The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this quarterly report and in our 2025 Form 10-K. The discussion below contains forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations. See “Cautionary Note Regarding Forward-Looking Statements.” Introduction and Business Overview ____________________________________________________________________________________________ We are a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” For the three and six months ended June 30, 2026, we financed $49.8 billion and $92.8 billion of purchase volume, respectively, and had 68.3 million and 68.7 million average active accounts, respectively, and at June 30, 2026, we had $102.2 billion of loan receivables. We offer our credit products primarily through our wholly-owned subsidiary, the Bank. In addition, through the Bank, we offer, directly to retail, affinity relationships and commercial customers, a range of deposit products insured by the Federal Deposit Insurance Corporation (“FDIC”), including certificates of deposit, individual retirement accounts (“IRAs”), money market accounts, savings accounts and sweep and affinity deposits. We also take deposits at the Bank through third-party firms that offer our FDIC-insured deposit products to their customers. Our deposit base has continued to serve as a source of stable and diversified low-cost funding for our credit activities. At June 30, 2026, we had $82.8 billion in deposits, which represented 83% of our total funding sources. Our Sales Platforms ____________________________________________________________________________________________ We conduct our operations through a single business segment. Profitability and expenses, including funding costs, credit losses and operating expenses, are managed for the business as a whole. Substantially all of our revenue generating activities are within the United States and are aligned through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). Those platforms are organized by the types of partners we work with, and are measured on interest and fees on loans, loan receivables, active accounts and other sales metrics. 6 Table of Contents Home & Auto Our Home & Auto sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through a broad network of partners and merchants providing home and automotive merchandise and services, as well as our Synchrony Car Care network and Synchrony HOME credit card offering. Our Home & Auto sales platform partners include a wide range of key retailers in the home improvement, furniture, bedding, flooring, appliance and electronics industries, such as Ashley HomeStores, Inc., Floor & Decor, Lowe's, and Mattress Firm, as well as automotive merchandise and services, such as Chevron and Discount Tire. In addition, we also have program agreements with manufacturers, buying groups and industry associations, such as Generac, Nationwide Marketing Group and the Home Furnishings Association. Digital Our Digital sales platform provides comprehensive payments and financing solutions with integrated digital experiences through partners and merchants who primarily engage with their consumers through digital channels. Our Digital sales platform includes key partners delivering digital payment solutions, such as PayPal, including our Venmo program, online marketplaces, such as Amazon, and digital-first brands and merchants, such as the QVC Group, Inc., Verizon and Virgin Red. Diversified & Value Our Diversified & Value sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through large retail partners who deliver everyday value to consumers shopping for daily needs or important life moments. Our Diversified & Value sales platform is comprised of six large retail partners: Belk, Fleet Farm, JCPenney, OnePay, Sam's Club and TJX Companies, Inc. Health & Wellness Our Health & Wellness sales platform provides comprehensive healthcare payments and financing solutions, through a network of providers and retail locations, for those seeking health and wellness care for themselves, their families and their pets, and includes our CareCredit brand, as well as partners such as Walgreens. Lifestyle Our Lifestyle sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through partners and merchants who offer merchandise in power sports, outdoor power equipment, and other industries such as sporting goods, apparel, jewelry and music. Our Lifestyle sales platform partners include a wide range of key retailers in the apparel, specialty retail, outdoor, music and luxury industry, such as American Eagle, DICK'S Sporting Goods, Guitar Center, Pandora, Polaris, Suzuki and Sweetwater. Corp, Other Corp, Other includes activity and balances related to certain program agreements with retail partners and merchants that will not be renewed beyond their current expiration date and certain programs that were previously terminated, which are not managed within the five sales platforms discussed above, as well as fee income generated from Versatile Credit. Corp, Other also includes amounts related to changes in the fair value of equity investments and realized gains or losses associated with the sale of businesses and investments. 7 Table of Contents Our Credit Products ____________________________________________________________________________________________ Through our sales platforms, we offer three principal types of credit products: credit cards, commercial credit products and consumer installment loans. We also offer our Payment Security program, which is a debt cancellation product. The following table sets forth each credit product by type and indicates the percentage of our total loan receivables that are under standard terms only or pursuant to a promotional financing offer at June 30, 2026: Promotional Offer Credit Product Standard Terms Only Deferred Interest Other Promotional Total Credit cards 62.3 % 17.1 % 12.8 % 92.2 % Commercial credit products 2.6 — — 2.6 Consumer installment loans — 0.1 5.0 5.1 Other 0.1 — — 0.1 Total 65.0 % 17.2 % 17.8 % 100.0 % Credit Cards We offer the following principal types of consumer credit cards: •Private Label Credit Cards. Private label credit cards are partner-branded credit cards (e.g., Lowe’s or Amazon) or program-branded credit cards (e.g., Synchrony Car Care or CareCredit) that are used primarily for the purchase of goods and services from the partner or within the program network. In addition, in some cases, cardholders may be permitted to access their credit card accounts for cash advances. Credit under our private label credit cards is extended either on standard terms only or pursuant to a promotional financing offer. •Co-Branded Cards. Our co-branded cards comprise our patented Dual Cards and general purpose co-branded credit cards. Our Dual Cards are credit cards that function as private label credit cards when used to purchase goods and services from our partners, and as general purpose credit cards when used to make purchases from other retailers wherever cards from those card networks are accepted or for cash advance transactions. We also offer a Synchrony-branded general purpose credit card. Our co-branded cards are offered across all of our sales platforms and credit is typically extended on standard terms only. We offer consumer co-branded cards through over 15 of our large partners, of which the majority are Dual Cards, as well as our CareCredit Dual Card. Our consumer co-branded cards totaled 34% of our total loan receivables portfolio at June 30, 2026. Commercial Credit Products We offer private label cards and Dual Cards for commercial customers that are similar to our consumer offerings, and includes the Lowe's commercial co-branded credit card portfolio acquired in April 2026. We also offer a commercial pay-in-full accounts receivable product to a wide range of business customers. Installment Loans We originate secured installment loans to consumers in the United States, primarily in our Lifestyle sales platform for power products in our Outdoor market (motorcycles, ATVs and lawn and garden). We also offer unsecured installment loans to consumers across all of our sales platforms through various products, such as Synchrony's Pay Later solutions. Installment loans are closed-end credit accounts where the customer pays down the outstanding balance in installments. Installment loans, other than our Synchrony Pay Later Pay in 4 product, are generally assessed periodic finance charges using fixed interest rates. 8 Table of Contents Business Trends and Conditions ____________________________________________________________________________________________ We believe our business and results of operations will be impacted in the future by various trends and conditions. For a discussion of certain trends and conditions, see “Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Trends and Conditions” in our 2025 Form 10-K. For a discussion of how certain trends and conditions impacted the three and six months ended June 30, 2026, see “—Results of Operations.” Seasonality ____________________________________________________________________________________________ Our business is typically influenced by a seasonal pattern, with purchase volume and loan receivables typically rising beginning in the third quarter and generally peaking in fourth quarter, including the impacts of consumer spending for U.S. holidays, then declining through the first and second quarters as customers pay their balances down. Delinquency rates and delinquent loan receivables balances typically rise in the third and fourth quarters as customer payment rates typically decline, resulting in higher net charge-off rates in the first half of the calendar year. Delinquent loan receivables at year-end are more likely to return to current status than those delinquent at interim period ends. Consistent with this historical experience, our allowance for credit losses as a percentage of total loan receivables is generally higher at interim period ends than at year-end and may increase mid-year even when certain credit metrics improve. These seasonal impacts to purchase volume and our loan receivables balances may materially affect our results of operations, delinquency metrics and the allowance for credit losses as a percentage of total loan receivables with the most pronounced effects typically occurring between the fourth quarter and the subsequent first quarter. 9 Table of Contents Results of Operations ____________________________________________________________________________________________ Summary Highlights for the Three and Six Months Ended June 30, 2026 Earnings Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Interest income $ 5,583 $ 5,586 $ 11,186 $ 11,136 Interest expense 975 1,065 1,943 2,151 Net interest income 4,608 4,521 9,243 8,985 Retailer share arrangements (1,027) (992) (2,097) (1,887) Provision for credit losses 1,201 1,146 2,536 2,637 Net interest income, after retailer share arrangements and provision for credit losses 2,380 2,383 4,610 4,461 Other income 137 118 270 267 Other expense 1,331 1,245 2,647 2,488 Earnings before provision for income taxes 1,186 1,256 2,233 2,240 Provision for income taxes 301 289 543 516 Net earnings $ 885 $ 967 $ 1,690 $ 1,724 Net earnings available to common stockholders $ 864 $ 946 $ 1,648 $ 1,682 Net earnings decreased to $885 million from $967 million and was flat at $1.7 billion for the three and six months ended June 30, 2026, respectively, primarily reflecting the following key drivers: •Increases in net interest income of $87 million and $258 million for the three and six months ended June 30, 2026, respectively, primarily driven by decreases in interest expense and increases in interest and fees on loans, partially offset by lower interest income from our liquidity portfolio. •Provision for credit losses increased $55 million for the three months ended June 30, 2026, primarily driven by a lower reserve release in the current year period, partially offset by a decrease in net charge-offs. Provision for credit losses decreased $101 million in the six months ended June 30, 2026, primarily driven by a decrease in net charge-offs, partially offset by a lower reserve release in the current year period. •Retailer share arrangements increased $35 million and $210 million for the three and six months ended June 30, 2026, respectively, reflecting program performance and higher purchase volume, and other expense increased $86 million and $159 million for the three and six months ended June 30, 2026, respectively, primarily driven by higher operational losses and costs related to technology investments. Loan receivables and Asset Quality •Loan receivables increased 2.4% to $102.2 billion at June 30, 2026 compared to June 30, 2025, reflecting higher purchase volume, including the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio, partially offset by the effects of higher payment rates. •Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 2 basis points to 4.16% at June 30, 2026 from 4.18% at June 30, 2025. The net charge-off rate decreased 27 basis points and 61 basis points for the three and six months ended June 30, 2026, respectively, to 5.43% for both periods. •Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.09% at June 30, 2026, as compared to 10.59% at June 30, 2025. 10 Table of Contents Funding, Liquidity and Capital •At June 30, 2026, deposits represented 83% of our total funding sources. Total deposits increased by 2.0% to $82.8 billion at June 30, 2026, compared to December 31, 2025. •In June 2026, we issued depositary shares representing $500 million of 7.250% fixed rate reset non-cumulative perpetual preferred stock, Series C, with dividends payable quarterly beginning in August 2026. •During the six months ended June 30, 2026, we repurchased $1.8 billion of our outstanding common stock, and declared and paid cash dividends of $0.60 per share, or $204 million in the aggregate. •At June 30, 2026, we had a total remaining share repurchase authorization of $5.7 billion under the program that was announced in April 2026 and does not have an expiration date. In addition, the Company announced that the Board approved an increase of our quarterly dividend to $0.34 per common share commencing in the third quarter of 2026. 2026 Partner Agreements During the six months ended June 30 2026, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 30 partners, which included the following: New partnerships: • Indian Motorcycle Lifestyle Program extensions: • Adorama Digital • Amerivet Partners Health & Wellness • Harbor Freight Home & Auto • LaserAway Health & Wellness • Miracle-Ear Health & Wellness • Roto-Rooter Home & Auto • Suzuki Lifestyle •In our Health & Wellness sales platform, we also expanded CareCredit partnerships with pet insurance providers, Figo and Embrace, to enable reimbursements back to CareCredit accounts, making the solution available for more than 1.7 million pets. •In April 2026, we completed the acquisition of $0.7 billion of loan receivables associated with the Lowe's commercial co-branded credit card portfolio, which are included within our Home & Auto sales platform results. 