2022, our interest-bearing time deposits maturing for the remainder of 2022 and over the next four years and thereafter were as follows: ($ in millions) 2022 2023 2024 2025 2026 Thereafter Deposits $ 3,690 $ 17,931 $ 6,000 $ 1,876 $ 635 $ 1,579 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | September 30, 2022 December 31, 2021 ($ in millions) Maturity date Interest Rate Weighted average interest rate Outstanding Amount (a) Outstanding Amount (a) Borrowings of consolidated securitization entities: Fixed securitized borrowings 2022 - 2025 2.62% - 3.87% 3.31 % $ 3,260 $ 3,188 Floating securitized borrowings 2023 - 2025 3.48% - 3.79% 3.60 % 3,100 4,100 Total borrowings of consolidated securitization entities 3.45 % 6,360 7,288 Senior unsecured notes: Synchrony Financial senior unsecured notes: Fixed senior unsecured notes 2024 - 2031 2.87% - 5.15% 4.22 % 6,471 6,470 Synchrony Bank senior unsecured notes: Fixed senior unsecured notes 2025 - 2027 5.40% - 5.63% 5.49 % 1,490 749 Total senior unsecured notes 4.45 % 7,961 7,219 Total borrowings $ 14,321 $ 14,507 ___________________ (a) The amounts presented above for outstanding borrowings include unamortized debt premiums, discounts and issuance costs. |
Schedule of Maturities of Long-term Debt | The following table summarizes the maturities of the principal amount of our borrowings of consolidated securitization entities and senior unsecured notes for the remainder of 2022 and over the next four years and thereafter: ($ in millions) 2022 2023 2024 2025 2026 Thereafter Borrowings $ 883 $ 2,007 $ 3,150 $ 4,825 $ 500 $ 3,000 |
Schedule of Debt Issuances | 2022 Issuance ($ in millions ): Issuance Date Principal Amount Maturity Interest Rate Synchrony Financial June 2022 $ 750 June 2025 4.875% Synchrony Bank August 2022 $ 900 August 2025 5.400% August 2022 $ 600 August 2027 5.625% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables present our assets and liabilities measured at fair value on a recurring basis. Recurring Fair Value Measurements At September 30, 2022 ($ in millions) Level 1 Level 2 Level 3 Total (a) Assets Debt securities U.S. government and federal agency $ — $ 3,702 $ — $ 3,702 State and municipal — — 10 10 Residential mortgage-backed — 436 — 436 Asset-backed — 927 — 927 Other — — 7 7 Other (b) 14 — 15 29 Total $ 14 $ 5,065 $ 32 $ 5,111 Liabilities Other (c) — — 8 8 Total $ — $ — $ 8 $ 8 At December 31, 2021 ($ in millions) Assets Debt securities U.S. government and federal agency $ — $ 2,220 $ — $ 2,220 State and municipal — — 13 13 Residential mortgage-backed — 606 — 606 Asset-backed — 2,430 — 2,430 Other — — 14 14 Other (b) 15 — 34 49 Total $ 15 $ 5,256 $ 61 $ 5,332 Liabilities Other (c) — — 14 14 Total $ — $ — $ 14 $ 14 _______________________ (a) For the nine months ended September 30, 2022 and 2021, there were no fair value measurements transferred between levels. (b) Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Statement of Financial Position, as well as certain financial assets for which we have elected the fair value option which are included in Loan receivables in our Statement of Financial Position. (c) Other is primarily comprised of certain financial liabilities for which we have elected the fair value option, which are included in Accrued expenses and other liabilities in our Statement of Financial Position. |
Fair Value, by Balance Sheet Grouping | Financial Assets and Financial Liabilities Carried at Other Than Fair Value Carrying Corresponding fair value amount At September 30, 2022 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 11,962 $ 11,962 $ 11,962 $ — $ — Other assets (a)(b) $ 1,099 $ 1,099 $ 1,099 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (c) $ 76,895 $ 87,914 $ — $ — $ 87,914 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 68,404 $ 67,419 $ — $ 67,419 $ — Borrowings of consolidated securitization entities $ 6,360 $ 6,245 $ — $ 3,187 $ 3,058 Senior unsecured notes $ 7,961 $ 7,396 $ — $ 7,396 $ — Carrying Corresponding fair value amount At December 31, 2021 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value: Cash and equivalents (a) $ 8,337 $ 8,337 $ 8,337 $ — $ — Other assets (a)(b) $ 349 $ 349 $ 349 $ — $ — Financial assets carried at other than fair value: Loan receivables, net (c) $ 72,034 $ 84,483 $ — $ — $ 84,483 Loan receivables held for sale (c) $ 4,361 $ 4,499 $ — $ — $ 4,499 Financial Liabilities Financial liabilities carried at other than fair value: Deposits $ 62,270 $ 62,486 $ — $ 62,486 $ — Borrowings of consolidated securitization entities $ 7,288 $ 7,359 $ — $ 3,238 $ 4,121 Senior unsecured notes $ 7,219 $ 7,662 $ — $ 7,662 $ — _______________________ (a) For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments. (b) This balance relates to restricted cash and equivalents, which is included in other assets. |
Equity Securities without Readily Determinable Fair Value | Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Carry Value (a) $ 246 $ 135 $ 246 $ 135 Upward adjustments (b) — 9 7 57 Downward adjustments (b) (1) — (3) (1) _______________________ (a) The carrying value as of December 31, 2021 was $232 million. |
Regulatory and Capital Adequa_2
