(Reuters) -Credit card-focused consumer banking firm Synchrony Financial (NYSE:SYF) reiterated its annual revenue forecast on Tuesday, signaling resilience despite economic worries stemming from uncertainties around U.S. trade policy.
U.S. banks that are reporting quarterly earnings have largely stuck to their previous forecasts, even as several businesses across sectors withdrew projections citing the tariff-driven turmoil.
Synchrony still expects its annual net revenue to be in the range of $15.2 billion to $15.7 billion and its loan growth to be in the low-single digits.
The Stamford, Connecticut-based bank’s net interest income, which is the difference between interest earned on loans and paid out on deposits, rose 1% to $4.46 billion in the first quarter on the back of lower deposit costs.
"As we look to the remainder of 2025 and beyond, Synchrony remains well-positioned to navigate the evolving economic landscape," Chief Financial Officer Brian Wenzel said.
Synchrony’s first-quarter net earnings available to common stockholders fell 43% to $736 million, or $1.89 per share, from a year earlier.
The prior-year quarter had included a $802 million gain from the sale of Synchrony’s Pets Best pet insurance business.
The bank has tightened its lending standards in recent years to keep a lid on credit deterioration and prioritize profitable growth. These moves have weighed on its new account and purchase volume growth in recent quarters.
Purchase volume, which is the total dollar amount of transactions processed on Synchrony’s cards less returns, fell 4% to $40.7 billion in the first quarter.
Executives had previously anticipated loosening credit restrictions in the second half of 2025 if delinquencies continued to improve.
Meanwhile, quarterly provision for credit losses was $1.49 billion, compared with $1.88 billion a year earlier.
Synchrony shares have plunged 27.3% this year, compared with a 12.3% decline in the benchmark S&P 500 index.
The bank has also authorized a $2.5 billion share buyback program through June 30, 2026.