11 Table of Contents Other Financial and Statistical Data The following table sets forth certain other financial and statistical data for the periods indicated: At and for the At and for the Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Financial Position Data (Average): Loan receivables, including held for sale $ 100,702 $ 99,236 $ 100,698 $ 100,123 Total assets $ 121,270 $ 120,441 $ 120,663 $ 120,467 Deposits $ 82,698 $ 82,426 $ 82,410 $ 82,606 Borrowings $ 16,429 $ 16,195 $ 15,986 $ 16,119 Total equity $ 16,603 $ 16,755 $ 16,687 $ 16,726 Selected Performance Metrics: Purchase volume(1)(2) $ 49,827 $ 46,084 $ 92,811 $ 86,804 Home & Auto $ 12,120 $ 11,459 $ 21,563 $ 20,905 Digital $ 14,897 $ 13,647 $ 28,396 $ 26,126 Diversified & Value $ 17,200 $ 15,393 $ 32,126 $ 29,125 Health & Wellness $ 4,092 $ 4,007 $ 7,963 $ 7,781 Lifestyle $ 1,518 $ 1,432 $ 2,763 $ 2,600 Corp, Other $ — $ 146 $ — $ 267 Average active accounts (in thousands)(2)(3) 68,341 68,050 68,685 68,810 Net interest margin(4) 15.08 % 14.78 % 15.29 % 14.76 % Net charge-offs $ 1,364 $ 1,411 $ 2,710 $ 2,999 Net charge-offs (annualized) as a % of average loan receivables, including held for sale 5.43 % 5.70 % 5.43 % 6.04 % Allowance coverage ratio(5) 10.09 % 10.59 % 10.09 % 10.59 % Return on assets(6) 2.9 % 3.2 % 2.8 % 2.9 % Return on equity(7) 21.4 % 23.1 % 20.4 % 20.8 % Equity to assets(8) 13.69 % 13.91 % 13.83 % 13.88 % Other expense (annualized) as a % of average loan receivables, including held for sale 5.30 % 5.03 % 5.30 % 5.01 % Efficiency ratio(9) 35.8 % 34.1 % 35.7 % 33.8 % Effective income tax rate 25.4 % 23.0 % 24.3 % 23.0 % Selected Period-End Data: Loan receivables $ 102,208 $ 99,776 $ 102,208 $ 99,776 Allowance for credit losses $ 10,312 $ 10,564 $ 10,312 $ 10,564 30+ days past due as a % of period-end loan receivables(10) 4.16 % 4.18 % 4.16 % 4.18 % 90+ days past due as a % of period-end loan receivables(10) 2.01 % 2.06 % 2.01 % 2.06 % Total active accounts (in thousands)(2)(3) 68,410 68,186 68,410 68,186 ______________________ (1)Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. (2)Includes activity and accounts associated with loan receivables held for sale. (3)Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. (4)Net interest margin represents annualized net interest income divided by average total interest-earning assets. (5)Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables. (6)Return on assets represents annualized net earnings as a percentage of average total assets. (7)Return on equity represents annualized net earnings as a percentage of average total equity. (8)Equity to assets represents average total equity as a percentage of average total assets. (9)Efficiency ratio represents (i) other expense, divided by (ii) sum of net interest income, plus other income, less retailer share arrangements. (10)Based on customer statement-end balances extrapolated to the respective period-end date. 12 Table of Contents Average Balance Sheet The following tables set forth information for the periods indicated regarding average balance sheet data, which are used in the discussion of interest income, interest expense and net interest income that follows: 2026 2025 Three months ended June 30 ($ in millions) Average Balance Interest Income / Expense AverageYield /Rate(1) Average Balance InterestIncome /Expense AverageYield /Rate(1) Assets Interest-earning assets: Interest-earning cash and equivalents(2) $ 18,067 $ 167 3.71 % $ 20,699 $ 228 4.42 % Securities available for sale 3,775 36 3.83 % 2,774 30 4.34 % Loan receivables, including held for sale(3): Credit cards 92,690 5,092 22.03 % 91,460 5,076 22.26 % Consumer installment loans 5,288 187 14.18 % 5,692 207 14.59 % Commercial credit products 2,646 100 15.16 % 1,981 43 8.71 % Other 78 1 5.14 % 103 2 7.79 % Total loan receivables, including held for sale 100,702 5,380 21.43 % 99,236 5,328 21.54 % Total interest-earning assets 122,544 5,583 18.27 % 122,709 5,586 18.26 % Non-interest-earning assets: Cash and due from banks 945 868 Allowance for credit losses (10,428) (10,797) Other assets 8,209 7,661 Total non-interest-earning assets (1,274) (2,268) Total assets $ 121,270 $ 120,441 Liabilities Interest-bearing liabilities: Interest-bearing deposit accounts $ 82,279 $ 767 3.74 % $ 82,014 $ 855 4.18 % Borrowings of consolidated securitization entities 8,915 111 4.99 % 7,926 104 5.26 % Senior and subordinated unsecured notes 7,514 97 5.18 % 8,269 106 5.14 % Total interest-bearing liabilities 98,708 975 3.96 % 98,209 1,065 4.35 % Non-interest-bearing liabilities: Non-interest-bearing deposit accounts 419 412 Other liabilities 5,540 5,065 Total non-interest-bearing liabilities 5,959 5,477 Total liabilities 104,667 103,686 Equity Total equity 16,603 16,755 Total liabilities and equity $ 121,270 $ 120,441 Interest rate spread(4) 14.31 % 13.91 % Net interest income $ 4,608 $ 4,521 Net interest margin(5) 15.08 % 14.78 % 13 Table of Contents 2026 2025 Six months ended June 30 ($ in millions) Average Balance Interest Income / Expense AverageYield /Rate(1) Average Balance InterestIncome /Expense AverageYield /Rate(1) Assets Interest-earning assets: Interest-earning cash and equivalents(2) $ 18,030 $ 330 3.69 % $ 19,625 $ 431 4.43 % Securities available for sale 3,188 63 3.99 % 3,001 65 4.37 % Loan receivables, including held for sale(3): Credit cards 92,989 10,244 22.22 % 92,345 10,131 22.12 % Consumer installment loans 5,376 375 14.07 % 5,762 418 14.63 % Commercial credit products 2,254 172 15.39 % 1,912 88 9.28 % Other 79 2 5.11 % 104 3 5.82 % Total loan receivables, including held for sale 100,698 10,793 21.61 % 100,123 10,640 21.43 % Total interest-earning assets 121,916 11,186 18.50 % 122,749 11,136 18.29 % Non-interest-earning assets: Cash and due from banks 960 868 Allowance for credit losses (10,429) (10,866) Other assets 8,216 7,716 Total non-interest-earning assets (1,253) (2,282) Total assets $ 120,663 $ 120,467 Liabilities Interest-bearing liabilities: Interest-bearing deposit accounts $ 81,993 $ 1,537 3.78 % $ 82,191 $ 1,737 4.26 % Borrowings of consolidated securitization entities 8,700 217 5.03 % 8,058 208 5.21 % Senior and subordinated unsecured notes 7,286 189 5.23 % 8,061 206 5.15 % Total interest-bearing liabilities 97,979 1,943 4.00 % 98,310 2,151 4.41 % Non-interest-bearing liabilities: Non-interest-bearing deposit accounts 417 415 Other liabilities 5,580 5,016 Total non-interest-bearing liabilities 5,997 5,431 Total liabilities 103,976 103,741 Equity Total equity 16,687 16,726 Total liabilities and equity $ 120,663 $ 120,467 Interest rate spread(4) 14.50 % 13.88 % Net interest income $ 9,243 $ 8,985 Net interest margin(5) 15.29 % 14.76 % ________________________________________ (1)Average yields/rates are based on annualized total interest income/expense divided by average balances. (2)Includes average restricted cash balances of $691 million and $642 million for the three months ended June 30, 2026 and 2025, respectively, and $377 million and $666 million for the six months ended June 30, 2026 and 2025, respectively. (3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $508 million and $560 million for the three months ended June 30, 2026 and 2025, respectively, and $1.1 billion for both of the six months ended June 30, 2026 and 2025. (4)Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. (5)Net interest margin represents annualized net interest income divided by average total interest-earning assets. 14 Table of Contents For a summary description of the composition of our key line items included in our Statements of Earnings, see Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2025 Form 10-K. Interest Income Interest income was flat for the three months ended June 30, 2026 reflecting an increase of 1.0% in interest and fees on loans offset by lower interest income from our liquidity portfolio. Interest income increased $50 million, or 0.4%, for the six months ended June 30, 2026 reflecting an increase of 1.4% in interest and fees on loans, partially offset by lower interest income from our liquidity portfolio. The increases in interest and fees on loans for the three and six months ended June 30, 2026 were primarily driven by growth in average loan receivables, as well as the impact of our product, pricing and policy changes for the six months ended June 30, 2026. Average interest-earning assets Three months ended June 30 ($ in millions) 2026 % 2025 % Loan receivables, including held for sale $ 100,702 82.2 % $ 99,236 80.9 % Liquidity portfolio and other 21,842 17.8 23,473 19.1 Total average interest-earning assets $ 122,544 100.0 % $ 122,709 100.0 % Six months ended June 30 ($ in millions) 2026 % 2025 % Loan receivables, including held for sale $ 100,698 82.6 % $ 100,123 81.6 % Liquidity portfolio and other 21,218 17.4 22,626 18.4 Total average interest-earning assets $ 121,916 100.0 % $ 122,749 100.0 % Average loan receivables, including held for sale, increased 1.5% and 0.6% for the three and six months ended June 30, 2026, respectively, reflecting higher purchase volume, partially offset by the effects of higher payment rates. Purchase volume increased by 8.1% and 6.9% for the three and six months ended June 30, 2026, respectively, primarily reflecting the impacts of partner expansion and higher spend per average active account. Yield on average interest-earning assets The yield on average interest-earning assets increased by one basis point and 21 basis points for the three and six months ended June 30, 2026, respectively. The change in yield for the three months ended June 30, 2026 reflects the impact of the mix of loan receivables as a percentage of interest-earning assets versus the prior year, partially offset by decreases in the yield on both loan receivables and our liquidity portfolio. The loan receivables yield decreased 11 basis points to 21.43% for the three months ended June 30, 2026 primarily driven by lower benchmark rates and lower assessed late fees, partially offset by the impacts of our product, pricing and policy changes. The increase in yield on average interest-earning assets for the six months ended June 30, 2026 was primarily driven by an 18 basis point increase in loan receivables yield, as well as the mix of loan receivables as a percentage of interest-earning assets. The higher loan receivables yield was primarily driven by the impacts of our product, pricing and policy changes, partially offset by the impact of lower benchmark rates and lower assessed late fees. Interest Expense Interest expense decreased by $90 million, or 8.5%, and $208 million, or 9.7%, for the three and six months ended June 30, 2026, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Our cost of funds decreased to 3.96% and 4.00% for the three and six months ended June 30, 2026, respectively, compared to 4.35% and 4.41% for the respective prior year periods. 15 Table of Contents Average interest-bearing liabilities Three months ended June 30 ($ in millions) 2026 % 2025 % Interest-bearing deposit accounts $ 82,279 83.4 % $ 82,014 83.5 % Borrowings of consolidated securitization entities 8,915 9.0 7,926 8.1 Senior and subordinated unsecured notes 7,514 7.6 8,269 8.4 Total average interest-bearing liabilities $ 98,708 100.0 % $ 98,209 100.0 % Six months ended June 30 ($ in millions) 2026 % 2025 % Interest-bearing deposit accounts $ 81,993 83.7 % $ 82,191 83.6 % Borrowings of consolidated securitization entities 8,700 8.9 8,058 8.2 Senior and subordinated unsecured notes 7,286 7.4 8,061 8.2 Total average interest-bearing liabilities $ 97,979 100.0 % $ 98,310 100.0 % Net Interest Income Net interest income increased by $87 million, or 1.9%, and $258 million, or 2.9%, for the three and six months ended June 30, 2026, respectively, resulting from the changes in interest income and interest expense discussed above. Retailer Share Arrangements Retailer share arrangements increased by $35 million, or 3.5%, and $210 million, or 11.1%, for the three and six months ended June 30, 2026, respectively, reflecting program performance, which included lower net charge-offs, and the impact of our product, pricing and policy changes, as well as higher purchase volume. Provision for Credit Losses Provision for credit losses increased by $55 million, or 4.8%, and decreased by $101 million, or 3.8%, for the three and six months ended June 30, 2026, respectively. The increase in the three months ended June 30, 2026 was primarily driven by a lower reserve release in the current year period, partially offset by lower net charge-offs. The decrease in the six months ended June 30, 2026 was primarily driven by lower net charge-offs, partially offset by a lower reserve release in the current year period. The reserve releases for the three and six months ended June 30, 2026 were $163 million and $174 million, respectively, as compared to reserve releases of $265 million and $362 million in the respective prior year periods. Net charge-offs for the three and six months ended June 30, 2026 decreased by $47 million and $289 million, respectively. The net charge-off rate decreased by 27 basis points and 61 basis points for the three and six months ended June 30, 2026, respectively, to 5.43% for both periods, and we expect our net charge-off rate for the year ended December 31, 2026 will be below our long-term target range of 5.5% to 6.0%. Other Income Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Interchange revenue $ 300 $ 268 $ 564 $ 506 Protection product revenue 161 144 322 291 Loyalty programs (436) (360) (797) (671) Other 112 66 181 141 Total other income $ 137 $ 118 $ 270 $ 267 Other income increased by $19 million, or 16.1%, and $3 million, or 1.1%, for the three and six months ended June 30, 2026, respectively. 16 Table of Contents The increases in the three and six months ended June 30, 2026 were primarily driven by increases in other income, interchange revenue, and protection product revenue. These increases were partially offset by higher loyalty costs. During the three months ended June 30, 2026, we participated in the Visa exchange offer, which included the exchange of Visa Class B-2 common stock for Visa Class C common stock, which was recorded at fair value. The increases in other income for the three and six months ended June 30, 2026 were driven primarily by a gain of $30 million related to the exchange of Visa Class B-2 common stock. Other Expense Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Employee costs $ 516 $ 509 $ 1,031 $ 1,015 Professional fees 220 236 429 453 Marketing and business development 137 127 251 243 Information processing 248 215 510 434 Other 210 158 426 343 Total other expense $ 1,331 $ 1,245 $ 2,647 $ 2,488 Other expense increased by $86 million, or 6.9%, and $159 million, or 6.4%, for the three and six months ended June 30, 2026, respectively. The increases for the three and six months ended June 30, 2026 were driven by higher other expense and information processing costs, reflecting increased operational losses and costs related to technology investments. Provision for Income Taxes Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Effective tax rate 25.4 % 23.0 % 24.3 % 23.0 % Provision for income taxes $ 301 $ 289 $ 543 $ 516 The effective tax rate for the three and six months ended June 30, 2026 increased compared to the same periods in the prior year primarily due to tax benefits recognized in the prior year related to the remeasurement of deferred tax assets for increases in state tax rates. The effective tax rate differs from the applicable U.S. federal statutory tax rate primarily due to state income taxes. 17 Table of Contents Platform Analysis As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). The following is a discussion of certain supplemental information for the three and six months ended June 30, 2026, for each of our five sales platforms and Corp, Other. Home & Auto Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Purchase volume $ 12,120 $ 11,459 $ 21,563 $ 20,905 Period-end loan receivables $ 30,351 $ 30,374 $ 30,351 $ 30,374 Average loan receivables, including held for sale $ 29,868 $ 30,137 $ 29,619 $ 30,472 Average active accounts (in thousands) 17,383 17,831 17,176 17,899 Interest and fees on loans $ 1,394 $ 1,395 $ 2,773 $ 2,797 Other income $ 63 $ 52 $ 118 $ 108 Home & Auto interest and fees on loans remained flat for the three months ended June 30, 2026 and decreased by $24 million, or 0.9%, for the six months ended June 30, 2026, reflecting lower average loan receivables, offset by higher loan receivables yield. The decrease in average loan receivables was primarily driven by higher payment rates, partially offset by the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio. The increase in loan receivables yield reflects the impact of product, pricing and policy changes, partially offset by lower late fee incidence. Purchase volume increased by 5.8% and 3.1% for the three and six months ended June 30, 2026, respectively, primarily reflecting the performance of new programs. Average active accounts decreased by 2.5% and 4.0% for the three and six months ended June 30, 2026, respectively. Other income increased by $11 million, or 21.2%, and $10 million, or 9.3%, for the three and six months ended June 30, 2026, respectively, primarily due to higher protection product revenue and higher interchange revenue, partially offset by higher loyalty costs. Digital Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Purchase volume $ 14,897 $ 13,647 $ 28,396 $ 26,126 Period-end loan receivables $ 29,011 $ 27,786 $ 29,011 $ 27,786 Average loan receivables, including held for sale $ 28,538 $ 27,571 $ 28,780 $ 27,892 Average active accounts (in thousands) 20,662 20,368 20,962 20,554 Interest and fees on loans $ 1,604 $ 1,576 $ 3,236 $ 3,120 Other income $ (5) $ — $ 4 $ 9 Digital interest and fees on loans increased by $28 million, or 1.8%, and $116 million, or 3.7% for the three and six months ended June 30, 2026, respectively, primarily driven by higher average loan receivables, partially offset by lower benchmark rates. Purchase volume increased by 9.2% and 8.7% for the three and six months ended June 30, 2026, respectively, primarily reflecting strong performance across partners with broad diversified offerings which drove both higher spend per average active account and higher average active accounts. Average active accounts increased by 1.4% and 2.0% for the three and six months ended June 30, 2026, respectively. 