Regulatory and Capital Adequacy (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Banking Regulation, Risk-Based Information [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts, ratios and the applicable required minimums of the Company and the Bank are as follows: Synchrony Financial At September 30, 2022 ($ in millions) Actual Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 14,154 16.5 % $ 6,853 8.0 % Tier 1 risk-based capital $ 13,012 15.2 % $ 5,140 6.0 % Tier 1 leverage $ 13,012 13.2 % $ 3,945 4.0 % Common equity Tier 1 Capital $ 12,278 14.3 % $ 3,855 4.5 % At December 31, 2021 ($ in millions) Actual Minimum for capital Amount Ratio (a) Amount Ratio (b) Total risk-based capital $ 15,122 17.8 % $ 6,796 8.0 % Tier 1 risk-based capital $ 14,003 16.5 % $ 5,097 6.0 % Tier 1 leverage $ 14,003 14.7 % $ 3,800 4.0 % Common equity Tier 1 Capital $ 13,269 15.6 % $ 3,822 4.5 % Synchrony Bank At September 30, 2022 ($ in millions) Actual Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 13,414 16.9 % $ 6,350 8.0 % $ 7,937 10.0 % Tier 1 risk-based capital $ 12,356 15.6 % $ 4,762 6.0 % $ 6,350 8.0 % Tier 1 leverage $ 12,356 13.6 % $ 3,638 4.0 % $ 4,548 5.0 % Common equity Tier I capital $ 12,356 15.6 % $ 3,572 4.5 % $ 5,159 6.5 % At December 31, 2021 ($ in millions) Actual Minimum for capital Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio (a) Amount Ratio (b) Amount Ratio Total risk-based capital $ 14,091 18.3 % $ 6,175 8.0 % $ 7,718 10.0 % Tier 1 risk-based capital $ 13,075 16.9 % $ 4,631 6.0 % $ 6,175 8.0 % Tier 1 leverage $ 13,075 15.1 % $ 3,455 4.0 % $ 4,318 5.0 % Common equity Tier I capital $ 13,075 16.9 % $ 3,473 4.5 % $ 5,017 6.5 % _______________________ (a) Capital ratios are calculated based on the Basel III Standardized Approach rules. Capital amounts and ratios at September 30, 2022 and at December 31, 2021 in the above tables reflect the applicable CECL regulatory capital transition adjustment. (b) At September 30, 2022 and at December 31, 2021, Synchrony Financial and the Bank also must maintain a capital conservation buffer of common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted earnings per common share: Three months ended September 30, Nine months ended September 30, (in millions, except per share data) 2022 2021 2022 2021 Net earnings $ 703 $ 1,141 $ 2,439 $ 3,408 Preferred stock dividends (11) (11) $ (32) $ (32) Net earnings available to common stockholders $ 692 $ 1,130 $ 2,407 $ 3,376 Weighted average common shares outstanding, basic 468.5 560.6 492.1 $ 573.6 Effect of dilutive securities 2.2 5.0 2.9 $ 4.6 Weighted average common shares outstanding, dilutive 470.7 565.6 $ 495.0 $ 578.2 Earnings per basic common share $ 1.48 $ 2.02 $ 4.89 $ 5.89 Earnings per diluted common share $ 1.47 $ 2.00 $ 4.86 $ 5.84 |
Incomes Taxes (Tables)
Incomes Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | ($ in millions) September 30, 2022 December 31, 2021 Unrecognized tax benefits, excluding related interest expense and penalties (a) $ 283 $ 274 Portion that, if recognized, would reduce tax expense and effective tax rate (b) $ 189 $ 160 ____________________ (a) Interest and penalties related to unrecognized tax benefits were not material for all periods presented. (b) Comprised of federal unrecognized tax benefits and state and local unrecognized tax benefits net of the effects of associated U.S. federal income taxes. Excludes amounts attributable to any related valuation allowances resulting from associated increases in deferred tax assets. |
Debt Securities - Schedule of A
Debt Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Debt | |||
Amortized cost | $ 5,222 | $ 5,277 | |
Gross unrealized gains | 0 | 15 | |
Gross unrealized losses | (140) | (9) | |
Estimated fair value | 5,082 | 5,283 | |
U.S. government and federal agency | |||
Debt | |||
Amortized cost | 3,763 | 2,222 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (61) | (2) | |
Estimated fair value | 3,702 | 2,220 | |
State and municipal | |||
Debt | |||
Amortized cost | 10 | 13 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | 10 | 13 | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Residential Mortgage Backed Securities pledged as collateral to the Federal Reserve | 102 | 145 | |
Debt | |||
Amortized cost | [1] | 490 | 597 |
Gross unrealized gains | [1] | 0 | 12 |
Gross unrealized losses | [1] | (54) | (3) |
Estimated fair value | [1] | 436 | 606 |
Asset-backed | |||
Debt | |||
Amortized cost | [2] | 951 | 2,432 |
Gross unrealized gains | [2] | 0 | 2 |
Gross unrealized losses | [2] | (24) | (4) |
Estimated fair value | [2] | 927 | 2,430 |
Other Debt Obligations | |||
Debt | |||
Amortized cost | 8 | 13 | |
Gross unrealized gains | 0 | 1 | |
Gross unrealized losses | (1) | 0 | |
Estimated fair value | $ 7 | $ 14 | |
[1]All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. At September 30, 2022 and December 31, 2021, $102 million and $145 million of residential mortgage-backed securities, respectively, are pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve Discount Window advances.[2]Our asset-backed securities are collateralized by credit card and auto loans. |
Debt Securities - Continuous Un
Debt Securities - Continuous Unrealized Losses (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Estimated fair value | ||
Less than 12 months | $ 4,188 | $ 2,325 |
12 months or more | 780 | 27 |
Gross unrealized losses | ||
Less than 12 months | (101) | (8) |
12 months or more | (39) | (1) |
U.S. government and federal agency | ||
Estimated fair value | ||
Less than 12 months | 3,405 | 563 |
12 months or more | 297 | 0 |
Gross unrealized losses | ||
Less than 12 months | (55) | (2) |
12 months or more | (6) | 0 |
State and municipal | ||
Estimated fair value | ||
Less than 12 months | 7 | 4 |
12 months or more | 3 | 0 |
Gross unrealized losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Residential mortgage-backed | ||
Estimated fair value | ||
Less than 12 months | 337 | 105 |
12 months or more | 98 | 27 |
Gross unrealized losses | ||
Less than 12 months | (35) | (2) |
12 months or more | (19) | (1) |
Asset-backed | ||
Estimated fair value | ||
Less than 12 months | 432 | 1,653 |
