Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

SYNCHRONY FINANCIAL

(SYF)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Gap to Replace Longtime Credit-Card Issuer Synchrony With Barclays -- Update

04/13/2021 | 05:49am EDT

By AnnaMaria Andriotis

Gap Inc. is parting ways with its longtime credit-card issuer, Synchrony Financial, and moving the business to Barclays PLC, according to people familiar with the matter.

Barclays will take over Gap's private-label and co-branded credit cards, including Athleta, Banana Republic and Old Navy, the people said. The portfolio includes some 11 million open card accounts, some of the people said, with total balances of roughly $3.8 billion at the end of March.

Synchrony has been issuing cards for Gap -- one of its five largest retail card partners -- for about 22 years. The relationship, one of the bank's longest-running card partnerships, includes private-label cards that can be used only at company stores and co-branded credit cards that cardholders can use at nearly any merchant. Its Gap contract is scheduled to end in April 2022.

In a regulatory filing early Tuesday, Synchrony confirmed that Gap won't renew the card deal when it expires. The bank said it expects to recognize a gain from the sale of the card portfolio and will spend about $1 billion to repurchase shares and make investments.

Gap marks the second major loss for Synchrony in recent years. Walmart Inc. in 2018 decided to end its long-running partnership with the bank, the largest U.S. issuer of store credit cards, and switched to Capital One Financial Corp. The Gap portfolio accounts for about 5% of Synchrony's $78 billion in total balances.

Barclays has been looking to expand beyond the airline, hotel and cruise line credit cards that dominate its U.S. portfolio. The Gap account is appealing because it includes many creditworthy cardholders. Some of the cards, in particular those issued to Athleta and Banana Republic customers, tend to attract more affluent borrowers, according to people familiar with the matter. Slightly more than five million of the roughly 11 million total Gap accounts are used at least once a month, one of the people said.

Gap is undergoing a revamp, closing hundreds of Gap and Banana Republic stores. Gap in March projected that net sales would increase in 2021.

Gap executives last year told Synchrony that the retailer was going to issue a request for proposals from other card issuers to get a better idea of its options, according to people familiar with the matter.

One of the items on Gap's wish list was for the card issuer to take on more of the program's costs, people familiar with the matter said. Under the deal with Synchrony, the people said, Gap incurs about 80% of the card program's costs, including marketing and fraud-related charges. Gap also receives about 80% of the revenue produced by the cards, including from the interest charges that cardholders pay on balances and the interchange fees that are generated when cardholders use their Gap cards at other merchants, they said.

Gap also wanted guaranteed revenue from the deal, one of the people said.

Separately, Gap wants its relaunched card program to closely tie into a rewards program that it launched across its retail brands last year, according to a person familiar with the matter.

Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com

(END) Dow Jones Newswires

04-13-21 0749ET

Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC 2.00% 176.22 Delayed Quote.17.78%
CAPITAL ONE FINANCIAL CORPORATION 1.53% 163.85 Delayed Quote.64.43%
DJ INDUSTRIAL 0.51% 35108.28 Delayed Quote.14.55%
SYNCHRONY FINANCIAL 2.04% 48.185 Delayed Quote.36.01%
THE GAP, INC. 0.71% 28.91 Delayed Quote.42.15%
WALMART INC. 0.19% 142.3 Delayed Quote.-1.45%
All news about SYNCHRONY FINANCIAL
09:25aSYNCHRONY FINANCIAL : Morgan Stanley Adjusts Synchrony Financial PT to $65 From ..
MT
07/22SYNCHRONY FINANCIAL : Announces Quarterly Common Stock Dividend of $0.22 Per Sha..
PR
07/22Synchrony Financial Declares Quarterly Cash Dividend, Payable on August 12, 2..
CI
07/22SYNCHRONY FINANCIAL : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIO..
AQ
07/22SYNCHRONY FINANCIAL : Announces Expansion in Equine Market With New CareCredit F..
PU
07/22Synchrony Announces Expansion in Equine Market with New CareCredit Financial ..
CI
07/21Today on Wall Street: Earnings season picks up pace
07/21ANALYST RECOMMENDATIONS : Avast, Asos, Compass, Halliburton, Intertek...
07/21SYNCHRONY FINANCIAL : DA Davidson Adjusts Synchrony Financial's Price Target to ..
MT
07/20Financials Up With Long-Dated Treasury Yields -- Financials Roundup
DJ
More news
Financials (USD)
Sales 2021 10 291 M - -
Net income 2021 3 684 M - -
Net Debt 2021 13 001 M - -
P/E ratio 2021 7,33x
Yield 2021 1,89%
Capitalization 26 895 M 26 895 M -
EV / Sales 2021 3,88x
EV / Sales 2022 3,46x
Nbr of Employees 16 500
Free-Float 67,4%
Chart SYNCHRONY FINANCIAL
Duration : Period :
Synchrony Financial Technical Analysis Chart | SYF | US87165B1035 | MarketScreener
Technical analysis trends SYNCHRONY FINANCIAL
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Last Close Price 47,21 $
Average target price 55,45 $
Spread / Average Target 17,5%
EPS Revisions
Managers and Directors
Brian D. Doubles President, Chief Executive Officer & Director
Brian J. Wenzel Chief Financial Officer & Executive Vice President
Margaret M. Keane Executive Chairman
Carol Juel EVP, Chief Technology & Operating Officer
Jeffrey G. Naylor Lead Independent Director
Sector and Competitors
1st jan.Capi. (M$)
SYNCHRONY FINANCIAL36.01%26 895
BAJAJ FINANCE LIMITED20.74%50 521
ORIX CORPORATION21.58%21 139
MUTHOOT FINANCE LIMITED27.72%8 324
ONEMAIN HOLDINGS, INC.26.10%8 126
PIRAMAL ENTERPRISES LIMITED62.15%7 398