Synchrony Financial (NYSE: SYF) reported its first-quarter 2024 results on Friday, showing continued growth and financial strength. The company’s digital business continues to experience significant traction, driving overall revenue growth. Synchrony’s diverse portfolio of financing solutions and innovative digital capabilities continue to meet the evolving needs of partners and consumers alike.
The company’s net income for the quarter reached $1.23 billion, marking a rise of 5% compared to the same period last year. This growth was primarily driven by the expansion of its digital and retail segments. Digital revenue jumped by 15%, showcasing the company’s success in leveraging its digital platform to acquire and engage customers. Retail revenue also increased by 4%, driven by strong demand for Synchrony’s financing solutions from its retail partners.
In line with its commitment to shareholder returns, Synchrony’s Board of Directors declared a quarterly cash dividend of $0.22 per share of common stock, payable on June 30, 2024, to shareholders of record as of the close of business on May 15, 2024. The Board also declared quarterly cash dividends for the outstanding shares of the Series A Preferred Stock and Series B Preferred Stock.
Synchrony also announced an incremental share repurchase program of up to $1 billion, commencing this quarter through December 2024. This move demonstrates the company’s confidence in its financial position and its commitment to returning value to shareholders. The company plans to utilize a portion of its excess capital to repurchase shares, further enhancing shareholder value.
Brian Doubles, President and Chief Executive Officer of Synchrony, commented on the results, stating, ‘We are very pleased with our first-quarter performance, which underscores the resilience and growth potential of our business. Our teams continue to execute with excellence, delivering innovative solutions that meet the evolving needs of our partners and consumers.’
Analysts and investors welcomed the strong results and positive outlook from Synchrony Financial. The company’s focus on digital innovation and commitment to customer satisfaction is expected to continue driving growth and profitability in the coming quarters.
