Q3 2021 Synchrony Financial Earnings Call

October 19, 2021

Welcome to the Synchrony financial third quarter 2021 earnings Conference call. My name is Vanessa and I will be your operator for today's call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session. Please note that this call.

France is being recorded.

I will now turn the call over to your host Katherine Miller Senior Vice President of Investor Relations you may begin.

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

Best Relations section of the website.

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

The company's performance you can find a reconciliation of these measures to GAAP financial measures in our materials for today's call.

Finally, synchrony financial is not responsible for and does not edit or guarantee the accuracy of our earnings teleconference transcripts provided by third parties.

The only authorized webcasts are located on our website.

On the call. This morning are Brian doubles, synchrony, as President and Chief Executive Officer, and Brian Wenzel Executive Vice President and Chief Financial Officer, I will now turn the call over to Brian doubles. Thanks.

Thanks, Catherine good morning, everyone.

The power of Synchrony as model continued to show through in our third quarter financial results.

We continued to reach and serve more partners and customers.

New accounts grew 17% to $6 2 million and average active accounts increased 5% to $67 2 million during the period.

This is in large part attributable to the powerful combination of our data driven insights are seamless customer experiences in our industry, leading product suite, which resonates deeply with customers.

Her name is omnichannel capabilities enable our partners and customers to connect wherever and whenever they want to be met and the variety of financing options and value propositions, we offer empowers them with choice.

Yeah.

As we continue to anticipate and deliver on the needs of our partners and customers, we drive more value and greater utilization.

This translated to an 11% increase in purchase volume per active account during the third quarter and 16% growth in total purchase volume compared to last year.

Of course this strength in purchase volume was largely offset by the persistently elevated payment rate trends, resulting from government stimulus and industry wide forbearance actions, leading to a 2% increase in loans, including loans held for sale.

Net interest margin of 15, 5% was 165 basis points higher than last year, primarily reflecting a reduction in excess liquidity.

Operating expenses were down 10% compared to last year and down 7% year to date as our cost efficiency initiatives continuous plan.

We remain on track to reduce about 210 million from our expense base by year end, even as we continue to invest in our business.

The efficiency ratio was 38, 7% for the quarter largely flat with last year.

Credit continued to perform very well net charge offs were 2.18% for the third quarter down 224 basis points from last year.

Net earnings were $1 1 billion or $2 per diluted share and included a 33% benefit from the reserve release related to the reclassification of the GAAP portfolio to held for sale.

Turning to our balance sheet deposits were down 3 billion or 5% versus last year, reflecting retail deposit rate actions, we took to manage our excess liquidity.

Deposits represented 82% of our funding mix at quarter end, a slight increase versus last year due to the retirement of debt.

During the quarter, we returned $1 4 billion in capital through share repurchases of $1 3 billion and $124 million in common stock dividends.

We also continued to reinvest in our business.

As we highlighted during our recent Investor day, our ability to remain nimble and adapt to the ever changing consumer finance landscape has been driven by our continued investment in our product suite and our innovative digital capabilities.

In fact, if you think about the last decade alone the introduction of digital wallets point of sale financing and a greater variety of installment offerings just to name a few.

Demonstrated the importance of diversity accessibility and utility in both products and experience.

And so synchrony has continuously evolved adding new financing options enhancing our technology platform and expanding our channels and distribution networks in order to reach and serve more partners and customers and sustainable ways to drive greater value for all.

In addition to launching new products and partner programs, we're remaining focused on innovative ways to get scaled distribution of our product suite.

Last week, we announced our expanded strategic partnership with fiserv through where small businesses will now be able to access synchrony products and services and accept private label credit card payments via the Clover point of sale and business management platform from Fiserv.

This will enable accelerated growth for small businesses empowering merchants to attract more customers and generate more revenue by offering our customers greater flexibility and choice in how they make purchases.

We will also explore additional opportunities to cross sell synchrony products its existing clover merchants.

Importantly, this strategic partnership also deepened synchroneyes ecosystem and reinforces our growth strategy to expand and accelerate innovative product offerings through additional distribution channels. It builds on our momentum to bring our products to merchants faster and Leverages Synchroneyes leadership in financing analytics and services were <unk>.

[noise] cited to utilize the point of sale innovations driven by Clover to continue to transform the way people purchase while helping merchants grow.

