Synchrony Financial SYF reported second-quarter 2022 adjusted earnings per share of $1.60, which surpassed the Zacks Consensus Estimate of $1.43. The bottom line, however, fell from the year-ago level of $2.12 per share.SYF’s net interest income increased 14.8% year over year to $3,802 million for the quarter under review, beating the Zacks Consensus Estimate of $3,680 million.SYF reported better-than-expected second-quarter results on the back of solid growth in average active accounts and a higher purchase volume. It also gained from solid contributions from all sales platforms. The results benefitted from increased interest and fees on loans. Yet, the results were partially offset by steep expenses.Synchrony Financial Price, Consensus and EPS Surprise Synchrony Financial price-consensus-eps-surprise-chart | Synchrony Financial QuoteQ2 Results in DetailOther income of $198 million surged 122.5% year over year, owing to the $120 million gain on sale from HFS portfolios’ conveyance.For the second quarter, total loan receivables increased 5.5% year over year to $82.7 billion. Total deposits amounted to $64.7 billion, up 8.1% year over year. Provision for credit losses significantly jumped to $724 million on the back of lower reserve release, partially offset by reduced net charge-offs.Its total, purchase volume for the second quarter jumped 12.1% year over year to $47,217 million. Interest and fees on loans increased 13.2% year over year to $4,039 million, thanks to growth in average loan receivables. Net interest margin was 15.6%, marking a 182-basis point rise.New accounts fell 6% year over year to 6 million. Average active accounts increased 4.3% year over year to 68.7 million.Total other expenses of $1,083 million increased 14.2% year over year for the quarter under consideration due to rising employee costs, information processing, marketing spending and other expenses. Efficiency ratio reached 37.7% in the quarter, marking a 190-basis point decrease.Individual Sales Platforms UpdateHome & Auto period-end loan receivables grew 9.4% year over year for the second quarter to $27,989 million. Purchase volume improved 11.9% year over year to $12,895 million, owing to consistent sound performances. Interest and fees on loans were up 11.6% year over year to $1,108 million.Digital loan receivables rose 13.6% year over year to $21,842 million due to strong purchase volumes. Purchase volume climbed 14% year over year to $12,463 million on the back of robust engagement across various programs. Also, continued momentum in newly launched programs aided volumes. Interest and fees on loans increased 18.7% year over year to $1,058 million.Diversified & Value period-end loan receivables increased 12% year over year to $16,076 million on the back of continued strength in purchase volume. Purchase volume improved 23.8% year over year for the quarter under review to $14,388 million due to higher client engagement and retailer performance. Interest and fees on loans increased 13.3% year over year to $826 million.Health & Wellness period-end loan receivables grew 14.9% year over year to $10,932 million and purchase volume advanced 15.2% to $3,443 million, highlighting broad-based growth across active accounts and increased spending in its dental, cosmetic and pet categories. Interest and fees on loans increased 23.1% year over year to $644 million.Lifestyle period-end loan receivables improved 7.8% year over year for the second quarter to $5,558 million. Purchase volume inched up 1.9% year over year to $1,431 million due to growth in Music, luxury and Specialty. Interest and fees on loans advanced 6.6% year over year to $194 million.Financial Position (as of Jun 30, 2022)SYF exited second-quarter 2022 with total assets of $95.2 billion, growing 3.5% year over year. Total borrowings of $12.2 billion dropped 9.7% year over year for the quarter under review.As of Jun 30, 2022, the company had cash and cash equivalents of $10.7 billion, which fell 3.9% year over year.SYF’s balance sheet was consistently strong during the reported quarter, with total liquidity of $18.9 billion, accounting for 19.8% of its total assets.Return on assets and equity were 3.4% and 24%, respectively, for the second quarter.Capital DeploymentDuring the second quarter, Synchrony Financial returned capital worth $809 million in the form of share buybacks of $701 million and common stock dividends of $108 million. The company currently has remaining share buyback authorization of $2.4 billion.2022 ViewSynchrony Financial expects more than 10% loan receivables growth for 2022 due to underlying trends of payment rates and high purchase volume strength. It expects a net interest margin of around 15.50%. Net charge-offs are expected to remain around 3.5%. It witnessed strong credit performance in the first half. SYF expects operating expenses of $1,050 million per quarter for the year.Zacks Rank & Key PicksSynchrony Financial currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Primis Financial Corp. FRST, SmartFinancial, Inc. SMBK and Paramount Group, Inc. PGRE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Headquartered in McLean, VA, Primis Financial provides different types of financial services to SMEs in the United States. The Zacks Consensus Estimate for FRST’s 2022 top line indicates a 2% increase from the prior-year reported number.Based in Knoxville, TN, SmartFinancial is a leading financial services provider for individuals and corporate clients. The Zacks Consensus Estimate for SMBK’s 2022 revenues indicates 17.5% year-over-year growth.New York-based Paramount Group works as a fully-integrated real estate investment trust. The Zacks Consensus Estimate for PGRE’s 2022 top line indicates 6% year-over-year growth. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synchrony Financial (SYF): Free Stock Analysis Report Paramount Group, Inc. (PGRE): Free Stock Analysis Report SmartFinancial, Inc. (SMBK): Free Stock Analysis Report Primis Financial Corp. (FRST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research