Synchrony Financial reported third-quarter net earnings attributable to common stockholders of $1.06 billion, or $1.60 per share, compared to $671 million, or 91 cents per share, in the prior-year quarter.
This included a $326 million pretax, $248 million after-tax, or 38-cents-per-share benefit from a reduction in the reserve related to the sale of the Walmart Inc. consumer portfolio, which was completed on October 11.
The S&P Global Market Intelligence consensus GAAP EPS estimate for the quarter was $1.39.
Net interest income for the quarter was up 4% year over year to $4.39 billion from $4.21 billion, primarily driven by growth in loan receivables.
Provision for loan losses declined 30% year over year to $1.02 billion from $1.45 billion largely driven by the reduction in reserves related to the Walmart portfolio.
Net charge-offs as a percentage of average loan receivables, including held for sale, was 5.35% compared to 4.97% in the prior year.