18 Table of Contents Diversified & Value Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Purchase volume $ 17,200 $ 15,393 $ 32,126 $ 29,125 Period-end loan receivables $ 20,770 $ 19,510 $ 20,770 $ 19,510 Average loan receivables, including held for sale $ 20,348 $ 19,338 $ 20,289 $ 19,504 Average active accounts (in thousands) 20,160 19,471 20,329 19,858 Interest and fees on loans $ 1,177 $ 1,159 $ 2,372 $ 2,337 Other income $ (51) $ (3) $ (69) $ (3) Diversified & Value interest and fees on loans increased by $18 million, or 1.6%, and $35 million, or 1.5%, for the three and six months ended June 30, 2026, respectively, primarily driven by higher average loan receivables reflecting the impact of partner expansion, partially offset by decreases in loan receivables yield primarily reflecting lower benchmark rates and lower late fee incidence. Purchase volume increased 11.7% and 10.3%, for the three and six months ended June 30, 2026, respectively, primarily reflecting the impact of partner expansion, as well as higher gas sales. Average active accounts increased by 3.5% and 2.4% for the three and six months ended June 30, 2026, respectively. Other income decreased by $48 million and $66 million, for the three and six months ended June 30, 2026, respectively, primarily due to higher loyalty costs, partially offset by higher interchange revenue. Health & Wellness Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Purchase volume $ 4,092 $ 4,007 $ 7,963 $ 7,781 Period-end loan receivables $ 15,390 $ 15,309 $ 15,390 $ 15,309 Average loan receivables, including held for sale $ 15,296 $ 15,215 $ 15,335 $ 15,247 Average active accounts (in thousands) 7,580 7,697 7,631 7,740 Interest and fees on loans $ 948 $ 923 $ 1,896 $ 1,837 Other income $ 82 $ 66 $ 162 $ 141 Health & Wellness interest and fees on loans increased by $25 million, or 2.7%, and $59 million, or 3.2%, for the three and six months ended June 30, 2026, respectively, primarily driven by increases in loan receivables yield, reflecting the impact of product, pricing and policy changes. Purchase volume increased 2.1% and 2.3% for the three and six months ended June 30, 2026, respectively, reflecting growth in Pet, partially offset by lower spend in Cosmetic. The increase in the six months ended June 30, 2026 also reflected growth in Audiology. In addition, higher spend per average active account exceeded the impact of lower average active accounts. Average active accounts decreased 1.5% and 1.4% for the three and six months ended June 30, 2026, respectively. Other income increased by $16 million, or 24.2%, and $21 million, or 14.9%, for the three and six months ended June 30, 2026, respectively, primarily due to higher protection product revenue, lower loyalty costs and higher interchange revenue. 19 Table of Contents Lifestyle Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Purchase volume $ 1,518 $ 1,432 $ 2,763 $ 2,600 Period-end loan receivables $ 6,613 $ 6,673 $ 6,613 $ 6,673 Average loan receivables, including held for sale $ 6,561 $ 6,646 $ 6,584 $ 6,681 Average active accounts (in thousands) 2,539 2,531 2,569 2,598 Interest and fees on loans $ 256 $ 261 $ 514 $ 522 Other income $ 12 $ 9 $ 23 $ 19 Lifestyle interest and fees on loans decreased by $5 million, or 1.9%, and $8 million, or 1.5%, for the three and six months ended June 30, 2026, respectively, primarily driven by lower average loan receivables and lower benchmark rates. Purchase volume increased by 6.0% and 6.3% for the three and six months ended June 30, 2026, respectively, primarily reflecting higher spend in Other Apparel and Goods and Luxury and the performance of new programs, partially offset by lower spend in Outdoors. Average active accounts increased 0.3% and decreased 1.1% for the three and six months ended June 30, 2026, respectively. Corp, Other Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Purchase volume $ — $ 146 $ — $ 267 Period-end loan receivables $ 73 $ 124 $ 73 $ 124 Average loan receivables, including held for sale $ 91 $ 329 $ 91 $ 327 Average active accounts (in thousands) 17 152 18 161 Interest and fees on loans $ 1 $ 14 $ 2 $ 27 Other income $ 36 $ (6) $ 32 $ (7) Other income increased by $42 million and $39 million for the three and six months ended June 30, 2026, primarily driven by a gain of $30 million related to the exchange of Visa Class B-2 common stock. 20 Table of Contents Loan Receivables ____________________________________________________________________________________________ Loan receivables are our largest category of assets and represent our primary source of revenue. The following discussion provides supplemental information regarding our loan receivables portfolio. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies and Note 4. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for additional information related to our loan receivables. The following table sets forth the composition of our loan receivables portfolio by product type at the dates indicated: ($ in millions) At June 30, 2026 % At December 31, 2025 % Loan receivables Credit cards $ 94,233 92.2 % $ 96,346 92.8 % Consumer installment loans 5,233 5.1 5,548 5.3 Commercial credit products 2,681 2.6 1,833 1.8 Other 61 0.1 81 0.1 Total loan receivables $ 102,208 100.0 % $ 103,808 100.0 % Loan receivables decreased 1.5% to $102.2 billion at June 30, 2026, compared to $103.8 billion at December 31, 2025, primarily driven by the seasonality of our business and the effects of higher payment rates, partially offset by higher purchase volume, including the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio. Loan receivables increased 2.4% to $102.2 billion at June 30, 2026, compared to $99.8 billion at June 30, 2025 reflecting higher purchase volume, including the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio, partially offset by the effects of higher payment rates. Our loan receivables portfolio had the following geographic concentration at June 30, 2026: ($ in millions) Loan Receivables Outstanding % of Total Loan Receivables Outstanding State Texas $ 11,299 11.1 % California $ 10,352 10.1 % Florida $ 9,587 9.4 % New York $ 4,783 4.7 % North Carolina $ 4,339 4.2 % Delinquencies Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased by 2 basis points to 4.16% at June 30, 2026 from 4.18% at June 30, 2025, and decreased by 33 basis points from 4.49% at December 31, 2025. Net Charge-Offs Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine are uncollectible, net of recovered amounts. We exclude accrued and unpaid finance charges and fees and third-party fraud losses from charge-offs. Charged-off and recovered finance charges and fees are included in Interest and fees on loans while third-party fraud losses are included in Other expense. Charge-offs are recorded as a reduction to the Allowance for credit losses and subsequent recoveries of previously charged-off amounts are credited to the Allowance for credit losses. Costs incurred to recover charged-off loans are recorded as collection expense and included in Other expense in our Condensed Consolidated Statements of Earnings. 21 Table of Contents The tables below set forth the net charge-offs and ratio of annualized net charge-offs to average loan receivables, including held for sale, (“net charge-off rate”) for the periods indicated: Three months ended June 30, 2026 2025 ($ in millions) Amount Rate Amount Rate Credit cards $ 1,236 5.34 % $ 1,304 5.72 % Consumer installment loans 96 7.28 % 77 5.43 % Commercial credit products 32 5.00 % 30 6.07 % Other — — % — — % Total net charge-offs $ 1,364 5.43 % $ 1,411 5.70 % Six months ended June 30, 2026 2025 ($ in millions) Amount Rate Amount Rate Credit cards $ 2,469 5.35 % $ 2,766 6.04 % Consumer installment loans 179 6.71 % 170 5.95 % Commercial credit products 62 5.64 % 63 6.64 % Other — — % — — % Total net charge-offs $ 2,710 5.43 % $ 2,999 6.04 % Allowance for Credit Losses The allowance for credit losses totaled $10.3 billion at June 30, 2026, compared to $10.4 billion at December 31, 2025, and $10.6 billion at June 30, 2025, and reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statements of Financial Position. The decreases in allowance for credit losses compared to December 31, 2025 and June 30, 2025 were primarily driven by continued asset quality trends that reflect the impact of prior credit actions and elevated customer payment rates, as well as expectations of the macroeconomic environment. Our allowance for credit losses as a percentage of total period-end loan receivables increased to 10.09% at June 30, 2026, from 10.06% at December 31, 2025 and decreased from 10.59% at June 30, 2025. See Note 4. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for additional information. 22 Table of Contents Funding, Liquidity and Capital Resources ____________________________________________________________________________________________ We maintain a strong focus on liquidity and capital. Our funding, liquidity and capital policies are designed to ensure that our business has the liquidity and capital resources to support our daily operations, our business growth, our credit ratings and our regulatory and policy requirements, in a cost effective and prudent manner through expected and unexpected market environments. Funding Sources Our primary funding sources include cash from operations, deposits (direct and brokered deposits), securitized financings and senior and subordinated unsecured notes. The following tables summarize information concerning our funding sources during the periods indicated: 2026 2025 Three months ended June 30 ($ in millions) Average Balance % Average Rate Average Balance % Average Rate Deposits(1) $ 82,279 83.4 % 3.7 % $ 82,014 83.5 % 4.2 % Securitized financings 8,915 9.0 5.0 % 7,926 8.1 5.3 % Senior and subordinated unsecured notes 7,514 7.6 5.2 % 8,269 8.4 5.1 % Total $ 98,708 100.0 % 4.0 % $ 98,209 100.0 % 4.3 % ______________________ (1)Excludes $419 million and $412 million average balance of non-interest-bearing deposits for the three months ended June 30, 2026 and 2025, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the three months ended June 30, 2026 and 2025. 2026 2025 Six months ended June 30 ($ in millions) Average Balance % Average Rate Average Balance % Average Rate Deposits(1) $ 81,993 83.7 % 3.8 % $ 82,191 83.6 % 4.3 % Securitized financings 8,700 8.9 5.0 % 8,058 8.2 5.2 % Senior and subordinated unsecured notes 7,286 7.4 5.2 % 8,061 8.2 5.2 % Total $ 97,979 100.0 % 4.0 % $ 98,310 100.0 % 4.4 % ______________________ (1)Excludes $417 million and $415 million average balance of non-interest-bearing deposits for the six months ended June 30, 2026 and 2025, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the six months ended June 30, 2026 and 2025. Deposits We obtain deposits directly from retail customers, affinity relationships and commercial customers (“direct deposits”) and through third-party firms that offer our deposits to their customers (“brokered deposits”). At June 30, 2026, we had $76.7 billion in direct deposits and $6.1 billion in brokered deposits consisting of certificates of deposit and network deposit sweeps procured through a program arranger that channels account deposits to us. A key part of our liquidity plan and funding strategy is to continue to utilize our direct deposit base as a source of stable and diversified low-cost funding. Our direct deposits are primarily from retail customers and include a range of FDIC-insured deposit products, including certificates of deposit, IRAs, money market accounts, savings accounts and affinity deposits. Brokered deposits are primarily from retail customers of large brokerage firms. We have relationships with multiple brokers that offer our deposits through their networks. Our brokered deposits primarily consist of certificates of deposit that bear interest at a fixed rate. These deposits generally are not subject to early withdrawal. 23 Table of Contents Our ability to attract deposits is sensitive to, among other things, the interest rates we pay, and therefore, we bear funding risk if we fail to pay higher rates, or interest rate risk if we are required to pay higher rates, to retain existing deposits or attract new deposits. To mitigate these risks, our funding strategy includes a range of deposit products, and we seek to maintain access to multiple other funding sources, such as securitized financings (including our undrawn committed and uncommitted capacity) and unsecured debt. The following tables summarize certain information regarding our interest-bearing deposits by type (all of which constitute U.S. deposits) for the periods indicated: Three months ended June 30 ($ in millions) 2026 2025 Average Balance % Average Rate Average Balance % Average Rate Direct deposits: Certificates of deposit (including IRA certificates of deposit) $ 43,582 53.0 % 4.0 % $ 40,163 49.0 % 4.4 % Savings, money market, and demand accounts 33,046 40.1 3.4 % 33,270 40.6 3.9 % Brokered deposits 5,651 6.9 4.0 % 8,581 10.4 4.5 % Total interest-bearing deposits $ 82,279 100.0 % 3.7 % $ 82,014 100.0 % 4.2 % Six months ended June 30 ($ in millions) 2026 2025 Average Balance % Average Rate Average Balance % Average Rate Direct deposits: Certificates of deposit (including IRA certificates of deposit) $ 43,255 52.8 % 4.0 % $ 40,499 49.3 % 4.5 % Savings, money market, and demand accounts 32,970 40.2 3.4 32,601 39.7 3.9 % Brokered deposits 5,768 7.0 4.0 9,091 11.0 4.4 % Total interest-bearing deposits $ 81,993 100.0 % 3.8 % $ 82,191 100.0 % 4.3 % Our deposit liabilities provide funding with maturities ranging from one day to ten years. At June 30, 2026, the weighted average maturity of our interest-bearing time deposits was approximately one year. See Note 7. Deposits to our condensed consolidated financial statements for more information on the maturities of our time deposits. The standard FDIC deposit insurance amount is $250,000 per depositor, for each account ownership category. Our estimate of the uninsured portion of total deposit balances, excluding any intercompany balance, at June 30, 2026 was $7.1 billion. The following table summarizes the portion of uninsured deposits that are certificates of deposit by contractual maturity at June 30, 2026: ($ in millions) 3 Months or Less Over 3 Months but within 6 Months Over 6 Months but within 12 Months Over 12 Months Total Certificates of deposit (including IRA certificates of deposit) $ 1,031 $ 794 $ 1,516 $ 1,073 $ 4,414 Securitized Financings We access the asset-backed securitization market using the Synchrony Card Issuance Trust (“SYNIT”) through which we may issue asset-backed securities through both public transactions and private transactions funded by financial institutions and commercial paper conduits. In addition, we issue asset-backed securities in private transactions through the Synchrony Credit Card Master Note Trust (“SYNCT”) and the Synchrony Sales Finance Master Trust (“SFT”). 