VALUES BUILDING VALUE Synchrony Financial Annual Report 2015

VALUES BUILDING www.synchronyfinancial.com VALUE Annual Report 2015 About Synchrony Financial Synchrony Financial (NYSE: SYF) is one of the nation’s premier consumer companies. As the largest provider of private label cards in the *, we provide a range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers. We deliver innovative analytics, payments, loyalty and financing solutions to help generate growth for our partners and offer financial flexibility to our customers. Through our partners’ over 350,000 locations across the United States and Canada, and their websites and mobile applications, we offer our customers private label and co-branded Dual Card™ credit cards, promotional financing and installment lending, and loyalty programs. Through Synchrony Bank, we offer FDIC-insured savings products. Engage with us at: www.synchronyfinancial.com

* Based on purchase volume and receivables. The Nilson Report (April 2015, Issue #1062) — based on 2014 data.

Our Purpose

We pioneer the future of financing, improving the success of every business we serve and the quality of each life we touch.

Performance Metrics

Purchase Volume Loan Receivables Platform Revenue 1 Net Earnings ($ billions) ($ billions) ($ millions) ($ millions)

$113.6 $10,833 $2,214 $103.1 $68.3 $10,126 $2,109 $61.3 SYNCHRONY FINANCIAL (NYSE: SYF) 777 Long Ridge Road Stamford, CT 06902

GENERAL INQUIRIES 866-419-4096 ’14 ’15 ’14 ’15 ’14 ’15 ’14 ’15 INVESTOR INQUIRIES

1 Non-GAAP measure. Platform revenue represents interest and fees on loans, other income, less retailer share arrangements. 855-818-3056 See page 90 in our Form 10-K for reconciliation to the most directly comparable GAAP measure. A Message From our CEO

A defining principle of our business for the past 80 years is the same one that will drive our success for the next 80 years: our values live in everything we do and create value for all our stakeholders — partners, customers, depositors, employees, shareholders, regulators and our communities.

Honesty, passion, driven, caring, responsible and bold — these are our values and they inspire and guide the actions of our more than 12,000 employees every day. I believe our values make good business sense and set us apart. What we do is important; how we do it is vital.

OUR VALUES: Our future

“Our values mark our past, inform our actions every day and inspire our future.”

Margaret Keane President and Chief Executive Officer

1 Driven to Deliver: An Extraordinary 2015 Being driven reflects our heritage, motivates us After another extraordinary year in 2015, our daily and propels our future. In 2015, this meant company stands poised at a critical crossroads. generating strong financial performance, winning Synchrony Financial is ready to innovate and and retaining partnerships, innovating across pioneer the future of financing, while upholding digital and mobile technologies, completing our our values and our longstanding commitment to transformation into a fully independent company, our partners and our customers. and delivering award-winning service to our partners and our customers. I am pleased to Being Bold: Innovation for 2016 and Beyond share some of the year’s highlights: New technologies are disrupting the payments space, offering new ways for consumers to obtain Financial Highlights credit and to pay for purchases. Our customers • Net earnings increased 5.0% from 2014 to are increasing their usage of online and mobile $2.2 billion. channels to apply for credit, service their accounts • Loan receivables grew 11.4% from 2014 to and purchase products. More than 35% of SYF’s $68.3 billion. 2015 credit applications were submitted through • During 2015, we financed $113.6 billion of a digital channel, and this number continues to grow purchase volume, up 10.1% from 2014. each year,consistent with the shift of consumer • Consumer banking reached $29.7 billion in shopping behaviors from in-store to online and deposits, up 50.8% over 2014. mobile platforms. Strategic and Operational Highlights At Synchrony Financial, we think of ourselves as an • We gained approval from the Federal Reserve 80-year-old startup that is committed to continuing Board to operate independently and separated to be an innovator in payments and financial fully from GE through the largest split-off services. We continue to innovate boldly to remain in history. at the forefront of these shifting dynamics. • We became a member of the S&P 500. Our bold commitment to innovation includes: • We forged new relationships, renewals and • Mobile Wallets. We want our partners and our programs with major partners, including customers to be able to use the mobile payment , PayPal, BP, Chevron, Sleepy’s, The technology of their . We continue to expand Container Store, Guitar Center and Athleta. the use of our credit cards within major mobile • CareCredit expanded its health and wellness wallets, including Apple Pay, Android Pay, network with VSP and Rite Aid, was selected as CurrentC and Samsung Pay. first-choice patient finance provider by Bosley, • Digital Apply and Service. We leverage our launched a new digital card, and extended its analytics and technology to make it easier national endorsement from the American Society and more efficient for our customers to shop. of Plastic Surgeons. Through our digital capabilities, our customers • We continued to strengthen security for our benefit from instant to credit, discounts, customers, including the reissuance of millions promotional offers and customer service online of Dual Cards™ with EMV chips. and on their mobile device. • We were cited for providing superior service and • Strategic Investments. We work closely with financial performance on BenchmarkPortal’s 2015 leaders in the mobile payments space to list of the Top 100 Call Centers, finishing second enhance our mobile solutions and drive an among all large-sized call centers (250+ agents). improved mobile shopping experience and • We launched our own affinity groups, including greater customer loyalty. With GPShopper, our People with Disabilities Network and Veterans a leading integrated mobile commerce platform, Network, earned a perfect score as a 2015 we launched native mobile applications for Best Place to Work for LGBT Equality, and CareCredit to offer providers a more secure convened for our inaugural Global Diversity way to engage with their patients and customers Network Symposium. via their mobile devices.

2 Platform Revenue ($ millions)

RETAIL CARD 69% /$7,425 PAYMENT SOLUTIONS 15% /$1,691 CARECREDIT • Digital Banking. We offer a range of FDIC-insured 16% /$1,717 deposit products to retail and commercial cus- tomers through a scalable online platform and a Loan Receivables new digital channel that dynamically adapts to ($ millions) all mobile, tablet and desktop browsers. These RETAIL CARD digital platforms deliver a seamless banking 69% /$47,412 experience and allow us to grow without relying PAYMENT SOLUTIONS on a traditional “brick and mortar” branch net- 20% /$13,543 work. We intend to add checking account, CARECREDIT and bill pay capabilities to our 11% /$7,335 product offerings. Earning this certification validates our work Our Passion: Our Partners in customer care and support, and reflects We are passionate about our partners’ businesses. the important value our customer