Synchrony Financial (NYSE:SYF) shares dropped more than 3% pre-market today following the company’s fourth-quarter earnings announcement. The financial services firm showcased strong performance, particularly in credit loss provisions and loan growth.

The company posted adjusted earnings per share of $1.91, narrowly exceeding analyst estimates of $1.89. Revenue for the quarter totaled $3.8 billion, slightly under the projected $3.84 billion. Despite the revenue miss, interest and fees on loans rose by 3% year-over-year to $5.5 billion, supported by an increase in average loan receivables.

Net earnings for the quarter soared 76% to $774 million, compared to $440 million in the same period a year ago. A key driver of this growth was a reduction in the company's provision for credit losses, which fell by $243 million to $1.6 billion. This decline was bolstered by a $100 million reserve release, contrasting sharply with the $402 million reserve build recorded in the prior year.

Synchrony highlighted the resilience of its diversified product portfolio, disciplined credit management, and adaptable technology platform as foundational elements of its strong performance. As the company enters 2025, its ability to effectively navigate credit markets and sustain growth across its loan receivables will remain pivotal in maintaining its upward trajectory.