24 Table of Contents The following table summarizes expected contractual maturities of the investors’ interests in securitized financings, excluding debt premiums, discounts and issuance costs at June 30, 2026: ($ in millions) Less ThanOne Year(2) One Year Through Three Years Four Years Through Five Years After Five Years Total Scheduled maturities of borrowings—owed to securitization investors: SYNCT $ 1,050 $ 600 $ — $ — $ 1,650 SFT 300 975 — — 1,275 SYNIT(1) 2,500 3,500 — — 6,000 Total borrowings—owed to securitization investors $ 3,850 $ 5,075 $ — $ — $ 8,925 ______________________ (1)Excludes any subordinated classes of SYNIT notes that we owned at June 30, 2026. (2)Includes $1.0 billion of fixed securitized borrowings which matured and were repaid in July 2026. We retain exposure to the performance of trust assets through: (i) in the case of SYNCT, SFT and SYNIT, subordinated retained interests in the loan receivables transferred to the trust in excess of the principal amount of the notes for a given series that provide credit enhancement for a particular series, as well as a pari passu seller’s interest in each trust and (ii) in the case of SYNIT, any subordinated classes of notes that we own. All of our securitized financings include early repayment triggers, referred to as early amortization events. The occurrence of an early amortization event would limit or terminate our ability to issue future series out of the trust in which the early amortization event occurred. No early amortization event has occurred with respect to any of the securitized financings in SYNCT, SFT or SYNIT. For more information related to early amortization events with respect to our securitized financings, see "Funding, Liquidity and Capital Resources—Securitized Financings" in our 2025 Form 10-K. The following table summarizes for each of our trusts the three-month rolling average excess spread at June 30, 2026: Note Principal Balance ($ in millions) # of Series Outstanding Three-Month RollingAverage ExcessSpread(1) SYNCT $ 1,650 3 ~ 16.6% to 17.1% SFT $ 1,275 5 13.8 % SYNIT $ 6,000 1 16.9 % ______________________ (1)Represents the excess spread (generally calculated as interest income collected from the applicable pool of loan receivables less applicable net charge-offs, interest expense and servicing costs, divided by the aggregate principal amount of loan receivables in the applicable pool) for SFT or, in the case of SYNCT, a range of the excess spreads relating to the particular series issued within such trust or, in the case of SYNIT, the excess spread relating to the one outstanding series issued within such trust, in all cases omitting any series that have not been outstanding for at least three full monthly periods and calculated in accordance with the applicable trust or series documentation, for the three securitization monthly periods ended June 30, 2026. 25 Table of Contents Senior and Subordinated Unsecured Notes The following table provides a summary of our outstanding senior and subordinated unsecured notes at June 30, 2026, which includes $750 million of senior unsecured notes issued by Synchrony Financial in February 2026: Issuance Date Interest Rate(1) Interest Rate Reset Date Floating Rate Spread(2) Maturity Principal Amount Outstanding(3) ($ in millions) Fixed rate senior unsecured notes: Synchrony Financial August 2016 3.700% — — August 2026 500 December 2017 3.950% — — December 2027 1,000 March 2019 5.150% — — March 2029 650 October 2021 2.875% — — October 2031 750 Synchrony Bank August 2022 5.625% — — August 2027 600 Fixed-to-floating rate senior unsecured notes: Synchrony Financial August 2024 5.935% August 2, 2029 213 bps August 2030 750 March 2025 5.450% March 6, 2030 168 bps March 2031 800 July 2025 5.019% July 29, 2028 139.5 bps July 2029 500 July 2025 6.000% July 29, 2035 207 bps July 2036 500 February 2026 4.947% February 25, 2031 153 bps February 2032 750 Fixed rate subordinated unsecured notes: Synchrony Financial February 2023 7.250% — — February 2033 750 Total senior and subordinated unsecured notes $ 7,550 ______________________ (1)Weighted average interest rate of all senior and subordinated unsecured notes at June 30, 2026 was 5.05%. (2)Floating rate applicable at interest reset date through maturity, based on compounded Secured Overnight Financing Rate plus floating rate spread noted above. (3)The amounts shown exclude unamortized debt discounts, premiums and issuance costs. Short-Term Borrowings Except as described above, there were no material short-term borrowings for the periods presented. Covenants The indentures pursuant to which our senior and subordinated unsecured notes have been issued include various covenants. If we do not satisfy any of these covenants, the maturity of amounts outstanding thereunder may be accelerated and become payable. We were in compliance with all of these covenants at June 30, 2026. At June 30, 2026, we were not in default under any of our credit facilities. 26 Table of Contents Credit Ratings Our borrowing costs and capacity in certain funding markets, including securitizations and senior and subordinated debt, may be affected by the credit ratings of the Company, the Bank and the ratings of our asset-backed securities. The table below reflects our current credit ratings and outlooks: S&P Fitch Ratings Synchrony Financial Senior unsecured debt BBB- BBB Subordinated unsecured debt BB+ BBB- Preferred stock BB- BB- Outlook for Synchrony Financial Positive Stable Synchrony Bank Senior unsecured debt BBB BBB Outlook for Synchrony Bank Positive Stable In addition, certain of the asset-backed securities issued by SYNIT are rated by Fitch, S&P and/or Moody’s. A credit rating is not a recommendation to buy, sell or hold securities, may be subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating. Downgrades in these credit ratings could materially increase the cost of our funding from, and restrict our access to, the capital markets. Liquidity ____________________________________________________________________________________________ We seek to ensure that we have adequate liquidity to sustain business operations, fund asset growth, satisfy debt obligations and to meet regulatory expectations under normal and stress conditions. We maintain policies outlining the overall framework and general principles for managing liquidity risk across our business, which is the responsibility of our Asset and Liability Management Committee, a management committee under the oversight of the Risk Committee of our Board of Directors. We employ a variety of metrics to monitor and manage liquidity. We perform regular liquidity stress testing and contingency planning as part of our liquidity management process. We evaluate a range of stress scenarios including Company specific and systemic events that could impact funding sources and our ability to meet liquidity needs. We maintain a liquidity portfolio, which at June 30, 2026 had $19.8 billion of liquid assets, primarily consisting of cash and equivalents, less cash in transit which is not considered to be liquid, compared to $16.6 billion of liquid assets at December 31, 2025. The increase in liquid assets was primarily due to deposit growth, issuances of senior unsecured debt, securitized debt and preferred stock, as well as the seasonality of our business. We believe our liquidity position at June 30, 2026 remains strong as we continue to operate in a period of uncertain economic conditions and we will continue to closely monitor our liquidity as economic conditions change. As a general matter, investments included in our liquidity portfolio are expected to be highly liquid, giving us the ability to readily convert them to cash. The level and composition of our liquidity portfolio may fluctuate based upon the level of expected maturities of our funding sources as well as operational requirements and market conditions. We also have access to several additional sources of liquidity beyond our liquidity portfolio. At June 30, 2026, we had an aggregate of $13.1 billion of available borrowing capacity through the Federal Reserve’s discount window. In addition, we had $2.6 billion of undrawn capacity on our securitized financings, subject to customary borrowing conditions, from private lenders under our securitization programs, of which $2.1 billion was committed and $450 million was uncommitted. We also have other unencumbered assets in the Bank available to be used to generate additional liquidity through secured borrowings or asset sales or to be pledged to the Federal Reserve Board for credit at the discount window. 27 Table of Contents We rely significantly on dividends and other distributions and payments from the Bank for liquidity; however, bank regulations, contractual restrictions and other factors limit the amount of dividends and other distributions and payments that the Bank may pay to us. For a discussion of regulatory restrictions related to the Bank’s ability to pay dividends, see “Regulation—Risk Factors Relating to Regulation—We are subject to restrictions that limit our ability to pay dividends and repurchase our common stock; the Bank is subject to restrictions that limit its ability to pay dividends to us, which could limit our ability to pay dividends, repurchase our common stock or make payments on our indebtedness,” “Regulation—Regulation Relating to Our Business—Savings Association Regulation—Dividends and Stock Repurchases” and —Liquidity," and "Regulation—Savings and Loan Holding Company Regulation—Liquidity" in our 2025 Form 10-K. Capital ____________________________________________________________________________________________ Our primary sources of capital have been earnings generated by our business and existing equity capital. We seek to manage capital to a level and composition sufficient to support the risks of our business, meet regulatory requirements, adhere to rating agency targets and support future business growth. The level, composition and utilization of capital are influenced by changes in the economic environment, strategic initiatives and legislative and regulatory developments. Within these constraints, we are focused on deploying capital in a manner that will provide attractive returns to our stockholders. We are subject to the Federal Reserve Board's formal capital plan submission requirements and submitted our 2026 capital plan to the Federal Reserve Board. We are also subject to supervisory stress tests on a biennial basis, in even calendar years, and the 2026 supervisory stress test was the first stress test in which we participated. In February 2026, the Federal Reserve Board voted to maintain banking organizations’ current stress capital buffer requirements until 2027 at the earliest. As a result, following completion of the 2026 supervisory stress test, we remain subject to our initial stress capital buffer of 2.5% and as we are only subject to supervisory stress tests on a biennial basis, we will receive a new stress capital buffer in 2028. For more information, see “Regulation—Savings and Loan Holding Company Regulation” in our 2025 Form 10-K. Dividend and Share Repurchases Common Stock Cash Dividends Declared Month of Payment Amount per Common Share Amount Three months ended ($ in millions, except per share data) March 31, 2026 February 2026 $ 0.30 $ 104 June 30, 2026 May 2026 0.30 100 Total dividends declared $ 0.60 $ 204 Series A Series B Preferred Stock Cash Dividends Declared Month of Payment Amount per Preferred Share Amount Amount per Preferred Share Amount Three months ended ($ in millions, except per share data) March 31, 2026 February 2026 $ 14.06 $ 10 $ 20.63 $ 11 June 30, 2026 May 2026 14.06 11 20.63 10 Total dividends declared $ 28.12 $ 21 $ 41.26 $ 21 In April 2026, the Board approved an increase of our quarterly dividend to $0.34 per common share commencing in the third quarter of 2026. In addition, in June 2026, we issued depositary shares representing $500 million of 7.250% fixed rate reset non-cumulative perpetual preferred stock, Series C, with dividends payable quarterly beginning in August 2026. The declaration and payment of future dividends to holders of our common and preferred stock will be at the discretion of the Board and will depend on many factors. 28 Table of Contents Common Shares Repurchased Under Publicly Announced Programs Total Number of Shares Purchased Dollar Value of Shares Purchased Three months ended ($ and shares in millions) March 31, 2026 12.5 $ 900 June 30, 2026 11.7 850 Total 24.2 $ 1,750 In April 2026, the Company announced that the Board approved a new share repurchase program of up to $6.5 billion of the Company’s common stock, which commenced in the second quarter of 2026 and, in a change from our prior share repurchase programs, does not have an expiration date (the "2026 program"). The new share repurchase program replaced the Company’s prior program, which was scheduled to expire on June 30, 2026. At June 30, 2026, we had a total remaining share repurchase authorization of $5.7 billion under the 2026 program. The pace and amount of share repurchases under the program are flexible, and will be executed from time to time subject to various factors, including capital levels, financial performance, market conditions and legal and regulatory requirements, and in accordance with our capital plans. The Company's share repurchase program may be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans, and may be modified, suspended or terminated at any time. For a discussion of regulatory and other restrictions on our ability to pay dividends and repurchase stock, see “Regulation—Risk Factors Relating to Regulation—We are subject to restrictions that limit our ability to pay dividends and repurchase our common stock; the Bank is subject to restrictions that limit its ability to pay dividends to us, which could limit our ability to pay dividends, repurchase our common stock or make payments on our indebtedness” in our 2025 Form 10-K. Regulatory Capital Requirements - Synchrony Financial For Synchrony Financial to be a well-capitalized savings and loan holding company, Synchrony Bank must be well-capitalized and Synchrony Financial must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board to meet and maintain a specific capital level for any capital measure. At June 30, 2026, Synchrony Financial met all minimum capital ratio requirements and the requirements to be deemed well-capitalized. The following table sets forth the composition of our capital ratios for the Company calculated under the Basel III Standardized Approach rules at June 30, 2026 and December 31, 2025, respectively: At June 30, 2026 At December 31, 2025(1) ($ in millions) Amount Ratio(2) Amount Ratio(2) Total risk-based capital $ 17,782 16.9 % $ 17,691 16.7 % Tier 1 risk-based capital $ 15,616 14.9 % $ 15,512 14.6 % Tier 1 leverage $ 15,616 13.0 % $ 15,512 13.3 % Common equity Tier 1 capital $ 13,900 13.2 % $ 14,290 13.5 % Risk-weighted assets $ 104,969 $ 105,934 ______________________ (1)Amounts and ratios at December 31, 2025 have been recast to reflect the change in presentation of internal-use capitalized software on our Condensed Consolidated Statements of Financial Position. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our condensed consolidated financial statements for additional information. (2)Tier 1 leverage ratio represents total Tier 1 capital as a percentage of total average assets, after certain adjustments. All other ratios presented above represent the applicable capital measure as a percentage of risk-weighted assets. The decrease in our common equity Tier 1 capital ratio compared to December 31, 2025 was primarily due to share repurchases and common and preferred dividends in the six months ended June 30, 2026, partially offset by net earnings during the same period. 29 Table of Contents Regulatory Capital Requirements - Synchrony Bank At June 30, 2026 and December 31, 2025, the Bank met all applicable requirements to be deemed well-capitalized pursuant to the Office of the Comptroller of the Currency of the U.S. Treasury (the “OCC”) regulations and for purposes of the Federal Deposit Insurance Act. The following table sets forth the composition of the Bank’s capital ratios calculated under the Basel III Standardized Approach rules at June 30, 2026 and December 31, 2025: At June 30, 2026 At December 31, 2025(1) ($ in millions) Amount Ratio(2) Amount Ratio(2) Total risk-based capital $ 16,427 16.5 % $ 16,162 16.1 % Tier 1 risk-based capital $ 14,321 14.4 % $ 14,045 14.0 % Tier 1 leverage $ 14,321 12.6 % $ 14,045 12.7 % Common equity Tier 1 capital $ 14,321 14.4 % $ 14,045 14.0 % ______________________ (1)Amounts and ratios at December 31, 2025 have been recast to reflect the change in presentation of internal-use capitalized software on our Condensed Consolidated Statements of Financial Position. