Synchrony Financial (NYSE:SYF) stock rose 3.62% (As on January 24, 11:08:24 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. The quarterly results have benefited from a rising loan receivables portfolio paving the way for higher interest and fees on loans. A growing purchase volume, resulting from increased contributions from its five sales platforms, also contributed to the upside. However, the quarterly results have been partly offset by rising benchmark rates, elevated expenses and reduced average active accounts. Total loan receivables of SYF were $92.5 billion, which rose 14.5% year over year and beat the estimate of $89.9 billion in the quarter under review. Total deposits of $71.7 billion advanced 15.2% year over year. Provision for credit losses more than doubled year over year to $1,201 million due to increased reserve build and elevated net charge -offs. Synchrony Financial’s purchase volume of $47,923 million increased 1.8% year over year. Interest and fees on loans grew 13.2% year over year to $4,576 million in the fourth quarter, higher than the estimate of $4,300.2 million. Net interest margin of 15.58% deteriorated 19 basis points year over year. New accounts totaled 6.4 million, down 13% year over year. Average active accounts of 68.4 million dipped 1% year over year.

Moreover, Home & Auto period-end loan receivables of $29,978 million improved 11.9% year over year in the fourth quarter. The improvement came on the back of increased purchase volume and moderated payment rates. Purchase volume advanced 8.6% year over year to $11,860 million, riding on rising Home spending and improved prices in furniture. Digital period-end loan receivables totaled $25,522 million, which rose 17.3% year over year in the quarter under review. Purchase volume grew 10% year over year to $14,794 million due to higher average active accounts and solid customer engagement. Diversified & Value period-end loan receivables of $18,617 million improved 15.8% year over year in the fourth quarter. Health & Wellness period-end loan receivables advanced 18.9% year over year to $12,179 million.

SYF in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share by 12.5%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7.2 percent to $4.11 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $3.93 billion.