Synchrony reported on Friday its fourth quarter earnings for the period ending December 31, 2021 of$813 million, or$1.48 per share, on revenue of$2.17 billion.

Analysts had estimated an EPS of$1.47. The financial services company narrowly squeezed by with$1.48 per share, reporting a 10% increase in net earnings over last year.

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Synchrony reported a 20% increase in new accounts, with a 5% increase in active accounts and a 18% increase in purchase volume to$47.1 billion. In a press release, the company indicates the growth is due to strong consumer spending, new account originations and renewed partnerships. 

Credit card spending for the quarter was up 2.3% to$1.8 billion. Interest and fees on loans for the quarter grew 2% to$4 billion. The company reported issuing$85.1 billion in loans, up 4% from the previous year.

On the earnings conference call, Synchrony CFO and Executive Vice President Brian Wenzel reported that dual and co-branded credit cards made up 42% of the quarter's purchase volume, up 30% from last year. He also said that individual purchase volume per account was up 13% over last year, and 22% from 2019.

"For the upcoming year, we expect consumer demand to remain robust, supporting broad-based purchase volume growth across the various industries and markets we serve," Wenzel said. The company expects payment rates to moderate and credit trends to normalize in 2022.

Company expenses are up 5% over the year prior. However, Wenzel indicates this is due in part to an increase in minimum wage for its employees to$20 during the third quarter, and higher incentive compensation. "We will continue to take a disciplined approach to expense management while also maintaining the pace of strategic investments in the business," Wenzel said.

Despite the increase in expenses, Synchrony CEO and President Brian Doubles said in the press release that the company's record purchase volume, expanding list of partners, and a focus on digital products and capabilities has leadership optimistic going into 2022.

"As we continue to execute on these and the many opportunities ahead, we are well-positioned to reach and serve even more partners and customers and, in so doing, drive sustainable growth, attractive returns and considerable capital for our stakeholders over the long term," he said.

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