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our condensed consolidated financial statements for additional information. (2)Tier 1 leverage ratio represents total Tier 1 capital as a percentage of total average assets, after certain adjustments. All other ratios presented above represent the applicable capital measure as a percentage of risk-weighted assets. For additional information on the minimum capital requirements for both Synchrony Financial and the Bank, See “Regulation—Regulation Relating to Our Business—Capital" for both Savings and Loan Holding Company Regulation and Savings Association Regulation, as applicable in our 2025 Form 10-K. Failure to meet minimum capital requirements can result in the initiation of 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 business, results of operations and financial condition. See “Regulation—Risk Factors Relating to Regulation—Failure by Synchrony and the Bank to meet applicable capital adequacy and liquidity requirements could have a material adverse effect on us” in our 2025 Form 10-K. Off-Balance Sheet Arrangements and Unfunded Lending Commitments ____________________________________________________________________________________________ We do not have any material off-balance sheet arrangements, including guarantees of third-party obligations. Guarantees are contracts or indemnification agreements that contingently require us to make a guaranteed payment or perform an obligation to a third-party based on certain trigger events. At June 30, 2026, we had not recorded any contingent liabilities in our Condensed Consolidated Statements of Financial Position related to any guarantees. See Note 5. Variable Interest Entities to our condensed consolidated financial statements for more information on our investment commitments for unconsolidated variable interest entities. We extend credit, primarily arising from agreements with customers for unused lines of credit on our credit cards, in the ordinary course of business. Each unused credit card line is unconditionally cancellable by us. See Note 4. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for more information on our unfunded lending commitments. Critical Accounting Estimates ____________________________________________________________________________________________ In preparing our condensed consolidated financial statements, we have identified certain accounting estimates and assumptions that we consider to be the most critical to an understanding of our financial statements because they involve significant judgments and uncertainties. The critical accounting estimates we have identified relate to allowance for credit losses and fair value measurements. These estimates reflect our best judgment about current, and for some estimates future, economic and market conditions and their effects based on information available as of the date of these financial statements. If these conditions change from those expected, it is reasonably possible that these judgments and estimates could change, which may result in incremental losses on loan receivables, or material changes to our Condensed Consolidated Statements of Financial Position, among other effects. See “Management's Discussion and Analysis—Critical Accounting Estimates” in our 2025 Form 10-K, for a detailed discussion of these critical accounting estimates. 30 Table of Contents New Accounting Standards ____________________________________________________________________________________________ See Note 2. Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Standards, to our condensed consolidated financial statements for additional information related to recent accounting pronouncements. Regulation and Supervision ____________________________________________________________________________________________ Our business, including our relationships with our customers, is subject to regulation, supervision and examination under U.S. federal, state and foreign laws and regulations. These laws and regulations cover all aspects of our business, including lending and collection practices, treatment of our customers, safeguarding deposits, customer privacy and information security, capital structure, liquidity, dividends and other capital distributions, transactions with affiliates, and conduct and qualifications of personnel. Such laws and regulations directly and indirectly affect key drivers of our profitability, including, for example, capital and liquidity, product offerings, risk management, and costs of compliance. As a savings and loan holding company and a financial holding company, Synchrony is subject to regulation, supervision and examination by the Federal Reserve Board. As a large provider of consumer financial services, we are also subject to regulation, supervision and examination by the CFPB. The Bank is a federally chartered savings association. As such, the Bank is subject to regulation, supervision and examination by the OCC, which is its primary regulator, and by the CFPB. In addition, the Bank, as an insured depository institution, is supervised by the FDIC. On March 19, 2026, the federal banking agencies issued several rulemaking proposals to revise the U.S. regulatory capital framework. If finalized as proposed, the new rule would revise the standardized approach to calculating risk-weighted assets, including a 10% reduction in risk-weighting of retail exposures, and would require Category III and Category IV banking organizations, including Synchrony, to include most elements of accumulated other comprehensive income (“AOCI”) in their common equity Tier 1 capital, thereby requiring all net unrealized gains and losses on holdings of available-for-sale debt securities from changes in fair value to flow through to regulatory capital, the effects of which would be phased in over a five-year transitional period. We are evaluating the potential impacts of the proposals on the Company. On June 25, 2026, the FDIC issued two proposals that would modify certain requirements applicable to the Bank. The first would streamline resolution planning requirements for insured depository institutions by eliminating, among other things, the need for institutions to provide a strategy for their own resolution and to provide interim resolution plan supplements annually, and also by removing the FDIC’s ability to deem resolution plans, which would be renamed “resolution submissions,” not credible. The second proposal would decrease initial base deposit insurance assessment rates for institutions with total assets of $30 billion or more, including the Bank, by one basis point. This proposal would provide an additional downward adjustment of 0.5 basis points to such an institution’s assessment rate if the institution successfully completed a virtual data room testing exercise, and a further downward adjustment of 0.5 basis points if the institution provided the FDIC with temporary access to certain data service providers and/or internal data systems. We are evaluating the potential impact of these two proposals on the Company. See “Regulation—Regulation Relating to Our Business” in our 2025 Form 10-K for additional information on regulations that apply to us, and “—Capital” above, for discussion of the impact of regulations and supervision on our capital and liquidity, including our ability to pay dividends and repurchase stock. 31 Table of Contents INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ____________________________________________________________________________________________ Page CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Condensed Consolidated Statements of Earnings 33 Condensed Consolidated Statements of Comprehensive Income 34 Condensed Consolidated Statements of Financial Position 35 Condensed Consolidated Statements of Changes in Equity 36 Condensed Consolidated Statements of Cash Flows 38 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1. Business Description 39 Note 2. Basis of Presentation and Summary of Significant Accounting Policies 39 Note 3. Debt Securities 42 Note 4. Loan Receivables and Allowance for Credit Losses 43 Note 5. Variable Interest Entities 49 Note 6. Other Assets 51 Note 7. Deposits 52 Note 8. Borrowings 53 Note 9. Fair Value Measurements 54 Note 10. Regulatory and Capital Adequacy 56 Note 11. Earnings Per Share 58 Note 12. Equity and Other Stock Related Information 58 Note 13. Income Taxes 59 Note 14. Segment Reporting 60 Note 15. Legal Proceedings and Regulatory Matters 61 32 Table of Contents ITEM 1. FINANCIAL STATEMENTS Synchrony Financial and subsidiaries Condensed Consolidated Statements of Earnings (Unaudited) ____________________________________________________________________________________________ Three months ended June 30, Six months ended June 30, ($ in millions, except per share data) 2026 2025 2026 2025 Interest income: Interest and fees on loans (Note 4) $ 5,380 $ 5,328 $ 10,793 $ 10,640 Interest on cash and debt securities 203 258 393 496 Total interest income 5,583 5,586 11,186 11,136 Interest expense: Interest on deposits 767 855 1,537 1,737 Interest on borrowings of consolidated securitization entities 111 104 217 208 Interest on senior and subordinated unsecured notes 97 106 189 206 Total interest expense 975 1,065 1,943 2,151 Net interest income 4,608 4,521 9,243 8,985 Retailer share arrangements (1,027) (992) (2,097) (1,887) Provision for credit losses (Note 4) 1,201 1,146 2,536 2,637 Net interest income, after retailer share arrangements and provision for credit losses 2,380 2,383 4,610 4,461 Other income: Interchange revenue 300 268 564 506 Protection product revenue 161 144 322 291 Loyalty programs (436) (360) (797) (671) Other 112 66 181 141 Total other income 137 118 270 267 Other expense: Employee costs 516 509 1,031 1,015 Professional fees 220 236 429 453 Marketing and business development 137 127 251 243 Information processing 248 215 510 434 Other 210 158 426 343 Total other expense 1,331 1,245 2,647 2,488 Earnings before provision for income taxes 1,186 1,256 2,233 2,240 Provision for income taxes (Note 13) 301 289 543 516 Net earnings $ 885 $ 967 $ 1,690 $ 1,724 Net earnings available to common stockholders $ 864 $ 946 $ 1,648 $ 1,682 Earnings per share (Note 11) Basic $ 2.61 $ 2.51 $ 4.89 $ 4.42 Diluted $ 2.59 $ 2.50 $ 4.85 $ 4.38 See accompanying notes to condensed consolidated financial statements. 33 Table of Contents Synchrony Financial and subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) ____________________________________________________________________________________________ Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Net earnings $ 885 $ 967 $ 1,690 $ 1,724 Other comprehensive income (loss) Debt securities (9) 3 (15) 11 Currency translation adjustments (5) 5 (7) 4 Employee benefit plans and other (1) — (1) (1) Other comprehensive income (loss) (15) 8 (23) 14 Comprehensive income $ 870 $ 975 $ 1,667 $ 1,738 Amounts presented net of taxes. See accompanying notes to condensed consolidated financial statements. 34 Table of Contents Synchrony Financial and subsidiaries Condensed Consolidated Statements of Financial Position (Unaudited) ____________________________________________________________________________________________ ($ in millions) At June 30, 2026 At December 31, 2025 Assets Cash and equivalents $ 16,193 $ 14,973 Debt securities (Note 3) 4,365 2,348 Loan receivables: (Notes 4 and 5) Unsecuritized loans held for investment 80,367 81,408 Restricted loans of consolidated securitization entities 21,841 22,400 Total loan receivables 102,208 103,808 Less: Allowance for credit losses (10,312) (10,442) Loan receivables, net 91,896 93,366 Goodwill 1,363 1,363 Intangible assets, net 152 104 Other assets (Note 6) 7,961 6,941 Total assets $ 121,930 $ 119,095 Liabilities and Equity Deposits: (Note 7) Interest-bearing deposit accounts $ 82,376 $ 80,748 Non-interest-bearing deposit accounts 430 396 Total deposits 82,806 81,144 Borrowings: (Notes 5 and 8) Borrowings of consolidated securitization entities 8,916 8,415 Senior and subordinated unsecured notes 7,516 6,767 Total borrowings 16,432 15,182 Accrued expenses and other liabilities 5,795 6,003 Total liabilities $ 105,033 $ 102,329 Equity: Preferred stock, par value $0.001 per share; 300 million shares authorized, 1.26 million and 1.25 million shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively (Note 12) $ 1,716 $ 1,222 Common stock, par value $0.001 per share; 4.0 billion shares authorized; 834 million shares issued at both June 30, 2026 and December 31, 2025; 325 million and 347 million shares outstanding at June 30, 2026 and December 31, 2025, respectively 1 1 Additional paid-in capital 9,876 9,902 Retained earnings 25,968 24,598 Accumulated other comprehensive income (loss): Debt securities (21) (6) Currency translation adjustments (57) (50) Employee benefit plans and other 7 8 Treasury stock, at cost; 509 million and 487 million shares at June 30, 2026 and December 31, 2025, respectively (20,593) (18,909) Total equity 16,897 16,766 Total liabilities and equity $ 121,930 $ 119,095 See accompanying notes to condensed consolidated financial statements. 35 Table of Contents Synchrony Financial and subsidiaries Condensed Consolidated Statements of Changes in Equity (Unaudited) ____________________________________________________________________________________________ Preferred Stock Common Stock ($ in millions, shares in thousands) Shares Issued Amount Shares Issued Amount Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Equity Balance at January 1, 2025 1,250 $ 1,222 833,985 $ 1 $ 9,853 $ 21,635 $ (59) $ (16,072) $ 16,580 Net earnings — — — — — 757 — — 757 Other comprehensive income (loss) — — — — — — 6 — 6 Purchases of treasury stock — — — — — — — (605) (605) Stock-based compensation — — — — (49) (65) — 75 (39) Dividends - Series A preferred stock ($14.06 per share) — — — — — (11) — — (11) Dividends - Series B preferred stock ($20.63 per share) — — — — — (10) — — (10) Dividends - common stock ($0.25 per share) — — — — — (97) — — (97) Balance at March 31, 2025 1,250 $ 1,222 833,985 $ 1 $ 9,804 $ 22,209 $ (53) $ (16,602) $ 16,581 Net earnings — — — — — 967 — — 967 Other comprehensive income (loss) — — — — — — 8 — 8 Purchases of treasury stock — — — — — — — (504) (504) Stock-based compensation — — — — 32 (5) — 8 35 Dividends - Series A preferred stock ($14.06 per share) — — — — — (10) — — (10) Dividends - Series B preferred stock ($20.63 per share) — — — — — (11) — — (11) Dividends - common stock ($0.30 per share) — — — — — (114) — — (114) Balance at June 30, 2025 1,250 $ 1,222 833,985 $ 1 $ 9,836 $ 23,036 $ (45) $ (17,098) $ 16,952 36 Table of Contents Preferred Stock Common Stock ($ in millions, shares in thousands) Shares Issued Amount Shares Issued Amount Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Equity Balance at January 1, 2026 1,250 $ 1,222 833,985 $ 1 $ 9,902 $ 24,598 $ (48) $ (18,909) $ 16,766 Net earnings — — — — — 805 — — 805 Other comprehensive income (loss) — — — — — — (8) — (8) Purchases of treasury stock — — — — — — — (907) (907) Stock-based compensation — — — — (58) (68) — 72 (54) Dividends - Series A preferred stock($14.06 per share) — — — — — (10) — — (10) Dividends - Series B preferred stock ($20.63 per share) — — — — — (11) — — (11) Dividends - common stock ($0.30 per share) — — — — — (104) — — (104) Balance at March 31, 2026 1,250 $ 1,222 833,985 $ 1 $ 9,844 $ 25,210 $ (56) $ (19,744) $ 16,477 Net earnings — — — — — 885 — — 885 Other comprehensive income (loss) — — — — — — (15) — (15) Issuance of preferred stock 5 494 — — — — — — 494 Purchases of treasury stock — — — — — — — (859) (859) Stock-based compensation — — — — 32 (6) — 10 36 Dividends - Series A preferred stock($14.06 per share) — — — — — (11) — — (11) Dividends - Series B preferred stock($20.63 per share) — — — — — (10) — — (10) Dividends - common stock ($0.30 per share) — — — — — (100) — — (100) Balance at June 30, 2026 1,255 $ 1,716 833,985 $ 1 $ 9,876 $ 25,968 $ (71) $ (20,593) $ 16,897 See accompanying notes to condensed consolidated financial statements. 