12 months or more | 382 | 0 |
Gross unrealized losses | ||
Less than 12 months | (10) | (4) |
12 months or more | (14) | $ 0 |
Other Debt Obligations | ||
Estimated fair value | ||
Less than 12 months | 7 | |
12 months or more | 0 | |
Gross unrealized losses | ||
Less than 12 months | (1) | |
12 months or more | $ 0 |
Debt Securities - Contractual M
Debt Securities - Contractual Maturities (Details) $ in Millions | Sep. 30, 2022 USD ($) | |
Amortized Cost | ||
Within one year | $ 3,466 | |
After one year through five years | 1,640 | |
After five years through ten years | 90 | |
After ten years | 26 | |
Estimated Fair Value | ||
Within one year | 3,442 | |
After one year through five years | 1,542 | |
After five years through ten years | 76 | |
After ten years | $ 22 | |
Weighted Average Yield | ||
Within one year | 2.20% | [1] |
After one year through five years | 1.10% | [1] |
After five years through ten years | 1.90% | [1] |
After ten years | 2.80% | [1] |
[1]Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations. |
Loan Receivables and Allowanc_3
Loan Receivables and Allowance for Credit Losses - Loan Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | [1],[2] | $ 86,012 | $ 80,740 |
Loan Receivable, Deferred Income | 213 | 211 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 81,254 | 76,628 | |
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 2,945 | 2,675 | |
Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 1,723 | 1,372 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | $ 90 | $ 65 | |
[1] Total loan receivables include $18.4 billion and $20.5 billion of restricted loans of consolidated securitization entities at September 30, 2022 and December 31, 2021, respectively. See Note 5. Variable Interest Entities for further information on these restricted loans. |
Loan Receivables and Allowanc_4
Loan Receivables and Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 9,102 | $ 8,616 | $ 9,102 | $ 8,616 | $ 8,808 | $ 8,688 | $ 9,023 | $ 10,265 |
Provision for credit losses | 929 | 25 | 2,174 | 165 | ||||
Gross charge-offs | (830) | (645) | (2,385) | (2,473) | ||||
Recoveries | 195 | 213 | 625 | 658 | ||||
Other | 0 | 0 | 0 | 1 | ||||
Credit cards | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 8,873 | 8,465 | 8,873 | 8,465 | 8,605 | 8,512 | 8,904 | 10,076 |
Provision for credit losses | 864 | (22) | 2,028 | 156 | ||||
Gross charge-offs | (785) | (625) | (2,273) | (2,407) | ||||
Recoveries | 189 | 208 | 606 | 640 | ||||
Other | 0 | 0 | 0 | 0 | ||||
Consumer installment loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 146 | 97 | 146 | 97 | 129 | 115 | 67 | 127 |
Provision for credit losses | 38 | 37 | 80 | (7) | ||||
Gross charge-offs | (25) | (11) | (63) | (38) | ||||
Recoveries | 4 | 4 | 14 | 14 | ||||
Other | 0 | 0 | 0 | 1 | ||||
Commercial credit products | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 80 | 53 | 80 | 53 | 71 | 59 | 50 | 61 |
Provision for credit losses | 26 | 10 | 64 | 15 | ||||
Gross charge-offs | (19) | (8) | (48) | (27) | ||||
Recoveries | 2 | 1 | 5 | 4 | ||||
Other | 0 | 0 | 0 | 0 | ||||
Other | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 3 | 1 | 3 | 1 | $ 3 | $ 2 | $ 2 | $ 1 |
Provision for credit losses | 1 | 0 | 2 | 1 | ||||
Gross charge-offs | (1) | (1) | (1) | (1) | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Other | $ 0 | $ 0 | $ 0 | $ 0 |
Loan Receivables and Allowanc_5
Loan Receivables and Allowance for Credit Losses - Delinquent and Non Accrual Status (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | [1],[2] | $ 86,012 | $ 80,740 |
90 or more days delinquent and accruing | 1,222 | 936 | |
Total non-accruing | $ 10 | $ 6 | |
Loans and Leases Receivable, Maximum Maturity Period for Loans in Permanent Modification Program | 60 months | ||
Financing Receivable, Percentage of Total Loan Receivables | |||
Percentage of total loan receivables, 30-89 days delinquent | 1.80% | 1.50% | |
Percentage of total loan receivables, 90 or more days delinquent | 1.40% | 1.20% | |
Percentage of total loan receivables, Past due | 3.30% | 2.60% | |
Percentage of total loan receivables, 90 or more days delinquent and accruing | 1.40% | 1.20% | |
Percentage of total loan receivables, Total non-accruing | 0% | 0% | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | $ 81,254 | $ 76,628 | |
90 or more days delinquent and accruing | 1,200 | 923 | |
Total non-accruing | 0 | 0 | |
Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 2,945 | 2,675 | |
90 or more days delinquent and accruing | 0 | 0 | |
Total non-accruing | 10 | 6 | |
Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 1,723 | 1,372 | |
90 or more days delinquent and accruing | 22 | 13 | |
Total non-accruing | 0 | 0 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 90 | 65 | |
Financing Receivables, 30 to 89 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 1,586 | 1,172 | |
Financing Receivables, 30 to 89 Days Past Due | Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 1,500 | 1,111 | |
Financing Receivables, 30 to 89 Days Past Due | Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 47 | 35 | |
Financing Receivables, 30 to 89 Days Past Due | Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 39 | 26 | |
Financial Asset, Equal to or Greater than 90 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 1,232 | 942 | |
Financial Asset, Equal to or Greater than 90 Days Past Due | Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 1,200 | 923 | |
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 10 | 6 | |
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 22 | 13 | |
Financial Asset, Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 2,818 | 2,114 | |
