Synchrony Financial’s chief financial officer, Brian Wenzel, said consumers are managing their finances well even as inflation and high gas prices continue to pressure household budgets. Speaking at the Barclays Global Financial Services Conference, Wenzel described spending and payment patterns as “holding very firm” and consistent with trends seen earlier in the year.
Consumer Credit Strength
Wenzel highlighted that credit metrics remain solid. “From a credit standpoint, you continue to see strength. Our entry rate into delinquency is better than 2018 and 2019, which is remarkable in this period given the affordability,” he said. “Consumers are being incredibly responsible at this point in the cycle.”
According to Synchrony’s monthly credit performance report, August delinquencies were 4.2%, unchanged from July and down 10 basis points from a year earlier. Net charge-offs came in at 4.9%, up 20 basis points from July but down 20 basis points from August 2025. Loan balances grew 2.8% year over year to $103 billion in August, accelerating from 2.3% growth in July.
Jefferies analyst John Hecht noted in a research note that the year-over-year trend line has been consistently growing and accelerating after turning positive in March. He expects continued acceleration in loan growth in the second half.
Inflation and Gas Prices Remain Headwinds
The improved credit and spending trends come against a backdrop of persistent inflation. Inflation has held at 3.4% for two months, and the national average price of gasoline is more than a dollar higher per gallon than it was a year ago, according to AAA. These factors continue to test consumer affordability, yet Synchrony’s data suggests consumers are coping.
Selective Credit Loosening
Synchrony has been cautious about where it loosens credit following tightening actions taken more than a year ago. Wenzel said the company is taking an idiosyncratic approach. “When we see pockets of opportunity where the performance of a product, a channel, a vertical makes sense, we are continuing to widen that aperture. It’s not broad based,” he said.
The company does not plan to release any credit reserves due to prevailing uncertainty. “The macro environment, while we feel good about it, while it’s being constructive for the most part for the U.S. consumer even in the face of affordability, there’s still downside risk,” Wenzel said.
Looking Ahead
Synchrony is also preparing for a possible uptick in delinquencies as it marks one year of originations on its Walmart program and as its credit actions mature. Wenzel’s comments suggest the company remains optimistic about consumer credit but is approaching the future with caution.