37 Table of Contents Synchrony Financial and subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) ____________________________________________________________________________________________ Six months ended June 30, ($ in millions) 2026 2025 Cash flows - operating activities Net earnings $ 1,690 $ 1,724 Adjustments to reconcile net earnings to cash provided from operating activities Provision for credit losses 2,536 2,637 Deferred income taxes 34 31 Depreciation and amortization 288 247 All other operating activities 378 280 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions (Increase) decrease in interest and fees receivable (238) (65) (Increase) decrease in other assets 37 (9) Increase (decrease) in accrued expenses and other liabilities (122) (85) Cash provided from (used for) operating activities 4,603 4,760 Cash flows - investing activities Maturity and sales of debt securities 855 1,205 Purchases of debt securities (2,885) (1,006) Acquisition of loan receivables (809) — Net (increase) decrease in loan receivables, including held for sale (436) 1,607 All other investing activities (388) (444) Cash provided from (used for) investing activities (3,663) 1,362 Cash flows - financing activities Borrowings of consolidated securitization entities Proceeds from issuance of securitized debt 498 1,495 Maturities and repayment of securitized debt — (1,000) Senior and subordinated unsecured notes Proceeds from issuance of senior and subordinated unsecured notes 745 794 Maturities and repayment of senior and subordinated unsecured notes — (750) Dividends paid on preferred stock (42) (42) Proceeds from issuance of preferred stock 494 — Net increase (decrease) in deposits 1,659 195 Purchases of treasury stock (1,778) (1,109) Dividends paid on common stock (204) (211) All other financing activities (89) (70) Cash provided from (used for) financing activities 1,283 (698) Increase (decrease) in cash and equivalents, including restricted amounts 2,223 5,424 Cash and equivalents, including restricted amounts, at beginning of period 15,017 14,755 Cash and equivalents at end of period: Cash and equivalents 16,193 19,457 Restricted cash and equivalents included in other assets 1,047 722 Total cash and equivalents, including restricted amounts, at end of period $ 17,240 $ 20,179 See accompanying notes to condensed consolidated financial statements. 38 Table of Contents Synchrony Financial and subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) ____________________________________________________________________________________________ NOTE 1. 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. Through Synchrony Bank (the “Bank”), we primarily offer private label credit cards, co-branded credit cards, comprising our Dual Card offering and general purpose co-branded credit cards, and a Synchrony-branded general purpose credit card, as well as short- and long-term installment loans, and savings products insured by the Federal Deposit Insurance Corporation (“FDIC”). We conduct our operations through a single business segment. See Note 14. Segment Reporting for additional information. References to the “Company”, “we”, “us” and “our” are to Synchrony Financial and its consolidated subsidiaries unless the context otherwise requires. NOTE 2. 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, 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 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, as well as certain variable interest entities ("VIE's"). 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 2025 annual consolidated financial statements and the related notes in our Annual Report on Form 10-K for the year ended December 31, 2025 (our "2025 Form 10-K"). 39 Table of Contents Change in Presentation At June 30, 2026, we changed the presentation of costs incurred to develop or acquire internal-use capitalized software, previously included in Intangible assets, to now be presented as a component of Premises and equipment, included within Other assets on our Condensed Consolidated Statement of Financial Position to better align presentation of these costs with assets that have similar characteristics. Prior period amounts of $1.2 billion, net of accumulated amortization, have been reclassified to conform with the current period presentation. See Note 6. Other Assets for additional information. Goodwill and Intangible Assets We do not amortize goodwill but test it at least annually for impairment at the reporting unit level pursuant to FASB Account Standards Codification ("ASC 350"), Intangibles—Goodwill and Other. A reporting unit is defined under GAAP as the operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Our single operating segment comprises a single reporting unit, based on the level at which segment management regularly reviews and measures the business operating results. When a portion of a reporting unit constitutes a business that is being disposed of, the amount of goodwill to be included in the carrying amount of the business classified as held for sale is based upon the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Goodwill impairment risk is first assessed by performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If potential goodwill impairment risk exists that indicates that it is more likely than not that the carrying value of our reporting unit exceeds its fair value, a quantitative test is performed. The quantitative test compares the reporting unit’s estimated fair value with its carrying value, including goodwill. If the carrying value of our reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to the reporting unit. The qualitative assessment for each period presented in the condensed consolidated financial statements was performed without hindsight, assuming only factors and market conditions existing as of those dates, and resulted in no potential goodwill impairment risk for our reporting unit. Consequently, goodwill was not deemed to be impaired for any of the periods presented. Definite-lived intangible assets primarily consist of customer-related assets, including purchased credit card relationships, which are amortized over their estimated useful lives. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The evaluation compares the cash inflows expected to be generated from each intangible asset to its carrying value. If cash flows attributable to the intangible asset are less than the carrying value, the asset is considered impaired and written down to its estimated fair value. Other Assets Other assets primarily consist of deferred income taxes, premises and equipment, which includes internal-use capitalized software, investments in affordable housing properties, equity method investments, and contract costs related to our retail partner agreements. Certain costs incurred to develop or acquire internal-use software are capitalized and amortized on a straight-line basis over their respective estimated useful life, generally five years, and the amortization is included as a component of Information processing costs in our Condensed Consolidated Statements of Earnings. We review these assets for impairment using the same impairment methodology used for definite-lived intangible assets. Retail partner contract costs are recognized over the life of the contract with the retail partner and are included as a component of Marketing and business development expense in our Condensed Consolidated Statements of Earnings. 40 Table of Contents New Accounting Standards Recently Issued But Not Yet Adopted Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires disaggregated information about certain income statement line items in a tabular format in the notes to the financial statements. The Company will adopt this guidance on its effective date, which for us is beginning within our December 31, 2027 Form 10-K, and is currently determining the method of adoption, however, it is not expected to have a material impact on our Consolidated Financial Statements. In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This ASU amends certain aspects of the accounting for and disclosure of software costs. This ASU requires an entity to start capitalizing software costs when both management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in this update are effective for the Company beginning in January 2028, through either a prospective, modified, or retrospective transition approach, with early adoption permitted. The Company is currently evaluating the updated guidance to assess the impact and the method of adoption. In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326) – Purchased Loans. This ASU expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result of this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the ASU will follow the gross-up approach at acquisition and the initial allowance for credit losses at acquisition is added to the amortized cost basis of the loans. The Company is currently evaluating the updated guidance, which is effective prospectively beginning January 2027, with early adoption permitted. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), which improves the navigability of the required interim disclosures, provides clarity as to when it is applicable, and provides additional guidance on what disclosures are required in interim reporting periods by establishing a disclosure principle. The guidance is effective for interim reporting periods beginning in 2028 and can be applied either prospectively or retrospectively. The Company is currently evaluating the updated guidance to assess the impact and determining its method of adoption. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2025 annual consolidated financial statements in our 2025 Form 10-K, for additional information on our significant accounting policies. 41 Table of Contents NOTE 3. 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: June 30, 2026 December 31, 2025 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 $ 3,465 $ 2 $ (7) $ 3,460 $ 1,485 $ 7 $ — $ 1,492 State and municipal 34 — (1) 33 35 — — 35 Residential mortgage-backed(a) 334 — (23) 311 318 1 (22) 297 Asset-backed(b) 551 1 — 552 509 6 — 515 Other 8 1 — 9 8 1 — 9 Total(c) $ 4,392 $ 4 $ (31) $ 4,365 $ 2,355 $ 15 $ (22) $ 2,348 _______________________ (a) Our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages. (b) Our asset-backed securities are collateralized by credit card and auto loans. (c) At June 30, 2026 and December 31, 2025, the estimated fair value of debt securities pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances was $288 million and $470 million, respectively. The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities: In loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized ($ in millions) fair value losses fair value losses At June 30, 2026 U.S. government and federal agency $ 2,178 $ (7) $ — $ — State and municipal 25 (1) 5 — Residential mortgage-backed 86 (1) 200 (22) Asset-backed 199 — — — Other — — — — Total(a) $ 2,488 $ (9) $ 205 $ (22) At December 31, 2025 U.S. government and federal agency $ — $ — $ — $ — State and municipal 17 — 5 — Residential mortgage-backed — — 229 (22) Asset-backed — — — — Other — — — — Total(a) $ 17 $ — $ 234 $ (22) ______________________ (a)Consists of 253 and 211 securities in gross unrealized loss positions at June 30, 2026 and December 31, 2025, respectively. 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 from credit losses were recognized during the period. 42 Table of Contents 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 At June 30, 2026 ($ in millions) Due within 1 year Due after 1 year through 5 years Due after 5 years through 10 years Due after 10 years Total U.S. government and federal agency $ 2,228 $ 1,232 $ — $ — $ 3,460 State and municipal — 6 — 27 33 Residential mortgage-backed — 40 91 180 311 Asset-backed 178 374 — — 552 Other — 9 — — 9 Total estimated fair value $ 2,406 $ 1,661 $ 91 $ 207 $ 4,365 Amortized cost $ 2,406 $ 1,666 $ 100 $ 220 $ 4,392 Weighted average yield(a) 4.0 % 4.0 % 1.4 % 4.2 % 3.9 % ______________________ (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. All securities are presented above based upon contractual maturity date, except our asset-backed securities which are allocated based upon expected final payment date. 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 six months ended June 30, 2026 and 2025. Although we generally do not have the intent to sell any specific securities held at June 30, 2026, in the ordinary course of managing our debt securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield, liquidity requirements and funding obligations. NOTE 4. LOAN RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES ($ in millions) June 30, 2026 December 31, 2025 Credit cards $ 94,233 $ 96,346 Consumer installment loans 5,233 5,548 Commercial credit products 2,681 1,833 Other 61 81 Total loan receivables, before allowance for credit losses(a)(b)(c) $ 102,208 $ 103,808 _______________________ (a)Total loan receivables include $21.8 billion and $22.4 billion of restricted loans of consolidated securitization entities at June 30, 2026 and December 31, 2025, respectively. See Note 5. Variable Interest Entities for further information. (b)At June 30, 2026 and December 31, 2025, loan receivables included deferred costs, net of purchase discounts and deferred income, of $(4) million and $(53) million, respectively. (c)At June 30, 2026 and December 31, 2025, $19.5 billion and $18.3 billion, respectively, of loan receivables were pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances. 43 Table of Contents Loan Receivables Acquired In April 2026, we completed our acquisition of the Lowe's commercial co-branded credit card portfolio, comprising $0.7 billion of outstanding loan receivables. This transaction was accounted for as an asset purchase. Allowance for Credit Losses ($ in millions) Balance at April 1, 2026 Provision charged to operations Gross charge-offs Recoveries Other(b) Balance at June 30, 2026 Credit cards $ 9,704 $ 1,142 $ (1,653) $ 417 $ — $ 9,610 Consumer installment loans 614 (27) (110) 14 — 491 Commercial credit products 109 86 (35) 3 47 210 Other 1 — — — — 1 Total $ 10,428 $ 1,201 $ (1,798) $ 434 $ 47 $ 10,312 ($ in millions) Balance at April 1, 2025 Provision charged to operations(a) Gross charge-offs Recoveries Other Balance at June 30, 2025 Credit cards $ 10,133 $ 1,077 $ (1,674) $ 370 $ — $ 9,906 Consumer installment loans 584 38 (92) 15 — 545 Commercial credit products 110 32 (33) 3 — 112 Other 1 — — — — 1 Total $ 10,828 $ 1,147 $ (1,799) $ 388 $ — $ 10,564 ($ in millions) Balance at January 1, 2026 Provision charged to operations(a) Gross charge-offs Recoveries Other(b) Balance at June 30, 2026 Credit cards $ 9,789 $ 2,290 $ (3,295) $ 826 $ — $ 9,610 Consumer installment loans 543 127 (211) 32 — 491 Commercial credit products 109 116 (68) 6 47 210 Other 1 — — — — 1 Total $ 10,442 $ 2,533 $ (3,574) $ 864 $ 47 $ 10,312 ($ in millions) Balance at January 1, 2025 Provision charged to operations(a) Gross charge-offs Recoveries Other Balance at June 30, 2025 Credit cards $ 10,259 $ 2,413 $ (3,496) $ 730 $ — $ 9,906 Consumer installment loans 542 173 (202) 32 — 545 Commercial credit products 127 48 (68) 5 — 112 Other 1 — — — — 1 Total $ 10,929 $ 2,634 $ (3,766) $ 767 $ — $ 10,564 _______________________ (a)Provision for credit losses in our Condensed Consolidated Statements of Earnings also includes amounts associated with off-balance sheet credit exposures recorded in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position. (b)Primarily represents allowance for credit losses associated with a loan portfolio purchase completed in the period, previously recorded in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position. The reasonable and supportable forecast period used in our estimate of credit losses at June 30, 2026 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 on a straight-line basis, and utilize historical loss information thereafter for the remaining life of the portfolio. 44 Table of Contents Losses on loan receivables, including those which are modified for borrowers experiencing financial difficulty, are estimated and recognized upon origination of the loan, and updated based on expected credit losses for the life of the loan balance at the period end date. Expected credit loss estimates are developed using both quantitative models and qualitative adjustments, and incorporates a macroeconomic forecast. The current and forecasted economic conditions at the balance sheet date are reflected in our current estimate of expected credit losses, as well as expectations of the macroeconomic environment. Our allowance for credit losses decreased to $10.3 billion at June 30, 2026, as compared to $10.4 billion at December 31, 2025, reflecting continued asset quality trends during the six months ended June 30, 2026. