GE's Spin-off of GECRB Details - Synchrony Financial

[mj]

http://dealbook.nytimes.com/2014/03/13/g-e-files-to-spin-off-retail-finance-unit/?_php=true&_type=blogs&_r=0 plus the SEC filing is on EDGAR. For the finance & credit geeks out there ... the SEC filing has some interesting facts... the "top 10" that jumped out for me:

 

1. Nearly 50% of their receivables come from 5 programs - GAP, JCP, Lowe's, Sam's, Walmart.

 

2. JCP and Walmart alone are approx. 10% of total receivables

 

3. 2 of the top 24 programs are not expected to continue beyond 2014 (not named). PayPal program expected to extend for 2 more years after the 2014 expiration, but not expected to extend beyond that (No surprise, PayPal owns BML and is now partnered with Comenity)

 

4. 73.6% of card balances are private label, 22.4% are co-brand (Visa/MC/Disc/Amex). 28.1% of private label card balances are carried under "promotional financing" (0% for x months, etc.). 18 out of 24 retail programs offer co-brand cards.

 

5. Total active accounts of 45.6M in 2013 (43.2M and 42.0M in 2012 and 2011)

 

6. Average purchase volume $1,658, $1,602, and $1,490 (2013, 2012, 2011)

 

7. Average balances $782, $738, $683 (2013, 2012, 2011)

 

8. For credit quality, they state ...

"Our consumer active accounts had an average FICO score of 714, and our total loan receivables had a weighted average consumer FICO score of 696, in each case at December 31, 2013. In addition, 71.3% of our portfolio’s loan receivables are from consumers with a FICO score of greater than 660 at December 31, 2013. Our over-30 day delinquency rate at December 31, 2013 is below 2007 pre-financial crisis levels. We have a seasoned customer base with 32.7% of our loan receivables at December 31, 2013 associated with accounts that have been open for more than six years. Our portfolio is also diversified by geography, with receivables balances broadly reflecting the U.S. population distribution"

 

9. FICO bands reported: 66% of accounts are 671 or higher (strong), 19.8% are 626-670 (moderate), and 14% are 625 or less

 

10. "Unused credit card lines available to our customers totaled $277 billion and $256 billion at December 31, 2013 and 2012, respectively"

-- yup, they have definitely been growing credit lines as we have all seen here!

[Rogue]

Thanks for the post and your synopsis of the SEC filing!

Edited March 14, 2014 by Rogue

[EvilMan]

I wonder what that means to us GE Paypal account holders. I guess my large credit line will be of no use in the coming years!

[moosetracks]

Damn guess I better terminate all my GECRB accounts now, I am not interested in a Finance company reporting on my reports and dropping my score. Will be renamed 'Synchrony Financial'