Financial Asset, Past Due | Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 2,700 | 2,034 | |
Financial Asset, Past Due | Consumer installment loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | 57 | 41 | |
Financial Asset, Past Due | Commercial credit products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivables: (Notes 4 and 5) | $ 61 | $ 39 | |
[1] Total loan receivables include $18.4 billion and $20.5 billion of restricted loans of consolidated securitization entities at September 30, 2022 and December 31, 2021, respectively. See Note 5. Variable Interest Entities for further information on these restricted loans. |
Loan Receivables and Allowanc_6
Loan Receivables and Allowance for Credit Losses - Loans Entered into a Loan Modification Program (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans entered into a modification program | $ 266 | $ 150 | $ 683 | $ 566 |
Credit cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans entered into a modification program | 265 | 149 | 681 | 564 |
Consumer installment loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans entered into a modification program | 0 | 0 | 0 | 0 |
Commercial credit products | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans entered into a modification program | $ 1 | $ 1 | $ 2 | $ 2 |
Loan Receivables and Allowanc_7
Loan Receivables and Allowance for Credit Losses - Classified as TDRs (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total recorded investment | $ 1,258 | $ 1,174 |
Related allowance | (513) | (482) |
Net recorded investment | 745 | 692 |
Unpaid principal balance | 1,125 | 1,056 |
Credit cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total recorded investment | 1,255 | 1,171 |
Related allowance | (512) | (481) |
Net recorded investment | 743 | 690 |
Unpaid principal balance | 1,122 | 1,053 |
Consumer installment loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Net recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Commercial credit products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total recorded investment | 3 | 3 |
Related allowance | (1) | (1) |
Net recorded investment | 2 | 2 |
Unpaid principal balance | $ 3 | $ 3 |
Loan Receivables and Allowanc_8
Loan Receivables and Allowance for Credit Losses - Financial Effects of TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 9,102 | $ 8,616 | $ 9,102 | $ 8,616 | $ 8,808 | $ 8,688 | $ 9,023 | $ 10,265 |
Interest income recognized during period when loans were modified | 9 | 11 | 26 | 30 | ||||
Interest income that would have been recorded with original terms | 81 | 80 | 235 | 236 | ||||
Average recorded investment | 1,222 | 1,200 | 1,204 | 1,239 | ||||
Credit cards | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 8,873 | 8,465 | 8,873 | 8,465 | 8,605 | 8,512 | 8,904 | 10,076 |
Interest income recognized during period when loans were modified | 9 | 11 | 26 | 30 | ||||
Interest income that would have been recorded with original terms | 80 | 79 | 234 | 235 | ||||
Average recorded investment | 1,218 | 1,196 | 1,201 | 1,235 | ||||
Consumer installment loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 146 | 97 | 146 | 97 | 129 | 115 | 67 | 127 |
Interest income recognized during period when loans were modified | 0 | 0 | 0 | 0 | ||||
Interest income that would have been recorded with original terms | 0 | 0 | 0 | 0 | ||||
Average recorded investment | 0 | 0 | 0 | 0 | ||||
Commercial credit products | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 80 | 53 | 80 | 53 | 71 | 59 | 50 | 61 |
Interest income recognized during period when loans were modified | 0 | 0 | 0 | 0 | ||||
Interest income that would have been recorded with original terms | 1 | 1 | 1 | 1 | ||||
Average recorded investment | 4 | 4 | 3 | 4 | ||||
Other | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 3 | $ 1 | $ 3 | $ 1 | $ 3 | $ 2 | $ 2 | $ 1 |
Loan Receivables and Allowanc_9
Loan Receivables and Allowance for Credit Losses - Payment Defaults (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) contract | Sep. 30, 2021 USD ($) contract | Sep. 30, 2022 USD ($) contract | Sep. 30, 2021 USD ($) contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts defaulted | contract | 25,339 | 18,124 | 52,048 | 43,997 |
Loans defaulted | $ | $ 56 | $ 48 | $ 117 | $ 115 |
Credit cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts defaulted | contract | 25,288 | 18,082 | 51,944 | 43,897 |
Loans defaulted | $ | $ 56 | $ 48 | $ 116 | $ 114 |
Consumer installment loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts defaulted | contract | 0 | 0 | 0 | 0 |
Loans defaulted | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial credit products | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts defaulted | contract | 51 | 42 | 104 | 100 |
Loans defaulted | $ | $ 0 | $ 0 | $ 1 | $ 1 |
Loan Receivables and Allowan_10
Loan Receivables and Allowance for Credit Losses - Credit Quality Indicators (Details) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Credit Quality Indicators, Percentage of Loan Receivables with No Vantage Score | 0.40% | 0.40% | 0.40% |
Credit cards | Six Hundred and Fifty-One or Higher | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 75% | 78% | 79% |
Credit cards | Five Hundred and Ninety-One to Six Hundred and Fifty | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 18% | 17% | 17% |
Credit cards | Five Hundred and Ninety or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 7% | 5% | 4% |
Consumer installment loans | Six Hundred and Fifty-One or Higher | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 77% | 79% | 80% |
