latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/synchrony-expects-54-increase-in-allowance-for-loan-losses-under-cecl-57111323 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Synchrony expects 54% increase in allowance for loan losses under CECL

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive

South State CenterState MOE Shows Even The Strong Need Scale To Thrive

Talking Bank Stocks, Playing The M&A Trade With Longtime Investor

Report: Kashkari Says Fed In Holding Pattern But Rate Cut Still Possible

Synchrony expects 54% increase in allowance for loan losses under CECL

Synchrony Financial estimates it will increase its allowance for loan losses by about $3.0 billion, or 54% from current levels, due to the adoption of the current expected credit loss model.

The company said the increase in allowance for loan losses will "result in a corresponding significant increase" to its allowance coverage ratio. Synchrony will record a net decrease of about $2.3 billion to its retained earnings upon CECL adoption in the first quarter, the company disclosed in its Form 10-K.

The decrease in retained earnings will reduce the company's common equity Tier 1 ratio by about 60 basis points per year during the phase-in period, which runs through 2023.