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.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • 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.