Consumer installment loans | Five Hundred and Ninety-One to Six Hundred and Fifty | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 17% | 17% | 16% |
Consumer installment loans | Five Hundred and Ninety or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 6% | 4% | 4% |
Commercial credit products | Six Hundred and Fifty-One or Higher | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 90% | 92% | 93% |
Commercial credit products | Five Hundred and Ninety-One to Six Hundred and Fifty | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 6% | 5% | 4% |
Commercial credit products | Five Hundred and Ninety or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of class of loan receivable | 4% | 3% | 3% |
Loan Receivables and Allowan_11
Loan Receivables and Allowance for Credit Losses - Interest Income by Product (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest and fees on loans | $ 4,258 | $ 3,887 | $ 12,305 | $ 11,186 | |
Credit cards | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest and fees on loans | [1] | 4,153 | 3,793 | 12,009 | 10,934 |
Financing Receivable, Accrued Interest, Writeoff | 265 | 199 | 770 | 800 | |
Consumer installment loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest and fees on loans | 74 | 64 | 209 | 176 | |
Commercial credit products | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest and fees on loans | 30 | 29 | 83 | 73 | |
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest and fees on loans | $ 1 | $ 1 | $ 4 | $ 3 | |
[1]Interest income on credit cards that was reversed related to accrued interest receivables written off was $265 million and $199 million for the three months ended September 30, 2022 and 2021, respectively, and $770 million and $800 million for the nine months ended September 30, 2022 and 2021, respectively. |
Loan Receivables and Allowan_12
Loan Receivables and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Reasonable and Supportable Forecast Period | 12 months | |||
Financing Receivable, Allowance for Credit Loss, Reversion Period | 6 months | |||
Gain (Loss) on Sales of Loans, Net | $ 120 | |||
CarryingValueOfPortfoliosHeldForSaleSubsequentlySold | 3,800 | |||
Proceeds from sale of loan receivables | $ 3,900 | $ 3,930 | $ 23 | |
Credit cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unused Commitments to Extend Credit | $ 413,000 | $ 431,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||||||
Loan receivables, net | $ 76,910 | $ 72,052 | |||||
Loan receivables held for sale (Note 4) | 0 | 4,361 | |||||
Other assets | 4,674 | 3,442 | |||||
Total assets | 100,766 | 95,748 | |||||
Total liabilities | 87,754 | 82,093 | |||||
Financing Receivable, Allowance for Credit Loss | 9,102 | $ 8,808 | 8,688 | $ 8,616 | $ 9,023 | $ 10,265 | |
Total loan receivables | $ 86,012 | $ 80,740 | |||||
Restricted Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Loan receivables, net | [1] | $ 16,629 | $ 18,594 | ||||
Loan receivables held for sale (Note 4) | 0 | 1,398 | |||||
Other assets | [2] | 1,031 | 292 | ||||
Total assets | 17,660 | 20,284 | |||||
Borrowings | [3] | 6,360 | 7,288 | ||||
Other liabilities | 18 | 14 | |||||
Total liabilities | 6,378 | 7,302 | |||||
Financing Receivable, Allowance for Credit Loss | 1,700 | 1,900 | |||||
Total loan receivables | 18,361 | 20,529 | |||||
Restricted Cash Equivalents | $ 1,000 | $ 288 | |||||
[1]Includes $1.7 billion and $1.9 billion of related allowance for credit losses resulting in gross restricted loans of $18.4 billion and $20.5 billion at September 30, 2022 and December 31, 2021, respectively.[2]Includes $1.0 billion and $288 million of segregated funds held by the VIEs at September 30, 2022 and December 31, 2021, respectively, which are classified as restricted cash and equivalents and included as a component of other assets |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||||
Interest and fees on loans | $ 4,258 | $ 3,887 | $ 12,305 | $ 11,186 | |
Provision for credit losses | 929 | 25 | 2,174 | 165 | |
Amortization Method Qualified Affordable Housing Project Investments | 519 | 519 | $ 441 | ||
Other investments in non-consolidated VIEs | 218 | 218 | $ 184 | ||
Investments Funding Commitment | |||||
Variable Interest Entity [Line Items] | |||||
Other Commitment | 200 | 200 | |||
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Interest and fees on loans | 896 | 1,000 | 2,700 | 3,100 | |
Provision for credit losses | 23 | (133) | 151 | (213) | |
Interest on borrowings of consolidated securitization entities | $ 54 | $ 41 | $ 127 | $ 136 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,113 | $ 3,204 |
Accumulated amortization | (2,080) | (2,036) |
Net | 1,033 | 1,168 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,622 | 1,797 |
Accumulated amortization | (1,088) | (1,222) |
Net | 534 | 575 |
Capitalized software and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,491 | 1,407 |
Accumulated amortization | (992) | (814) |
Net | $ 499 | $ 593 |
Intangible Assets Narrative (De
Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 158 | |||
Customer-Related Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 55 | $ 64 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | 5 years | ||
Selling and Marketing Expense [Member] | Retail Partner Contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 26 | $ 31 | $ 86 | $ 95 |
Other Expense | Finite-Lived Intangible Assets, Excluding Retail Partner Contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 64 | $ 49 | $ 189 | $ 150 |
Deposits - Schedule of Deposit
Deposits - Schedule of Deposit Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Deposits [Abstract] | |||
Interest-bearing deposits, amount | $ 68,032 | $ 61,911 | |
