Synchrony Financial, the consumer finance business being split off from General Electric Co. , on Friday said profit grew 4.7% in its third quarter as purchase volumes increased.
The company earlier this week won approval from the Federal Reserve to split off from GE, clearing the business to operate as a publicly owned savings and loan holding company.
GE, which is dismantling much of its finance arm, said separately on Friday that it will begin a share exchange next week to fully complete the exit from the operation.
For the period ended Sept. 30, Synchrony reported a profit of $ 574 million, or 69 cents a share, compared with $ 548 million, or 70 cents a share, a year earlier.
Analysts polled by Thomson Reuters had forecast 66 cents in earnings.
Synchrony, a big provider of store credit cards, said its purchase volume grew 12% in the quarter.
Deposits grew 24% from a year earlier to $ 40.5 billion. Synchrony has built itself into the 36th-largest depository organization in the U.S., the Fed has said.
Net interest income grew 7.8% to $ 3.1 billion, above the $ 3.02 billion analysts had forecast, as growth in loan receivables was offset in part by higher interest expense.
Net interest margin, an important measure of lending profitability, declined by 1.14 percentage points to 15.97%, hurt by a significant increase in liquidity.
For its part, GE on Friday reported a stronger-than-expected profit in its third quarter, as higher aviation and transportation earnings helped boost its core industrials business.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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