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.
Average annualized loan growth was 5.3%, with average total deposits growing to over $37 billion.
Capital ratios improved with CET1 ratio approaching 11%, tangible common equity at 8.5%, and tangible book value per share up 13% year-over-year to $11.14.
Credit quality improved with total delinquency at 62 basis points, down 13 bps, and net charge-offs at 25 bps for the quarter.
Efficiency ratio remained favorable at 54.8%.
Linked-quarter revenue growth was 6.5%, driven by record net interest income of $347 million and noninterest income of $91 million.
Net income available to common shareholders was $130.7 million, or $0.36 per share, in Q2 2025.
Net interest margin expanded 16 basis points to 3.19%, the highest since Q4 2023.
Noninterest income reached a record $91 million, more than doubling over the last 10 years.
Operating noninterest expense was $246.2 million, with increases due to strategic hiring, technology investments, and mortgage down payment assistance program costs.
Pre-provision net revenue rose 16% from prior quarter to $192 million.
Provision expense was $24.9 million, supporting loan growth and charge-offs.
Annualized return on average assets was 113 basis points, up 3 basis points from the first quarter, with an efficiency ratio just below 60%.
Commercial loans totaled $2.94 billion, flat with March 31, 2025, and up 5% year-over-year, with commercial business loans up 2.4% during the quarter.
Consumer indirect balances declined 2.3% from March 31 and 7% year-over-year to $833.5 million, with improved credit metrics including a net charge-off ratio of 45 basis points, down from 103 basis points in Q1.
Net interest margin expanded by 14 basis points from the linked quarter and 62 basis points year-over-year, with net interest income growth of approximately 5% linked quarter and 19% year-over-year.
Noninterest expense was $35.7 million in Q2, up from $33.7 million in Q1, driven by timing, higher medical claims, staffing additions, and technology-related expenses.
Noninterest income was $10.6 million, up 2.4% from the first quarter, excluding a $13.5 million gain from the prior year insurance business sale.
Nonperforming commercial loans declined by $7 million from March 31 to June 30, 2025, with $2.5 million in commercial net charge-offs related to two longstanding nonperforming relationships.
Provision for credit losses was $2.6 million in Q2, down from $2.9 million in Q1, with a loan loss reserve coverage ratio of 104 basis points at June 30, 2025.
Second quarter 2025 net income available to common shareholders increased 4% to $17.2 million, with diluted EPS up 5% compared to the linked quarter.
Total deposits were down about 4% from March 31, 2025, due to seasonality and Banking-as-a-Service deposit outflows, with average deposits relatively flat year-over-year.
Total loans at period end were $4.54 billion, consistent with March 31, 2025, with average loans up 1% from the first quarter and 2% year-over-year.
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%.
Dafinchi