Synchrony Falls After Lender Sets Aside More Money for Lossesby
Synchrony Financial fell after the issuer of private-label credit cards said it was setting aside more money for loan losses.
Synchrony shares tumbled 8.3 percent to $27.91 at 9:53 a.m. in New York, the most since Aug. 24 and the worst performance in the 92-company S&P 500 Financials Index. The stock has fallen 8.7 percent this year.
“While the loss rate in our portfolio is at historically low levels, we very recently finished our loss forecast, and we are now expecting a 20-30 basis point increase in our net charge-off rates as we look out over the next 12 months,” the Stamford, Connecticut-based company said Tuesday in a regulatory filing.