30-plus delinquency rate improved to 4.18%, down 29 basis points year-over-year; net charge-off rate decreased to 5.7%, down 72 basis points.
Allowance for credit losses as a percent of loan receivables was 10.59%, down 28 basis points from the prior quarter.
Capital ratios improved with CET1 at 13.6%, Tier 1 capital ratio at 14.8%, and total capital ratio at 16.9%.
Deposits represented 84% of total funding; total liquid assets increased 9% to $21.8 billion.
Net interest margin increased 32 basis points to 14.78%, supported by higher loan receivable yield and lower funding costs.
Net revenue decreased 2% to $3.6 billion, while net interest income increased 3% to $4.5 billion, driven by a 10% decrease in interest expense and a 1% increase in interest and fees on loans.
Provision for credit losses decreased by $545 million to $1.1 billion, including a $265 million reserve release and a $210 million decrease in net charge-offs.
Purchase volume was $46 billion, down 2% year-over-year, impacted by credit actions and selective consumer spend behavior.
Returned $614 million to shareholders in Q2, including $500 million in share repurchases and $114 million in dividends.
Synchrony delivered net earnings of $967 million or $2.50 per diluted share in Q2 2025, with a return on average assets of 3.2% and return on tangible common equity of 28.3%.
Adjusted earnings per share were $0.42 compared to $0.44 a year ago, impacted by lower Iraq revenues and higher interest expense.
Adjusted operating margin remained stable at 19% year-over-year despite higher consumer fraud losses and lower Iraq contributions.
Branded digital business increased transactions by 9% and adjusted revenue by 6%.
Cash flow from operations was $148 million year-to-date, up from $60 million prior year, with capital expenditures down 15%.
Consumer money transfer transactions declined 3% in the quarter, while cross-border principal grew mid-single digits on a constant currency ex Iraq basis.
Consumer Services adjusted revenue grew 40% driven by Eurochange acquisition and strong European travel.
Returned over $150 million to shareholders in Q2 and over $300 million in the first half of 2025, representing over 10% cash return versus market cap.
Western Union reported second quarter 2025 adjusted revenue of $1.026 billion, down 1% year-over-year excluding Iraq impacts.
Dafinchi