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Synchrony Bank woes

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Valued Contributor

Synchrony Bank woes

Getting taken to the wood shed today, down -16% currently under strong credit concerns.

 

Q1 reported a full $0.12 miss per share and an increase of $403M loan loss provisions to $1.3B.

 

Loans 30+ past due rose to 4.25% from 3.85% a year ago. 

 

Net charge-offs as a percent of total rose to 5.33% from 4.74%.  Allowance for loan losses as a percent of total rose to 6.37% from 5.5%.

 

NOT good news for this bank.  Not sure if this will result in any aggressive actions down the road or not but just an FYI to those holding cards or such from this bank or to future applicants..



12 REPLIES 12
Community Leader
Super Contributor

Re: Synchrony Bank woes

I smell AAcoming and no more big cli, hang tight gonna be a bumpy rideSmiley Happy
#ChaseCreditCardHobby Enthusiast
2022
!
Message 2 of 13
Senior Contributor

Re: Synchrony Bank woes

Wonderful just what I expected !!! Thanks for sharing Op

Message 3 of 13
Valued Contributor

Re: Synchrony Bank woes

Just looked up the ownership holders.

 

The California Public Employees Retirement System is the largest institutional holder which means in value today they lost roughly $264M.



Message 4 of 13
Valued Contributor

Re: Synchrony Bank woes


@AverageJoesCredit wrote:
I smell AAcoming and no more big cli, hang tight gonna be a bumpy rideSmiley Happy

Hmmmm. I wonder how long Synchrony knew this was coming. This might just be another reason I was turned down on that CLI attempt last month - I had been originally advised to ask for $10k, but got cold feet and trimmed it down to $6k and still got shot down. With this news, things become clearer. And more generally, as I've said ad nauseam, all this news explains why lenders are getting antsy and cracking down on users with too-big CL's, not enough use on their lines, or other question marks on their records.

Ch 7 BK discharged 11/28/14, credit rebuild well advanced. FICO:TU 680 FICO 8 (3/2/19) or 687 FICO 9/EX 694 FICO 8/EQ 685 FICO 8 or 674 FICO 9 (NFCU 3/3/19), VS 3.0 10/17/18: TU 702/EX 699/EQ 698. $92.9k revolving credit as of 1/31/19; $1K NFCU cashRewards Visa, $2K BJ's Perks MC, $5.1k Discover It #1, $6.5k Discover It #2 (new 3/12/18), $3.5k Petal Visa, $6k Paypal 2% CB MC, $6k Amazon Prime Store Card, $6k Walmart Store Card, $7k Apple FCU Platinum Visa, $7k Penfed Power Cash Rewards Visa, $11.8k Overstock Store Card, $15K Care Credit, $16K Cap One QS Rewards Visa Signature, $10k PenFed used car loan, $5k Navient student loan, $12.7k Lending Club loan. Gardening: 3 months, 19 days as of 1/31/19. 24 HP inqs total as of 10/12/18: 10 TU, 9 EQ, 5 EX (about half over 1 year old).
Message 5 of 13
Community Leader
Super Contributor

Re: Synchrony Bank woes

Well Joe, im not too sure, i actually did finally break the 6k mark for Amazon asked for 10k and actually got it, though the time i spent on the phone with cs was alot longer than normal before they came back with the approval . So for now as your credit improves and score goes up i still believe you can ask. Worse they say is now and ...well ok, i guess worse is the 4506 and account closure lol. Im mentally preparing for any cld's but if it happens so be it. Ive diversified enough that my modest spend should surviveSmiley Happy
#ChaseCreditCardHobby Enthusiast
2022
!
Message 6 of 13
Valued Contributor

Re: Synchrony Bank woes


@AverageJoesCredit wrote:
Well Joe, im not too sure, i actually did finally break the 6k mark for Amazon asked for 10k and actually got it, though the time i spent on the phone with cs was alot longer than normal before they came back with the approval . So for now as your credit improves and score goes up i still believe you can ask. Worse they say is now and ...well ok, i guess worse is the 4506 and account closure lol. Im mentally preparing for any cld's but if it happens so be it. Ive diversified enough that my modest spend should surviveSmiley Happy

I thought Amazon was a Chase card now.  Not the case?



Message 7 of 13
Established Contributor

Re: Synchrony Bank woes


@MissingCalifornia wrote:

@AverageJoesCredit wrote:
Well Joe, im not too sure, i actually did finally break the 6k mark for Amazon asked for 10k and actually got it, though the time i spent on the phone with cs was alot longer than normal before they came back with the approval . So for now as your credit improves and score goes up i still believe you can ask. Worse they say is now and ...well ok, i guess worse is the 4506 and account closure lol. Im mentally preparing for any cld's but if it happens so be it. Ive diversified enough that my modest spend should surviveSmiley Happy

I thought Amazon was a Chase card now.  Not the case?


The Amazon store card is Sync.  The chase amazon card is visa. Two different cards. 

Fell of the wagon -- Gardening starting again 2/25/18- ???
Message 8 of 13
Valued Contributor

Re: Synchrony Bank woes

This news, I don't know if it'll impact my plans to attempt CLI's on Cap One Platinum, Discover It and Amazon (Synchrony) over the next few months. I was thinking of trying a CLI on my unsecured Platinum in the second half of May (90+ days after the card was activated), another crack at a CLI on Amazon after the sixth statement cuts (also in May), and Discover in late June/early July. I was already considering keeping the amounts requested reasonably modest, now I'm not sure whether the overall climate will be settled enough to go ahead with those requests at all. ???

Ch 7 BK discharged 11/28/14, credit rebuild well advanced. FICO:TU 680 FICO 8 (3/2/19) or 687 FICO 9/EX 694 FICO 8/EQ 685 FICO 8 or 674 FICO 9 (NFCU 3/3/19), VS 3.0 10/17/18: TU 702/EX 699/EQ 698. $92.9k revolving credit as of 1/31/19; $1K NFCU cashRewards Visa, $2K BJ's Perks MC, $5.1k Discover It #1, $6.5k Discover It #2 (new 3/12/18), $3.5k Petal Visa, $6k Paypal 2% CB MC, $6k Amazon Prime Store Card, $6k Walmart Store Card, $7k Apple FCU Platinum Visa, $7k Penfed Power Cash Rewards Visa, $11.8k Overstock Store Card, $15K Care Credit, $16K Cap One QS Rewards Visa Signature, $10k PenFed used car loan, $5k Navient student loan, $12.7k Lending Club loan. Gardening: 3 months, 19 days as of 1/31/19. 24 HP inqs total as of 10/12/18: 10 TU, 9 EQ, 5 EX (about half over 1 year old).
Message 9 of 13
Senior Contributor

Re: Synchrony Bank woes

Still means that 94 %to 95% of their "loans" are current and paying high APR's (those carrying a balance). While this might result in some "adjusting" of accounts, I don't think its panic time. I suspect that the cost of borrowing money aka fed rate, has been increasing so we are seeing the tightening of "everyone gets approved easy credit". I'm sure not going to adjust my spending or paying habits - although I will say I have a very thick file which provides for some flexibility if I get balance chased or CLD'd (I'll close the card). 

Message 10 of 13
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