Furthermore, as we and our partners endeavor to provide more comprehensive customer access to financial products and resources. We are excited to expand our partnership with Paypal.

As announced in late September Synchrony, we'll be launching Paypal savings, a new Paypal branded savings account.

This unique opportunity will allow us to expand the distribution of our savings product to a unique set of customers with.

With features and functionality inside the Paypal App.

Delivering an enhanced customer experience, while also further diversifying our deposit base and an attractively low cost to acquire.

In addition to our ongoing efforts to expand both our product suite and distribution network. We also seek to enhance partner and customer engagement through customize value propositions and omnichannel capabilities.

We recently launched two industry first retail health and wellness credit cards, the my Walgreens Mastercard and my Walgreens private label credit card, which reward customers with savings on future health and wellness purchases.

My Walgreens credit cardholders can earn 10% Walgreens cash rewards on eligible Walgreens branded products and 5% Walgreens cash rewards on other eligible brands and pharmacy purchases.

My Walgreens Mastercard holders can also earn 3% Walgreens cash rewards on eligible grocery and health and wellness purchases everywhere else, including health care providers, and 1% Walgreens cash rewards on eligible purchases anywhere Mastercard credit cards are accepted.

In a world where consumers are increasingly responsible for a greater proportion of their health related costs. We believe these value propositions will drive considerable value, while also providing greater financing flexibility for health related needs and enhancing loyalty over time.

Furthermore, synchroneyes digital capabilities allow us to seamlessly engage with customers wherever they are.

We have deep digital integration across the Walgreens web mobile and native app channels with the ability for customers to apply and instantly buy through all of these channels.

We've launched frictionless customer experiences leveraging technology capabilities like QR codes quick screen, which is a real time pre screen of one <unk>.

Customer initiated Prequalification of director device in store application process card servicing integrated seamlessly into the Walgreens App and API integration with the my Walgreens loyalty program.

And while it's still early the initial data we're seeing indicates that both the value prop and dynamic customer experience. We have achieved with Walgreens are resonating very well with cardholders and driving spend both inside and outside of Walgreens in categories, such as grocery health and wellness.

By empowering our partners and customers with best in class wallet, Optionality and compelling outcomes synchrony is increasingly well positioned as the partner of choice.

With more than 65 million active accounts synchrony has market, leading reach and deep diverse lending insights that enable us to better anticipate the needs of customers, and therefore, which financing options will optimize utilization and drive lifetime value.

So whether it comes in the form of our dual co branded and private label credit cards.

Our various debt pay installment products or a synchrony Mastercard, we deeply understand when why and how customers seek financing solutions for their day to day purchases.

We're particularly excited about the opportunity we see for our synchrony Mastercard, which allows us to tap into the 500 billion general purpose credit card market.

We are taking a measured approach to growth however, by leveraging our scale and underwriting expertise, we've been able to identify better performing customer segments.

More customers at lower Cpas, and fine tune our channel strategy over the last two years.

Today's synchrony Mastercard offers a variety of value propositions, which we use in combination with our pricing strategy to expand our customer reach and optimize conversion.

And we have great digital utility through D apply and integration in Apple wallet as well as our mobile app.

This allows customers to access their various bank products their money market and high yield savings accounts as well as our credit card balances and transaction data.

This value proposition and seamless digital experience resonates very well with our customer leading to purchase volume growth of 36% versus the same period in 2019.

We're also seeing higher levels of engagement around the product and brand at spend per active account is up 40% versus 2019.

So we're very excited about our synchrony Mastercard.

It's an important offering within our product suite strategy that we believe will enable us to capture a larger portion of customers top of wallet spend and wished to drive highly scalable growth and above average returns to our business over the long term.

And with that I'll turn the call over to Brian.

Thanks, Brian and good morning, everyone <unk> third quarter financial results reflected broad based strength across our business highlighted by a double digit purchase volume increase and continued loan growth.

Improvement in our net interest margin historically, low losses, and delinquencies and continued cost discipline.

The combination of these results led to $1 $1 billion in net earnings or $2 per diluted share a return on average assets of four 9% and our return on tangible common equity of 41%.

These results are a true testament to the power of Synchrony is a unique business model, which builds on our deep domain expertise in consumer lending and Leverages dynamic digital capabilities Bluebird.

