Credit Quality ConcernsDelinquencies were 5.0%, 11% above pre-pandemic levels, suggesting deteriorating credit quality which could lead to higher loan losses for the company.
Earnings PressureNet interest income was modestly below expectations, highlighting potential challenges in revenue generation amid a competitive and changing interest rate environment.
Regulatory ConcernsThe ruling is expected to reduce SYF's revenues by $800M per quarter, starting in 4Q24, due to changes in late fees, presenting a significant downward pressure on future earnings.