Synchrony Financial (NYSE:SYF) Q2 2020 Earnings Conference Call - Final Transcript

Jul 21, 2020 • 08:30 am ET


Synchrony Financial (NYSE:SYF) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Synchrony Financial Second Quarter 2020 Earnings Conference. My name is Brandon and I'll be your operator for today. [Operator Instructions] Please note this conference is being recorded.

And I will now turn it over to Greg Ketron, you may begin sir.

Greg Ketron

Thanks, operator. Good morning, everyone, and welcome to our quarterly earnings conference call. Thanks for joining us. 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 This information can be accessed by going to the Investor Relations section of the website.

Before we get started, I want 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 in discussing 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 nor guarantee the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized webcast are located on our website.

On the call this morning are Margaret Keane, Brian Wenzel and Brian Doubles. I will now turn the call over to Margaret.

Margaret Keane

Thanks, Greg. Good morning, everyone. When we last spoke, the world was facing a global health crisis and broad economic disruption. Sadly, while we saw some bright spots and began reopening here in the U.S., we've seen a resurgence of the COVID-19 virus causing continued disruption to our lives, businesses and economy.

In addition, following more senseless loss of life within the black community, our country is awakening to the need to meaningfully address racial injustice and equality. Both challenges are difficult, emotional and take hard work to address. I'm proud of how Synchrony continues to successfully manage through these extraordinarily challenging times. Our decisions are guided by putting people first.

With COVID, we are focused on the health and safety of our employees and their families, providing support for our customers, and helping our partners get back up and running.

In the fight for equality, we are implementing new actions to increase diverse employee talent at all levels, grow business relationships with diverse suppliers and small businesses, investing in diverse markets and working with our partners, customers and employees to address deeply rooted gender and racial inequality. With our values as our guide, we are resolute in addressing these challenges and emerging a better company and country.

Now, I'll turn to the second quarter results on slide 3. Earnings were $48 million or $0.06 per diluted share. This included an increase in provision for credit losses as a result of the CECL implementation this