Through our comprehensive multi product suite to reach and serve deep and diverse universe of partners and customers.

Looking at our third quarter performance in greater detail, beginning with purchase volume, which grew 16% compared to last year and 60% compared to 2018, excluding Walmart demonstrates clear broad based strength in consumer demand.

This is also reflected in our purchase volume per count, which increased 11% compared to last year.

Dual card and Cobranded cards accounted for 40% of the purchase volume in the third quarter and increased 29% from the prior year on a loan receivable basis, excluding the impact of the reclassification of the GAAP portfolio to held for sale dual and co branded cards accounted for 24% of the portfolio and increased 4% from the prior year.

Average active accounts increased 5% compared to last year in new accounts increased 17% totaling more than 6 million new accounts in the third quarter were $17 5 million new accounts year to date.

In late August we reached an agreement for the sale of the GAAP portfolio, which led to the reclassification of $3 5 billion of loan receivables to held for sale and therefore reduce our ending loan receivables balance.

Adding the impact of the reclassification loan receivables would have increased by 2% versus the prior year as the period strong purchase volume growth was largely offset by a persistently elevated payment rate.

Payment rates for the third quarter was approximately 200 basis points higher when compared to last year.

Interest and fees on loans increased 2% compared to last year, reflecting similar growth in average loan receivables.

Net interest income was 6% higher than last year, primarily reflecting a decline in interest expense due to lower benchmark rates.

<unk> were $1 $3 billion in the third quarter and $6 three 8% of average receivables.

The $367 million year over year increase primarily reflected the impact of the lower provision for credit losses, and continued strong program performance, including growth and improvement in net interest income.

To put this in context remember that our studies are designed to align interest between ourselves and each of our partners. This means driving growth in attractive risk adjusted returns enhancing program profitability.

This allows each partner to share the progress performance, so when profitability expands our partners participate in that upside.

So now when you think about the combined $1 $4 billion a year over year improvement in net interest income net losses and the reserve change we shared at $367 million of that through the RSA.

Focusing our credit performance provision for losses was $25 million included in this quarters provision was reserve release of $407 million, which incorporated our continued strength in credit performance more optimistic macroeconomic environment and the impact of reclassifying, our GAAP portfolio loan receivables to held for sale.

This resulted in a reserve reduction of approximately $247 million.

Other income decreased $37 million generally, reflecting higher loyalty program costs from higher purchase volume during the quarter.

Other expense decreased $106 million compared to the prior year as you recall last year, we recognized an $89 million restructuring charge and we continued to see favorability from lower operational losses.

Moving to slide eight and our platform results.

We saw a broad based purchase volume growth across all five platforms, reflecting strong consumer demand, our home and auto diversified value digital and health and wellness platforms, each experienced double digit year over year growth in purchase volume.

The 10% year over year increase in home and auto was generally driven by strong retail performance across almost all verticals, while purchase volume and diversified value increased 25%, reflecting the continued return to in person retail experiences.

In digital the 21% increase was due to broad based growth across our partners coupled with growth in our new programs with Verizon and venmo.

In health and wellness to 10% growth in purchase volume, primarily reflected consumers being more comfortable with the environment and undergoing planned procedures.

Meanwhile, purchase volume grew a more modest 2% in lifestyle, reflecting broad based growth across the platform, but having a tough comparable to last year's strong growth in power sports.

Loan receivable growth trends by platform generally reflected modest growth rates versus the prior year as higher purchase volume was largely offset by elevated payment rates.

The one exception being in our diversified and value platform, which was impacted by store closures in 2020.

Average active account trends range on a platform basis.

But by as much as 10% diversified value and 7% in digital while home and auto and health and wellness average active accounts were generally flat.

The active account growth in diversified value largely reflected the return to in store retail experiences.

Digital active accounts were up versus prior year due to greater engagement across our existing customer base as well as the impact of recent program launches.

Interest and fee trends were generally improved across the platform with the exception of diversified value, which is down due to lower receivables.

I'll move to slide nine to discuss net interest income and margin trends.

The accumulated savings by consumers, resulting from stimulus forbearance and lower discretionary spending continue to impact the payment rates during the third quarter.

Payment rates were approximately 260 basis points higher than our five year historical average.

