The Stamford, Connecticut-based company reported earnings of $731 million, or $1.15 a share, compared with $783 million, or $1.09, a year earlier. Adjusted earnings for the latest quarter came to $1.10 a share, beating analysts' estimates of $1.07.
Provision for loan losses totaled $1.1 billion, missing calls for $1.25 billion. Revenue totaled $3.1 billion, short of Wall Street's estimate for $3.15 billion.
Net interest income fell 7.3% to $4.03 billion and was related to the Walmart consumer portfolio sale.
In November 2018, Walmart (WMT) - Get Report filed a lawsuit against the bank that alleged it breached the terms of their long-running credit-card deal. The world's largest retailer was seeking damages of at least $800 million. Synchrony called the suit “baseless." In January 2019, Walmart agreed to drop the lawsuit.
Deposits were $65.1 billion, up 2% from the year-ago quarter. Provision for loan loss fell 24% year over year to $1.1 billion primarily driven by lower core reserve build and reduction in net charge-offs.
Purchase volume was flat at $40.2 billion, but up 7% on a core basis.
“2019 marked another year of significant transformation for Synchrony," CEO Margaret Keane said in a statement.
Discover Financial DFS, meanwhile, was also declining Friday after posting mixed fourth quarter, leading multiple analysts to lower the stock's rating.