Non-interest-bearing deposits, amount | 372 | 359 | |
Total deposits | $ 68,404 | $ 62,270 | |
Average Rate Domestic Deposits | [1] | 1.20% | 0.90% |
[1]Based on interest expense for the nine months ended September 30, 2022 and the year ended December 31, 2021 and average deposits balances. |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Maturities of Time Deposits [Abstract] | |
2022 | $ 3,690 |
2023 | 17,931 |
2024 | 6,000 |
2025 | 1,876 |
2026 | 635 |
Thereafter | $ 1,579 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Billions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Deposits [Line Items] | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 6.1 | $ 5 |
Demand deposits with no defined maturity | 31.1 | |
Deposits, Savings Deposits | 28.6 | |
Program Arranger | ||
Schedule of Deposits [Line Items] | ||
Broker network deposit sweeps | $ 5.2 |
Borrowings - Borrowings Schedul
Borrowings - Borrowings Schedule (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Amount | |||
Total borrowings | [1] | $ 14,321 | $ 14,507 |
Senior unsecured notes | |||
Amount | |||
Unsecured debt | [1] | $ 7,961 | 7,219 |
Average rate | |||
Weighted average interest rate | 4.45% | ||
Fixed Senior Unsecured Notes | Senior unsecured notes | |||
Amount | |||
Unsecured debt | [1] | $ 6,471 | 6,470 |
Average rate | |||
Weighted average interest rate | 4.22% | ||
Subsidiaries [Member] | Fixed Senior Unsecured Notes | Senior unsecured notes | |||
Amount | |||
Unsecured debt | [1] | $ 1,490 | 749 |
Average rate | |||
Weighted average interest rate | 5.49% | ||
Variable Interest Entity, Primary Beneficiary | |||
Average rate | |||
Weighted average interest rate | 3.45% | ||
Borrowings of consolidated securitization entities | [1] | $ 6,360 | 7,288 |
Variable Interest Entity, Primary Beneficiary | Fixed Securitized Borrowings | |||
Average rate | |||
Weighted average interest rate | 3.31% | ||
Borrowings of consolidated securitization entities | [1] | $ 3,260 | 3,188 |
Variable Interest Entity, Primary Beneficiary | Floating Securitized Borrowings | |||
Average rate | |||
Weighted average interest rate | 3.60% | ||
Borrowings of consolidated securitization entities | [1] | $ 3,100 | $ 4,100 |
Minimum | Fixed Senior Unsecured Notes | Senior unsecured notes | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.87% | ||
Minimum | Subsidiaries [Member] | Fixed Senior Unsecured Notes | Senior unsecured notes | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | ||
Minimum | Variable Interest Entity, Primary Beneficiary | Fixed Securitized Borrowings | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.62% | ||
Minimum | Variable Interest Entity, Primary Beneficiary | Floating Securitized Borrowings | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.48% | ||
Maximum | Fixed Senior Unsecured Notes | Senior unsecured notes | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | ||
Maximum | Subsidiaries [Member] | Fixed Senior Unsecured Notes | Senior unsecured notes | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.63% | ||
Maximum | Variable Interest Entity, Primary Beneficiary | Fixed Securitized Borrowings | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.87% | ||
Maximum | Variable Interest Entity, Primary Beneficiary | Floating Securitized Borrowings | |||
Average rate | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.79% | ||
[1]The amounts presented above for outstanding borrowings include unamortized debt premiums, discounts and issuance costs. |
Borrowings - Borrowings Maturit
Borrowings - Borrowings Maturity Schedule (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Maturities of Long-Term Debt [Abstract] | |
2022 | $ 883 |
2023 | 2,007 |
2024 | 3,150 |
2025 | 4,825 |
2026 | 500 |
Thereafter | $ 3,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Variable Interest Entity, Primary Beneficiary | |
Debt Instrument [Line Items] | |
Remaining undrawn capacity | $ 3,200 |
Senior Notes | Fixed Rate Senior Notes Due 2031 | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 750 |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% |
Senior Notes | Fixed Rate Senior Notes Due 2031 | Subsidiaries [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 900 |
Debt Instrument, Interest Rate, Stated Percentage | 5.40% |
Senior Notes | Fixed Rate Senior Notes Due 2027 | Subsidiaries [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 600 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% |
Revolving Credit Facility | Unsecured Debt | |
Debt Instrument [Line Items] | |
Undrawn capacity | $ 500 |
Maximum | Senior Notes | Fixed Senior Unsecured Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% |
Maximum | Senior Notes | Fixed Senior Unsecured Notes | Subsidiaries [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 5.63% |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | $ 5,082 | $ 5,283 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | [1] | 5,111 | 5,332 | |
Business Combination, Contingent Consideration, Liability | 8 | [1] | 14 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | [1] | 8 | 14 | |
Assets measured at fair value, Other | 29 | [1] | 49 | |
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 14 | 15 | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Assets measured at fair value, Other | 14 | 15 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 5,065 | 5,256 | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Assets measured at fair value, Other | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 32 | 61 | ||
Business Combination, Contingent Consideration, Liability | 8 | 14 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 8 | 14 | ||