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2025 annual consolidated financial statements within our 2025 Form 10-K, for additional information on our significant accounting policies related to our allowance for credit losses. Delinquent and Non-accrual Loans The following tables provide information on our delinquent and non-accrual loan receivables: At June 30, 2026 ($ 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 $ 1,983 $ 1,976 $ 3,959 $ 1,976 $ — Consumer installment loans 120 29 149 — 29 Commercial credit products 96 45 141 45 — Total delinquent loans $ 2,199 $ 2,050 $ 4,249 $ 2,021 $ 29 Percentage of total loan receivables 2.2 % 2.0 % 4.2 % 2.0 % — % At December 31, 2025 ($ 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 $ 2,223 $ 2,181 $ 4,404 $ 2,181 $ — Consumer installment loans 144 31 175 — 31 Commercial credit products 45 36 81 36 — Total delinquent loans $ 2,412 $ 2,248 $ 4,660 $ 2,217 $ 31 Percentage of total loan receivables 2.3 % 2.2 % 4.5 % 2.1 % — % 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-end 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 data and scores to assist in our assessment of consumer credit quality. VantageScore credit data and 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, including for our commercial credit products, for which a VantageScore credit score may not be available where we use alternative sources to assess their credit quality and predict behavior. The following table provides the most recent VantageScore credit scores, or equivalent, available for our revolving credit card and commercial credit product customers at June 30, 2026, December 31, 2025 and June 30, 2025, respectively, as a percentage of each class of loan receivables. 45 Table of Contents The table below excludes 0.4%, 0.4% and 0.3% of our total loan receivables balance for our credit cards and commercial credit products at June 30, 2026, December 31, 2025 and June 30, 2025, respectively, which represents those customer accounts for which a VantageScore credit score, or equivalent, is not available. June 30, 2026 December 31, 2025 June 30, 2025 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 74 % 18 % 8 % 74 % 18 % 8 % 74 % 18 % 8 % Commercial credit products 83 % 9 % 8 % 83 % 11 % 6 % 83 % 11 % 6 % Consumer Installment Loans 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. The tables below include information on our consumer installment loans by origination year. Consumer Installment Loans by Origination Year By origination year At June 30, 2026 ($ in millions) 2026 2025 2024 2023 2022 Prior Total Amortized cost basis $ 990 $ 1,503 $ 1,178 $ 836 $ 510 $ 216 $ 5,233 30-89 days delinquent $ 13 $ 30 $ 29 $ 24 $ 16 $ 8 $ 120 90 or more days delinquent $ 3 $ 8 $ 7 $ 5 $ 4 $ 2 $ 29 By origination year At December 31, 2025 ($ in millions) 2025 2024 2023 2022 2021 Prior Total Amortized cost basis $ 1,959 $ 1,524 $ 1,091 $ 655 $ 241 $ 78 $ 5,548 30-89 days delinquent $ 37 $ 37 $ 35 $ 23 $ 9 $ 3 $ 144 90 or more days delinquent $ 9 $ 9 $ 7 $ 4 $ 1 $ 1 $ 31 Gross Charge-offs for Consumer Installment Loans by Origination Year By origination year For the six months ended ($ in millions) 2026 2025 2024 2023 2022 Prior Total June 30, 2026 $ 12 $ 69 $ 47 $ 42 $ 29 $ 12 $ 211 June 30, 2025 $ — $ 1 $ 71 $ 66 $ 44 $ 20 $ 202 46 Table of Contents Loan Modifications to Borrowers Experiencing Financial Difficulty The following tables provide information on our loan modifications made to borrowers experiencing financial difficulty during the periods presented, which do not include loans that are classified as loan receivables held for sale: Three months ended June 30 2026 2025 ($ in millions) Amount(a) % of Total Class of Loan Receivables Amount % of Total Class of Loan Receivables Long-term modifications Credit cards $ 341 0.4 % $ 383 0.4 % Consumer installment loans — — % — — % Commercial credit products 4 0.1 % 2 0.1 % Short-term modifications Credit cards 196 0.2 % 206 0.2 % Consumer installment loans — — % — — % Commercial credit products — — % — — % Total $ 541 0.5 % $ 591 0.6 % Six months ended June 30 2026 2025 ($ in millions) Amount(a) % of Total Class of Loan Receivables Amount % of Total Class of Loan Receivables Long-term modifications Credit cards $ 739 0.8 % $ 822 0.9 % Consumer installment loans — — % — — % Commercial credit products 6 0.2 % 5 0.3 % Short-term modifications Credit cards 414 0.4 % 461 0.5 % Consumer installment loans — — % — — % Commercial credit products 1 — % 1 — % Total $ 1,160 1.1 % $ 1,289 1.3 % _______________________ (a)Represents balance at enrollment date. Long-term and short-term loan modifications made to borrowers for the six months ended June 30, 2026 had amortized cost balances at June 30, 2026 of $661 million and $117 million, respectively. Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty As part of our loan modifications to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. For long-term modifications made in the three and six months ended June 30, 2026 and 2025, the financial effect of these modifications reduced the weighted-average interest rates by 97% for all periods presented. For short-term modifications made in the three months ended June 30, 2026 and 2025, unpaid balances of $11 million and $13 million, respectively, were forgiven related to borrowers who successfully exited the program. For short-term modifications made in the six months ended June 30, 2026 and 2025, unpaid balances of $105 million and $118 million, respectively, were forgiven related to borrowers who successfully exited the program. 47 Table of Contents Performance of Loans Modified to Borrowers Experiencing Financial Difficulty The following tables provide information on the performance of loans modified to borrowers experiencing financial difficulty which have been modified within the previous 12 months from the applicable balance sheet date and remained in a modification program at June 30, 2026 and 2025, respectively: Amortized cost basis At June 30, 2026 ($ in millions) Current 30-89 days delinquent 90 or more days delinquent Total past due(a) Long-term modifications Credit cards $ 915 $ 127 $ 100 $ 227 Consumer installment loans — — — — Commercial credit products 6 1 1 2 Short-term modifications Credit cards 56 29 32 61 Consumer installment loans — — — — Commercial credit products — — — — Total loans modified $ 977 $ 157 $ 133 $ 290 Percentage of total loan receivables 1.0 % 0.2 % 0.1 % 0.3 % Amortized cost basis At June 30, 2025 ($ in millions) Current 30-89 days delinquent 90 or more days delinquent Total past due(a) Long-term modifications Credit cards $ 997 $ 148 $ 117 $ 265 Consumer installment loans — — — — Commercial credit products 4 1 1 2 Short-term modifications Credit cards 56 30 38 68 Consumer installment loans — — — — Commercial credit products — — — — Total loans modified $ 1,057 $ 179 $ 156 $ 335 Percentage of total loan receivables 1.1 % 0.2 % 0.2 % 0.3 % ___________________ (a) Once a loan has been modified, it only returns to current status if the borrower pays the total minimum payment due or if the loan is re-aged after three consecutive monthly program payments are received post the modification date. Payment Defaults The following table presents loans to borrowers experiencing financial difficulty that enrolled in a long-term modification program within the previous 12 months from the applicable balance sheet date, and experienced a payment default and charged-off during the period presented: Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Credit cards $ 88 $ 103 $ 166 $ 190 Consumer installment loans — — — — Commercial credit products 1 1 1 1 Total $ 89 $ 104 $ 167 $ 191 Of the loans modified to borrowers experiencing financial difficulty that enrolled in a short-term modification program within the previous 12 months from the applicable balance sheet date, 62% and 63% had fully completed all required payments and successfully exited the program during the six months ended June 30, 2026 and 2025, respectively. 48 Table of Contents 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 a consistent underwriting approach for all of our credit products. Unused credit card lines available to our customers totaled approximately $453 billion and $440 billion at June 30, 2026 and December 31, 2025, respectively. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Interest Income by Product The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale: Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Credit cards(a) $ 5,092 $ 5,076 $ 10,244 $ 10,131 Consumer installment loans 187 207 375 418 Commercial credit products 100 43 172 88 Other 1 2 2 3 Total(b) $ 5,380 $ 5,328 $ 10,793 $ 10,640 _______________________ (a)Interest income on credit cards that was reversed related to accrued interest receivables written off was $609 million and $578 million for the three months ended June 30, 2026 and 2025, respectively, and $1.2 billion for both the six months ended June 30, 2026 and 2025. (b)Deferred merchant discounts to be recognized in interest income at June 30, 2026 and December 31, 2025, were $1.7 billion and $1.8 billion, respectively, which are included in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position. NOTE 5. VARIABLE INTEREST ENTITIES We use VIEs to securitize loan receivables and arrange public and private asset-backed financing in the ordinary course of business through Synchrony Card Issuance Trust, as well as private asset-backed financing through Synchrony Credit Card Master Note Trust and Synchrony Sales Finance Master Trust. 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 six months ended June 30, 2026 and 2025. 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. The loan receivables in these entities have risks and characteristics similar to our other loan 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 loan 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. 49 Table of Contents The table below summarizes the assets and liabilities of our consolidated securitization VIEs described above: ($ in millions) June 30, 2026 December 31, 2025 Assets Loan receivables, net(a) $ 19,884 $ 20,457 Other assets(b) 1,050 46 Total $ 20,934 $ 20,503 Liabilities Borrowings $ 8,916 $ 8,415 Other liabilities 27 28 Total $ 8,943 $ 8,443 _______________________ (a) Includes $2.0 billion and $1.9 billion of related allowance for credit losses resulting in gross restricted loan receivables of $21.8 billion and $22.4 billion at June 30, 2026 and December 31, 2025, respectively. (b) Includes $1.0 billion and $42 million of segregated funds held by the VIEs at June 30, 2026 and December 31, 2025, respectively, which are classified as restricted cash and equivalents and included as a component of Other assets in our Condensed Consolidated Statements of Financial Position. The balances presented above are net of intercompany balances and transactions that are eliminated in our condensed consolidated financial statements, including amounts related to servicing of the loan receivables held by our VIEs. We provide servicing for all of our consolidated VIEs. Collections are required to be placed into segregated accounts owned by each VIE in amounts that meet contractually specified minimum levels. These segregated funds are invested in cash and cash equivalents and are restricted as to their use, principally to pay maturing principal and interest on debt and the related servicing fees. Collections above these minimum levels are remitted to us on a daily basis. The table below summarizes selected financial metrics of our consolidated securitization VIEs described above: Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Interest and fees on loans $ 1,144 $ 1,067 2,269 $ 2,117 Provision for credit losses $ 220 $ 260 $ 461 $ 462 Interest expense $ 111 $ 104 $ 217 $ 208 These amounts do not include intercompany transactions, which are eliminated in our condensed consolidated financial statements. Non-consolidated VIEs As part of our community reinvestment initiatives, we invest in funds that invest in affordable housing properties and receive affordable housing tax credits for these investments. We account for these investments using the proportional amortization method, where the costs of the investment are amortized in proportion to the income tax credits and other income tax benefits received. These investments are included in Other assets within our Condensed Consolidated Statements of Financial Position and totaled $904 million and $943 million at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026, we are committed to provide funding related to these investments of $456 million, which is expected to be paid between 2026 and 2042, and is reported within Accrued expenses and other liabilities within our Condensed Consolidated Statements of Financial Position. 50 Table of Contents The table below summarizes amortization expense and tax credits and other tax benefits associated with investments in affordable housing properties included in Provision for income taxes in our Condensed Consolidated Statements of Earnings: Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Amortization expense $ 39 $ 46 $ 79 $ 73 Tax credits and other benefits $ (48) $ (55) $ (97) $ (88) Our other investments in non-consolidated VIEs totaled $312 million and $301 million at June 30, 2026 and December 31, 2025, respectively, and are included in Other assets within our Condensed Consolidated Statements of Financial Position. At June 30, 2026, the Company also had investment commitments of $196 million related to these investments. We may be required to fund these commitments between 2026 and 2046. NOTE 6. OTHER ASSETS June 30, 2026 December 31, 2025 Deferred income tax assets, net $ 2,051 $ 2,078 Premises and equipment, net 1,217 1,248 Restricted cash 1,047 44 Investments in affordable housing properties 904 943 Equity method investments 841 834 Other 1,901 1,794 Total other assets $ 7,961 $ 6,941 At June 30, 2026, we changed the presentation of costs incurred to develop or acquire internal-use capitalized software, previously included in Intangible assets, to now be presented as a component of Premises and equipment, net in the table above. Amounts at December 31, 2025 have been recast to include $1.2 billion of internal-use capitalized software, net of accumulated amortization, within Premises and equipment, net to conform with the current period presentation. The gross carrying amount for internal-use capitalized software, included in Premises and equipment, was $3.2 billion and $3.1 billion at June 30, 2026 and December 31, 2025, respectively, with accumulated amortization of $2.1 billion and $1.9 billion, respectively. During the six months ended June 30, 2026, we recorded additions to internal-use capitalized software subject to amortization of $178 million. Amortization expense related to internal-use capitalized software was $101 million and $84 million for the three months ended June 30, 2026 and 2025, respectively, and $203 million and $168 million for the six months ended June 30, 2026 and 2025, respectively, and is included as a component of Information processing in our Condensed Consolidated Statements of Earnings. 51 Table of Contents NOTE 7. DEPOSITS ($ in millions) June 30, 2026 December 31, 2025 Interest-bearing deposits: Money market and other demand deposits $ 3,010 $ 2,837 Savings 29,905 29,777 Certificates of deposit: Direct 43,321 42,229 Brokered 3,466 3,316 Brokered sweep accounts 2,674 2,589 Total interest-bearing deposits 82,376 80,748 Total non-interest-bearing deposits 430 396 Total deposits $ 82,806 $ 81,144 Certificates of Deposit At June 30, 2026, our certificates of deposit maturing for the remainder of 2026 and over the next four years and thereafter were as follows: ($ in millions) 2026 2027 2028 2029 2030 Thereafter Certificates of deposit $ 18,919 $ 21,517 $ 2,498 $ 1,356 $ 2,096 $ 401 At June 30, 2026 and December 31, 2025, direct certificates of deposit of $12.8 billion and $12.3 billion, respectively, were of denominations at or exceeding applicable FDIC insurance limits, which are generally $250,000 per depositor for each account ownership category. These amounts include partially insured certificates of deposit. At June 30, 2026 and December 31, 2025, the portion of these direct certificates of deposit estimated to be uninsured was $4.4 billion and $4.2 billion, respectively. Brokered certificates of deposit are assumed to be individual deposit balances within applicable FDIC insurance limits. Brokered Sweep Deposits Our brokered sweep deposits are sourced through a third-party program arranger that channels deposit accounts to us. Unless extended, the related agreements are scheduled to terminate between 2026 and 2030. 