Benzinga | Apr 13, 2021 06:13AM EDT

Synchrony Financial Will Not Renew Gap Inc. Partnership, Will Redeploy Approximately $1B In Capital; Says Expects Program Exit Will Be Accretive To EPS

Synchrony will not renew its financing partnership with Gap Inc. when it expires on April 30, 2022. Synchrony was unable to reach contractual and economic terms with Gap that made sense for our company and our shareholders.

The portfolio represents approximately 5 percent1 of Synchrony's loan receivables. Synchrony expects to recognize a gain on sale of the portfolio in the second quarter of 2022 and will redeploy approximately $1 billion of capital to repurchase shares2 and invest in higher growth programs. Synchrony expects that exiting the Gap partnership will be EPS neutral relative to current program economics and accretive to expected renewal terms.



All Gap and affiliated brand credit cards issued by Synchrony can continue to be used through April 30, 2022.