Assets measured at fair value, Other | 15 | 34 | ||
U.S. government and federal agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 3,702 | 2,220 | ||
U.S. government and federal agency | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | [1] | 3,702 | 2,220 | |
U.S. government and federal agency | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
U.S. government and federal agency | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 3,702 | 2,220 | ||
U.S. government and federal agency | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
State and municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 10 | 13 | ||
State and municipal | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | [1] | 10 | 13 | |
State and municipal | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
State and municipal | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
State and municipal | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 10 | 13 | ||
Residential mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | [2] | 436 | 606 | |
Residential mortgage-backed | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | [1] | 436 | 606 | |
Residential mortgage-backed | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
Residential mortgage-backed | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 436 | 606 | ||
Residential mortgage-backed | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | [3] | 927 | 2,430 | |
Asset-backed | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | [1] | 927 | 2,430 | |
Asset-backed | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
Asset-backed | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 927 | 2,430 | ||
Asset-backed | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
Other Debt Obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 7 | 14 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 7 | 14 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | 0 | 0 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities (Note 3) | $ 7 | $ 14 | ||
[1]For the nine months ended September 30, 2022 and 2021, there were no fair value measurements transferred between levels.[2]All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. At September 30, 2022 and December 31, 2021, $102 million and $145 million of residential mortgage-backed securities, respectively, are pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve Discount Window advances.[3]Our asset-backed securities are collateralized by credit card and auto loans. |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value Asset and Liabilities Carried at Other than Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and equivalents | [1] | $ 11,962 | $ 8,337 |
Other assets | [1],[2] | 1,099 | 349 |
Loan receivables, net | [3] | 87,914 | 84,483 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 4,499 | |
Deposits | 67,419 | 62,486 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and equivalents | [1] | 11,962 | 8,337 |
Other assets | [1],[2] | 1,099 | 349 |
Loan receivables, net | [3] | 76,895 | 72,034 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 4,361 | |
Deposits | 68,404 | 62,270 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and equivalents | [1] | 11,962 | 8,337 |
Other assets | [1],[2] | 1,099 | 349 |
Loan receivables, net | [3] | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 0 | |
Deposits | 0 | 0 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and equivalents | [1] | 0 | 0 |
Other assets | [1],[2] | 0 | 0 |
Loan receivables, net | [3] | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 0 | |
Deposits | 67,419 | 62,486 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and equivalents | [1] | 0 | 0 |
Other assets | [1],[2] | 0 | 0 |
Loan receivables, net | [3] | 87,914 | 84,483 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 4,499 | |
Deposits | 0 | 0 | |
Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 7,396 | 7,662 | |
Senior Notes | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 7,961 | 7,219 | |
Senior Notes | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 0 | 0 | |
Senior Notes | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 7,396 | 7,662 | |
Senior Notes | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Borrowings of consolidated securitization entities | 6,245 | 7,359 | |
Variable Interest Entity, Primary Beneficiary | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Borrowings of consolidated securitization entities | 6,360 | 7,288 | |
Variable Interest Entity, Primary Beneficiary | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Borrowings of consolidated securitization entities | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Borrowings of consolidated securitization entities | 3,187 | 3,238 | |
Variable Interest Entity, Primary Beneficiary | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Borrowings of consolidated securitization entities | $ 3,058 | $ 4,121 | |
[1]For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments.[2]This balance relates to restricted cash and equivalents, which is included in other assets.[3]Excludes financial assets for which we have elected the fair value option. Under certain retail partner program agreements, the expected sales proceeds in the event of a sale of their credit card portfolio may be limited to the amounts owed by our customers, which may be less than the fair value indicated above. |
Equity Securities without Readi
Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |||||
Fair Value Disclosures [Abstract] | |||||||||
Carry Value | $ 246 | [1] | $ 135 | [1] | $ 246 | [1] | $ 135 | [1] | $ 232 |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | 0 | [2] | 9 | [2] | 7 | 57 | |||