It said, we've begun to see some signs of moderation in certain cohorts as payment rate was about 200 basis points higher year over year compared to almost 300 basis points higher year over year comparison in the second quarter.

We expect the <unk> to gradually normalize as consumer spending remains robust excess savings have peaked and widespread forbearance dissipates.

Interest and fees were up approximately 2% in the third quarter reflect the average loan receivable growth.

Net interest income increased 6% from last year, reflecting the year over year improvement in interest and fees as well as lower interest expense for the period.

Net interest margin was 54, 5% compared to last year's margin of 13, 8%.

165 basis point improvement year over year, driven by the mix of interest, earning assets and favorable interest bearing liabilities cost.

More specifically the mix of loan receivables as a percent of total earning assets increased by 550 basis points from 78, 3% to 83, 8% driven by lower liquidity held during the quarter.

This accounted for a 106 basis point increase in our net interest margin.

Interest bearing liabilities cost were $1 three 1% a year over year improvement of 59 basis points, primarily due to lower benchmark rates and funding mix.

This provided a 51 basis point increase in our net interest margin.

The loan receivables yield was $19 five 9% a year over year improvement of 10 basis points. This resulted in an eight basis point improvement in our net interest margin.

Next I'll cover our key credit trends on slide 10.

First let's discuss our delinquency trends were higher payment trends have continued to drive year over year improvements are.

Our 30, plus delinquency rate was 2.42% compared to $2 six 7% last year.

Our 90, plus delinquency rate was one 5% compared to $1 two 4% last year.

It should be noted that removing the impact of the gap program from the third quarters of this year and last year. The 30, plus delinquency metric would have been down about 40 basis points versus 25 basis points and the 90 plus metric would be down about 25 basis points instead of 19 basis points.

And in terms of our portfolio is loss performance, our net charge off rate was two 8% compared to 442% last year.

This year over year improvement was primarily driven by strong delinquency trends we've experienced.

Our allowance.

Credit losses as a percent of loan receivables was 11 two 8%.

Let's move to slide 11 and discuss expenses.

Overall expenses were down $106 million or 10% from last year to $961 million, primarily reflecting the impact of the prior year's restructuring charge of $89 million and lower operational losses.

The efficiency ratio for the third quarter was 38, 7% compared to 39, 7% last year.

This metric remains elevated relative to our historical average due to lower revenue, resulting from the impact of higher payment rate and lower average receivables.

We continue to maintain a disciplined focus on cost containment, while we make strategic investments in our business to deepen our competitive advantage and drive long term value for shareholders.

Moving to slide 12.

Given the reduction in loan receivables in 2020, and early 2021, coupled with the strength of our deposit platform. We continue to carry a higher level of liquidity.

We believe it is prudent to maintain a higher liquidity level during uncertain and volatile periods. We continue to actively manage our funding profile to mitigate excess liquidity and optimize our funding profile.

As a result of this strategy there was a shift in our funding mix during the third quarter.

Our deposits declined by $3 $2 billion from last year, and our securitized and unsecured funding sources declined by $3 billion.

This resulted in deposits being 82% of our funding compared to 80% last year with securitizing unsecured funding each comprising 9% of our funding sources at quarter end.

Total liquidity, including Undrawn credit facilities was $18 4 billion, which equated to 20% of our total assets down from 28% last year.

Before I provide detail on our capital position. It should be noted that we elected to take the benefit of the transition rules issued by the joint Federal banking agencies, which has two primary benefits first it delays the effects of the seasonal transition adjustment for an incremental two years and second it allows for a portion of the current Purion <unk>.

<unk> to be deferred and amortized with the transition adjustment.

With this framework we ended the quarter at 17, 1% CET one under the seasonal transition rules 130 basis points above last year's level of 15, 8%.

The tier one capital ratio was 18% in the seasonal transition rules compared to 16, 7% last year.

The total capital ratio increased 120 basis points to 19, 3%.

And the tier one capital plus reserves ratio on a fully phased in basis decreased to 26, 6% compared to 27, 3% last year.

During the quarter, we returned $1 4 billion to shareholders, which included $1 3 billion in share repurchases and $124 million in common stock dividends.

Our business generates strong returns and considerable capital, resulting from our commitment to drive growth at appropriate risk adjusted returns the scalability of our technology platform and our ongoing cost discipline.

