(RTTNews) - Synchrony Financial (SYF) reported a decline in second-quarter results, largely reflecting the Walmart consumer portfolio sale and impact of COVID-19.
Q2 net income of $37 million or $0.06 per share compared to $853 million or $1.24 per share last year.
Net interest income declined to $3.4 billion from $4.2 billion reported in the same period of last year.
Analysts polled by Thomson Reuters expected earnings of $0.15 per share on revenue of $3.61 billion for the quarter. Analysts' estimate typically exclude certain special items.
Provision for credit losses increased 40%, to $1.7 billion, mainly driven by the reserve increase for the projected impact of COVID-19 related losses and the prior year reserve reduction related to Walmart.
Meanwhile, Margaret Keane, Chief Executive Officer of Synchrony Financial, said, "As we navigate this new environment, we remain acutely focused on the future of our business. During the quarter, we successfully launched an exciting new program with Verizon and extended several programs, while also adding new partnerships. We believe we have an advantageous position as the shift to digital has accelerated—we will continue to prioritize investments to augment our digital assets and capabilities to meet the rapidly evolving needs of our cardholders and partners."
The stock has been trading in the range of $12.15 - $38.18 for the past one year, and closed Monday's trade at $22.38, down 83 cents or 3.58%.