52 Table of Contents NOTE 8. BORROWINGS June 30, 2026 December 31, 2025 ($ in millions) Maturity date Interest Rate Weighted average interest rate Outstanding Amount(a)(b) Outstanding Amount(a)(b) Borrowings of consolidated securitization entities: Fixed securitized borrowings(c) 2026 - 2029 4.06% - 5.74% 4.90 % $ 5,991 $ 5,490 Floating securitized borrowings 2027 - 2028 4.32% - 4.75% 4.48 % 2,925 2,925 Total borrowings of consolidated securitization entities 4.76 % 8,916 8,415 Senior unsecured notes: Synchrony Financial senior unsecured notes: Fixed senior unsecured notes 2026 - 2031 2.88% - 5.15% 3.90 % 2,893 2,892 Fixed-to-floating senior unsecured notes(d) 2029 - 2036 4.95% - 6.00% 5.46 % 3,281 2,534 Synchrony Bank senior unsecured notes: Fixed senior unsecured notes 2027 5.63% 5.63 % 599 599 Total senior unsecured notes 4.81 % 6,773 6,025 Subordinated unsecured notes: Synchrony Financial subordinated unsecured notes: Fixed subordinated unsecured notes 2033 7.25% 7.25 % 743 742 Total senior and subordinated unsecured notes 5.05 % 7,516 6,767 Total borrowings $ 16,432 $ 15,182 ___________________ (a)Includes unamortized debt premiums, discounts and issuance costs. (b)The Company may redeem certain borrowings prior to their original contractual maturity dates in accordance with the optional redemption provision specified in the respective instruments. (c)Includes $1.0 billion of fixed securitized borrowings which matured and were repaid in July 2026. (d)Includes $750 million principal amount issued in February 2026, interest rate fixed at 4.947% through February 24, 2031; resets February 25, 2031 to floating rate based on compounded Secured Overnight Financing Rate ("SOFR") plus 153 basis points through maturity in February 2032. Additional Sources of Liquidity We have undrawn committed and uncommitted capacity under our credit facilities from private lenders under our securitization programs, subject to customary borrowing conditions, and also have access to the Federal Reserve discount window. At both June 30, 2026 and December 31, 2025, we had: •an aggregate of $2.6 billion of undrawn capacity under our securitization financings, of which $2.1 billion was committed and $450 million was uncommitted, and •available borrowing capacity through the Federal Reserve discount window of $13.1 billion at June 30, 2026 and $10.0 billion at December 31, 2025, based on the amount and type of assets pledged. 53 Table of Contents NOTE 9. FAIR VALUE MEASUREMENTS For a description of how we estimate fair value, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies in our 2025 annual consolidated financial statements within our 2025 Form 10-K. The following tables present our assets measured at fair value on a recurring basis. Liabilities measured at fair value on a recurring basis were not material for the periods presented. Recurring Fair Value Measurements At June 30, 2026 ($ in millions) Level 1 Level 2 Level 3 Total(a) Assets Debt securities U.S. government and federal agency $ — $ 3,460 $ — $ 3,460 State and municipal — — 33 33 Residential mortgage-backed — 311 — 311 Asset-backed — 552 — 552 Other — — 9 9 Other(b) 35 — 5 40 Total $ 35 $ 4,323 $ 47 $ 4,405 At December 31, 2025 ($ in millions) Level 1 Level 2 Level 3 Total(a) Assets Debt securities U.S. government and federal agency $ — $ 1,492 $ — $ 1,492 State and municipal — — 35 35 Residential mortgage-backed — 297 — 297 Asset-backed — 515 — 515 Other — — 9 9 Other(b) 15 — 7 22 Total $ 15 $ 2,304 $ 51 $ 2,370 _______________________ (a) For the six months ended June 30 2026 and 2025, there were no fair value measurements transferred between levels and changes in our Level 3 assets were not material. (b) Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Condensed Consolidated Statements 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. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies in our 2025 annual consolidated financial statements within our 2025 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 in our Condensed Consolidated Statements of Financial Position. 54 Table of Contents Financial Assets and Financial Liabilities Carried at Other Than Fair Value Carrying Corresponding fair value amount At June 30, 2026 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value(a): Cash and equivalents $ 16,193 $ 16,193 $ 16,193 $ — $ — Accrued interest receivable $ 38 $ 38 $ 38 $ — $ — Other assets(b) $ 1,047 $ 1,047 $ 1,047 $ — $ — Financial assets carried at other than fair value: Loan receivables, net(c) $ 91,894 $ 105,027 $ — $ — $ 105,027 Financial Liabilities Financial liabilities for which carrying values equal or approximate fair value(a): Accrued interest payable $ 286 $ 286 $ 286 $ — $ — Financial liabilities carried at other than fair value: Deposits(d) $ 82,806 $ 83,009 $ — $ 83,009 $ — Borrowings of consolidated securitization entities $ 8,916 $ 8,913 $ — $ 5,993 $ 2,920 Senior and subordinated unsecured notes $ 7,516 $ 7,488 $ — $ 7,488 $ — Carrying Corresponding fair value amount At December 31, 2025 ($ in millions) value Total Level 1 Level 2 Level 3 Financial Assets Financial assets for which carrying values equal or approximate fair value(a): Cash and equivalents $ 14,973 $ 14,973 $ 14,973 $ — $ — Accrued interest receivable $ 27 $ 27 $ 27 $ — $ — Other assets(b) $ 44 $ 44 $ 44 $ — $ — Financial assets carried at other than fair value: Loan receivables, net(c) $ 93,364 $ 106,591 $ — $ — $ 106,591 Financial Liabilities Financial liabilities for which carrying values equal or approximate fair value(a): Accrued interest payable $ 287 $ 287 $ 287 $ — $ — Financial liabilities carried at other than fair value: Deposits(d) $ 81,144 $ 81,374 $ — $ 81,374 $ — Borrowings of consolidated securitization entities $ 8,415 $ 8,477 $ — $ 5,559 $ 2,918 Senior and subordinated unsecured notes $ 6,767 $ 6,870 $ — $ 6,870 $ — _______________________ (a) Carrying value approximates fair value as the financial assets and liabilities are liquid in nature or have a short-term maturity. (b) This balance relates to restricted cash and equivalents, which is included in Other assets in our Condensed Consolidated Statements of Financial Position. 55 Table of Contents (c) 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. (d)Includes demand deposits with no defined maturity. Equity Securities Without Readily Determinable Fair Values Three months ended Six months ended At or for the periods ended June 30 ($ in millions) 2026 2025 2026 2025 Carrying value(a) $ 266 $ 275 $ 266 $ 275 Upward adjustments(b) $ — $ — $ — $ — Downward adjustments(b) $ (2) $ — $ (2) $ — _______________________ (a) Carrying value reflects cumulative purchases and sales in addition to upward and downward carrying value changes, and at December 31, 2025 was $269 million. (b) Between January 1, 2018 and June 30, 2026, cumulative upward and downward carrying value adjustments for equity securities held at June 30, 2026 were $201 million and $(12) million, respectively. NOTE 10. REGULATORY AND CAPITAL ADEQUACY At June 30, 2026 and December 31, 2025, Synchrony Financial met all minimum capital requirements and the applicable requirements to be deemed well-capitalized pursuant to Federal Reserve Board regulations. At June 30, 2026 and December 31, 2025, the Bank also met all applicable requirements to be deemed well-capitalized pursuant to OCC regulations and for purposes of the Federal Deposit Insurance Act. There are no conditions or events subsequent to June 30, 2026 that management believes have changed the Company's or the Bank’s capital category. The actual capital amounts, ratios and the applicable required minimums of the Company and the Bank are as follows: Synchrony Financial At June 30, 2026 ($ in millions) Actual Minimum for capital adequacy purposes Amount Ratio(a) Ratio(b) Total risk-based capital $ 17,782 16.9 % 8.0 % Tier 1 risk-based capital $ 15,616 14.9 % 6.0 % Tier 1 leverage $ 15,616 13.0 % 4.0 % Common equity Tier 1 Capital $ 13,900 13.2 % 4.5 % At December 31, 2025 ($ in millions) Actual(c) Minimum for capital adequacy purposes Amount Ratio(a) Ratio(b) Total risk-based capital $ 17,691 16.7 % 8.0 % Tier 1 risk-based capital $ 15,512 14.6 % 6.0 % Tier 1 leverage $ 15,512 13.3 % 4.0 % Common equity Tier 1 Capital $ 14,290 13.5 % 4.5 % 56 Table of Contents Synchrony Bank At June 30, 2026 ($ in millions) Actual Minimum for capital adequacy purposes Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio(a) Ratio(b) Ratio Total risk-based capital $ 16,427 16.5 % 8.0 % 10.0 % Tier 1 risk-based capital $ 14,321 14.4 % 6.0 % 8.0 % Tier 1 leverage $ 14,321 12.6 % 4.0 % 5.0 % Common equity Tier 1 capital $ 14,321 14.4 % 4.5 % 6.5 % At December 31, 2025 ($ in millions) Actual(c) Minimum for capital adequacy purposes Minimum to be well-capitalized under prompt corrective action provisions Amount Ratio(a) Ratio(b) Ratio Total risk-based capital $ 16,162 16.1 % 8.0 % 10.0 % Tier 1 risk-based capital $ 14,045 14.0 % 6.0 % 8.0 % Tier 1 leverage $ 14,045 12.7 % 4.0 % 5.0 % Common equity Tier 1 capital $ 14,045 14.0 % 4.5 % 6.5 % _______________________ (a)Capital ratios are calculated based on the Basel III Standardized Approach rules. (b)At June 30, 2026 and December 31, 2025, Synchrony Financial and the Bank also must maintain a stress capital buffer or capital conservation buffer, as applicable, in excess of minimum risk-based capital ratios, which exclude the Tier 1 leverage ratio, by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (c)Amounts and ratios at December 31, 2025 have been recast to reflect the change in presentation of internal-use capitalized software on our Condensed Consolidated Statements of Financial Position. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for additional information. The Bank may pay dividends on its stock, with consent or non-objection from the OCC and the Federal Reserve Board, among other things, if its regulatory capital would not thereby be reduced below the applicable regulatory capital requirements. For additional information on the minimum capital requirements for both Synchrony Financial and the Bank, see "Regulation—Regulation Relating to Our Business—Capital for both Savings and Loan Holding Company Regulation and Savings Association Regulation," as applicable, in addition to Note 11. Regulatory and Capital Adequacy, in our 2025 Form 10-K. 57 Table of Contents NOTE 11. 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, which are calculated using the treasury stock method. The following table presents the calculation of basic and diluted earnings per common share: Three months ended June 30, Six months ended June 30, ($ and shares in millions, except per share data) 2026 2025 2026 2025 Net earnings $ 885 $ 967 $ 1,690 $ 1,724 Preferred stock dividends (21) (21) (42) (42) Net earnings available to common stockholders $ 864 $ 946 $ 1,648 $ 1,682 Weighted average common shares outstanding, basic 331.3 376.2 336.8 380.7 Effect of dilutive securities 2.8 2.9 3.2 3.5 Weighted average common shares outstanding, dilutive 334.1 379.1 $ 340.0 384.2 Earnings per basic common share $ 2.61 $ 2.51 $ 4.89 $ 4.42 Earnings per diluted common share $ 2.59 $ 2.50 $ 4.85 $ 4.38 We have issued stock-based awards under the Synchrony Financial 2024 Long-Term Incentive Plan, along with prior incentive plans. Awards that were considered anti-dilutive and therefore were excluded from the computation of diluted earnings per common share were less than 1 million shares for each of the periods presented. NOTE 12. EQUITY AND OTHER STOCK RELATED INFORMATION Preferred Stock At June 30, 2026 and December 31, 2025, the Company had 1.26 million and 1.25 million shares, respectively, of preferred stock outstanding, which had previously been approved by our Board for issuance. In addition, subject to approval from the Board, we have the ability to issue additional series of preferred stock up to a maximum of 300 million shares at a par value of $0.001 per share authorized for issuance. The following table summarizes the Company's preferred stock issued and outstanding at June 30, 2026 and December 31, 2025. Series Issuance Date Redeemable by Issuer Beginning Per Annum Dividend Rate Liquidation Preference per Share Total Shares Outstanding June 30, 2026 December 31, 2025 ($ in millions, except per share data) Series A(a) November 14, 2019 November 15, 2024 5.625% $1,000 750,000 $ 734 $ 734 Series B(a) February 23, 2024 May 15, 2029 8.25%(b) $1,000 500,000 $ 488 $ 488 Series C(a) June 5, 2026 August 15, 2031 7.25%(c) $100,000 5,000 $ 494 $ — $ 1,716 $ 1,222 _______________________ (a)Issued as depositary shares, each representing a 1/40th interest in a share of Series A and B non-cumulative perpetual preferred stock, and representing a 1/100th interest in a share of Series C non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 of each calendar year at a fixed rate, in each case when, as and if declared by the Board of Directors. (b)Through May 14, 2029; resets May 15, 2029 and each date falling on the fifth anniversary at 5-Year Treasury Rate plus 4.044%. (c)Through August 14, 2031; resets August 15, 2031 and each date falling on the fifth anniversary at 5-Year Treasury Rate plus 3.078%. 58 Table of Contents NOTE 13. INCOME TAXES Unrecognized Tax Benefits ($ in millions) June 30, 2026 December 31, 2025 Unrecognized tax benefits, excluding related interest expense and penalties(a) $ 237 $ 218 Portion that, if recognized, would reduce tax expense and effective tax rate(b) $ 187 $ 172 ____________________ (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. 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 2026 tax year, and thus the tax year is under IRS review. The IRS is also examining our 2025 tax year, and we expect the review will be completed in the current year. Additionally, we are under examination in various states going back to 2019. 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. 59 Table of Contents NOTE 14. SEGMENT REPORTING We conduct our operations through a single business segment, which derives interest and fee income earned on our credit products we offer to our customers. There have not been any changes to the basis of segmentation or the measurement of performance as compared to our 2025 Form 10-K. The following table presents segment information for the periods presented herein: Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 2026 2025 Interest and fees on loans $ 5,380 $ 5,328 $ 10,793 $ 10,640 Interest on cash and debt securities 203 258 393 496 Total interest income 5,583 5,586 11,186 11,136 Total interest expense 975 1,065 1,943 2,151 Net interest income 4,608 4,521 9,243 8,985 Retailer share arrangements (1,027) (992) (2,097) (1,887) Reserve build (release) (163) (265) (174) (362) Net charge-offs 1,364 1,411 2,710 2,999 Provision for credit losses 1,201 1,146 2,536 2,637 Other income: Other income 137 118 270 267 Total other income 137 118 270 267 Other expense: Employee costs 516 509 1,031 1,015 Professional fees 220 236 429 453 Marketing and business development 137 127 251 243 Information processing 248 215 510 434 Fraud-related operational losses 78 34 166 75 Other segment items(a) 132 124 260 268 Total other expense 1,331 1,245 2,647 2,488 Provision for income taxes 301 289 543 516 Net earnings $ 885 $ 967 $ 1,690 $ 1,724 _____________ (a)Represents the total amount of other expenses included in Net earnings, including postage and various other corporate overhead items, such as facilities costs and telephone charges. Our segment assets represent our Total assets as presented on our Condensed Consolidated Statements of Financial Position. 60 Table of Contents NOTE 15. 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 potential 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. 61 Table of Contents