We will continue to take the opportunistic approach to returning our excess capital to shareholders as our business performance and market conditions allow subject to our capital plan and any regulatory restrictions.

Finally, let me focus on our outlook for the fourth quarter, which is summarized on slide 13 of our presentation.

While there are a number of external variables that are difficult to predict with precision. We generally expect the third quarter's key operating trends to be stable in the fourth quarter underpinning our forecast as a stable and improving macroeconomic environment and the pandemic continue to be largely in control.

We expect strong consumer demand through the holiday season to support continued strength in purchase volume. This strength, partially offset by continued elevation in payment rates should lead to a modest growth in receivables.

Our net interest margin will likely be consistent with <unk> 21.

Our provision for credit losses will continue to reflect the impact of asset growth credit performance and macroeconomic factors as well as continued reserve reductions related to the gab portfolio.

As credit losses begin to normalize we would expect the RSA as a percent of average loan receivables to begin to moderate.

Lastly, turning to operating expense, we expect the acceleration in purchase volume to contribute to a slight sequential increase in absolute dollars for the fourth quarter.

That said, we continue to expect the full year operating expenses to be down compared to 2020.

As we close out the year and look forward to the future. We're excited about the opportunities we see to continue to drive strong financial results and shareholder value.

We are well positioned to execute on the strategy, we laid out during our investor day, and drive sustainable growth and attractive risk adjusted returns simply by continuing to leverage our inherent core strengths the breadth and depth of our business model the scalability of our innovative digital capabilities and customer lifetime value expansion, we drive through our diversified products.

Wheat and powerful value propositions.

I'll now turn the call back over to Brian for his final thoughts.

Thanks, Brian.

I'm really proud of the results that we as a team continued to deliver for synchrony as partners customers and stakeholders.

We have a truly unique understanding of the wide range of needs that our partners and customers seek to address at any given time.

And our differentiated approach to addressing those needs enables us to deliver solutions and experiences that deeply resonate well.

Whether it's through the optionality embedded within our diverse product suite and customize value propositions or the many ways in which we power the connection between our partners and customers Synchrony continues to reach engage and serve more customers and drive greater more sustainable outcomes for our stakeholders.

With that I'll turn the call back to Catherine to open the Q&A.

That concludes our prepared remarks, we will now begin the Q&A session. So that we can accommodate as many of you as possible I'd like to ask the participants to please limit yourself to one primary and one follow up question.

Additional questions the Investor relations team will be available after the call operator, please start the Q&A session.

Thank you we will now begin the question and answer session. If you have a question. Please press Star then one on your Touchtone phone.

To be removed from the queue. Please press the pound sign or the husky, if youre using a speakerphone you may need to pick up the handset first before pressing the numbers. Once again if you have a question. Please press Star then one on your Touchtone phone, we have our first question from Betsy <unk> with Morgan Stanley.

Yeah.

Hey, good morning.

Good morning, Beth good morning Betsy.

Just had a couple of questions wanted to understand what you're thinking about with regard to.

The purchase volume and the spend volume that you've been generating so far I know, it's been accelerating it feels like it's a little bit light of some of the general purpose card activity that we've seen out there and would want to get your thoughts on that.

Yeah, Let me start and then Brian can jump in if he has other comments Betsy.

I would say is in comparison to general purpose cards, they had a larger dip and larger exposures to some <unk> and some other purchases that we did not drop as much as them last year. So I think when we look at the purchase volume first of all is broad based across all our platforms.

We have seen really solid performance the exception being lifestyle, which again had a very difficult comp last year with regard to power sports and outdoor power equipment, but when we looked at it through the quarter. It was actually incredibly consistent from the first week of the quarter and each week as we moved throughout the quarter and Thats really extended in here through the first couple of weeks.

October so we are very pleased about the activity level on the card is very broad based even though little exposure that we had to with with.

Travel and entertainment, we saw that pop up with our travel being up 75% on our either co branded card or the synchrony Mastercard restaurants were up 44%. So we're seeing that growth, but our our business is very consistent and we think that's really strength as we kind of move through here into the fourth quarter.