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Annual Amount | (1) | [2] | $ 0 | [2] | (3) | $ (1) | |||
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Cumulative Amount | 188 | 188 | |||||||
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Cumulative Amount | $ (11) | $ (11) | |||||||
[1]The carrying value as of December 31, 2021 was $232 million.[2]Between January 1, 2018 and September 30, 2022, cumulative upward and downward carrying value adjustments were $188 million and $(11) million, respectively. |
Regulatory and Capital Adequa_3
Regulatory and Capital Adequacy (Capital Amounts and Ratios) (Details) - Basel III $ in Millions | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital conservation buffer | 0.025 | 0.025 | |
Total risk-based capital | |||
Actual | $ 14,154 | $ 15,122 | |
Actual (percent) | [1] | 0.165 | 0.178 |
Minimum for capital adequacy purposes | $ 6,853 | $ 6,796 | |
Minimum for capital adequacy purposes (percent) | [2] | 0.080 | 0.080 |
Tier 1 risk-based capital | |||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 13,012 | $ 14,003 | |
Actual (percent) | [1] | 0.152 | 0.165 |
Minimum for capital adequacy purposes | $ 5,140 | $ 5,097 | |
Minimum for capital adequacy purposes (percent) | [2] | 0.060 | 0.060 |
Tier 1 leverage | |||
Banking Regulation, Tier One Leverage Capital, Actual | $ 13,012 | $ 14,003 | |
Actual (percent) | [1] | 0.132 | 0.147 |
Minimum for capital adequacy purposes | $ 3,945 | $ 3,800 | |
Minimum for capital adequacy purposes (percent) | [2] | 0.040 | 0.040 |
Common equity Tier I capital | |||
Common equity, actual | $ 12,278 | $ 13,269 | |
Common equity, actual (percent) | [1] | 0.143 | 0.156 |
Common equity, minimum for capital adequacy purposes | $ 3,855 | $ 3,822 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | [2] | 0.045 | 0.045 |
Synchrony Bank | |||
Total risk-based capital | |||
Actual | $ 13,414 | $ 14,091 | |
Actual (percent) | [1] | 0.169 | 0.183 |
Minimum for capital adequacy purposes | $ 6,350 | $ 6,175 | |
Minimum for capital adequacy purposes (percent) | [2] | 0.080 | 0.080 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 7,937 | $ 7,718 | |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.100 | 0.100 | |
Tier 1 risk-based capital | |||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 12,356 | $ 13,075 | |
Actual (percent) | [1] | 0.156 | 0.169 |
Minimum for capital adequacy purposes | $ 4,762 | $ 4,631 | |
Minimum for capital adequacy purposes (percent) | [2] | 0.060 | 0.060 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 6,350 | $ 6,175 | |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.080 | 0.080 | |
Tier 1 leverage | |||
Banking Regulation, Tier One Leverage Capital, Actual | $ 12,356 | $ 13,075 | |
Actual (percent) | [1] | 0.136 | 0.151 |
Minimum for capital adequacy purposes | $ 3,638 | $ 3,455 | |
Minimum for capital adequacy purposes (percent) | [2] | 0.040 | 0.040 |
Minimum to be well-capitalized under prompt corrective action provisions | $ 4,548 | $ 4,318 | |
Minimum to be well-capitalized under prompt corrective action provisions (percent) | 0.050 | 0.050 | |
Common equity Tier I capital | |||
Common equity, actual | $ 12,356 | $ 13,075 | |
Common equity, actual (percent) | [1] | 0.156 | 0.169 |
Common equity, minimum for capital adequacy purposes | $ 3,572 | $ 3,473 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | [2] | 0.045 | 0.045 |
Common equity, minimum to be well-capitalized under prompt corrective action provisions | $ 5,159 | $ 5,017 | |
Common Equity Tier One Capital Required to be Well Capitalized Risk Weighted Assets | 0.065 | 0.065 | |
[1]Capital ratios are calculated based on the Basel III Standardized Approach rules. Capital amounts and ratios at September 30, 2022 and at December 31, 2021 in the above tables reflect the applicable CECL regulatory capital transition adjustment.[2]At September 30, 2022 and at December 31, 2021, Synchrony Financial and the Bank also must maintain a capital conservation buffer of common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||||
Net earnings | $ 703 | $ 804 | $ 932 | $ 1,141 | $ 1,242 | $ 1,025 | $ 2,439 | $ 3,408 |
Preferred stock dividends | (11) | (11) | (32) | (32) | ||||
Net earnings available to common stockholders | $ 692 | $ 1,130 | $ 2,407 | $ 3,376 | ||||
Weighted average common shares outstanding, basic (in shares) | 468.5 | 560.6 | 492.1 | 573.6 | ||||
Effect of dilutive securities (in shares) | 2.2 | 5 | 2.9 | 4.6 | ||||
Weighted average common shares outstanding, dilutive (in shares) | 470.7 | 565.6 | 495 | 578.2 | ||||
Earnings per basic common share (in usd per share) | $ 1.48 | $ 2.02 | $ 4.89 | $ 5.89 | ||||
Earnings per diluted common share (in usd per share) | $ 1.47 | $ 2 | $ 4.86 | $ 5.84 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 5 | 1 | 3 | 1 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized tax benefits, excluding related interest expense and penalties | [1] | $ 283 | $ 274 |
Portion that, if recognized, would reduce tax expense and effective tax rate | [2] | 189 | $ 160 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 73 | ||
Decrease in Unrecognized Tax Benefits That Would Impact Effective Tax Rate | $ 23 | ||
[1]Interest and penalties related to unrecognized tax benefits were not material for all periods presented.[2]Comprised of federal unrecognized tax benefits and state and local unrecognized tax benefits net of the effects of associated U.S. federal income taxes. Excludes amounts attributable to any related valuation allowances resulting from associated increases in deferred tax assets. |