I think the only thing I would add that we're also seeing really good growth on new accounts and so that's really seeding. What we think is going to be strong purchase growth as we move into 'twenty. Two so new accounts were up 17% when you adjust for warmer up 37%. So really good growth on our new accounts, which is really a good indicator I think for for.

The quarters to come.

Yeah, No I got that that was that was definitely impressive.

And then when I'm thinking about the outlook here I know, there's a lot of verbiage around moderately.

Up and down and things like that.

I just wanted to hone in on the Rsi and understand how we should be thinking about that realize that the profitability of the program is up this quarter given the strength in NIM and given the.

Strength in credit I guess, I'm wondering as I think forward.

How to think about that RSA trajectory.

Because you know the rate of change in those two categories. Obviously it starts to come down in credit starts to build but then at the same time.

There's marketing and other types of expenses that come into that.

RSA and I'm wondering how I should think through the degree to which.

Yes.

Be angling to.

Yes, so Betsy and I just want to go back and continue to ground home. The fact that the <unk> are working as they're designed right where the profitability of the company as it expands we're going to share more on the RSA.

So that is that is by design.

The buffer we all want went into downside is but we prefer the upside so right now we're just going to we're going to pay more so I think as you think about.

The trajectory as you move forward, it's going to move more in line with the NIM of the business and the net charge offs right. So we would expect.

Charge offs here, probably at a trough.

And were being to go up so as the charge offs begin to increase that is going to go directly to throw in there is not really a lag effect when it comes to charge offs through the RSA.

And I think as you think about the margin of the business and the revenue side of the business as delinquencies began to rise. Your revenue goes up so that that will flow through and then we should start to get the write offs come through the NIM will come down a little bit. So I think it's going to move hopefully in parallel the only lag effect is on the.

The change in reserves, but it should move with the business and again, we think we're probably at the trough on delinquencies now, but we'll see how it develops but we're pleased with the performance. We're pleased with how the RSA actually move because it moved in line with the business to business results Yep. Thanks.

Thank you guys.

And thank you we have our next question from John Hecht with Jefferies.

Hey, guys. Good morning, Thanks for taking my questions.

Yes.

New accounts up 17% I'm wondering can you give us.

An idea of how much have any of that is coming from the new channels like Verizon and venmo versus just deeper penetration.

Yeah.

Seasoned partnerships.

Yeah, John the way I would frame it is the new programs why they are performing with our expectation with regard to account performance, that's not really going to be large enough to be a driver in our business are in our business given the scale.

So we really see it in some of the traditional retailers that have opened up and return to that in store retail experience as well as the continued expansion inside the digital.

Programs and platforms that we have so it's really fairly broad based we have not seen any areas where lag behind I think as people have really started to engage kind of post pandemic, if I caught that.

In shopping experiences and I think he goes back to the multi products that we have it goes back to the compelling value propositions, we have and it's broad based so we expect that to continue into the into the fourth quarter and into the holiday season, Yes, John I would say and it's obviously a combination of venmo.

Yes, Verizon they got Walgreens.

Very attractive new value prop at Sam's club.

But I also attribute a large portion to it.

The digital investments that we've been making so we have made it so much easier to apply.

Whether you are in store on your phone online.

You can really do it in a matter of seconds now you just put in a couple of fields you do it right on your phone, even if you're even if you're in store by scanning a QR code.

So just making it easier to apply I think all the.

All the macro tailwind there certainly there in terms of what we're experiencing in the business, but this is where the digital investments that we've been making over the past five years are really starting to pay off.

Okay. That's helpful. Thanks, and then second question is.

Can you just give us what the remaining reserve release for the GAAP.

Yes, so John I would say the overall provision was around $400 million. So you've got about $150 million more over the next couple of quarters to come through the exact timing of that and the cadence will really depend upon the performance of the portfolio as we move through but obviously the first piece is always the biggest in the held for sale.

<unk>.

Okay, great. Thanks, guys. Thanks.

Thanks, Josh.

Our next question is from Rick Shane with J P. Morgan.

Thanks, everybody and good morning.

I'd like to talk a little bit about the online sales metric that you posted which is 40%.

And I'm curious, where do you think that is versus the peer average on general purpose and how it compares to your general purpose because as we think about the resumption of spend as the economy reopens Im wondering if theres leverage there because you do.

Q3 2021 Synchrony Financial Earnings Call

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