Pls fil up the template and add the excel data in the excel file.. pls fill up the red questions answers I have completed some part in my template?W

Synchrony Bank

Rating: Buy Analyst:

4-18-2022 Current Stock Price $37.70

Price/Earnings (ttm) 5.14 Target Price Fiscal Year-End $50.89

Price/Book 1.44

Dividend Yield 2.33% EPS (ttm) $7.34

Market Capitalization 18.55 $B My Estimated 2022 EPS $5.62

Company Overview: Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

Recent Significant News:

Fifth Third Bancorp grew its position in shares of Synchrony Financial (NYSE:SYF – Get Rating) by 5.3% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 43,676 shares of the financial services provider’s stock after acquiring an additional 2,197 shares during the quarter. Fifth Third Bancorp’s holdings in Synchrony Financial were worth $2,026,000 at the end of the most recent reporting period.

Asset and Loan Distribution Analysis:

In comparison to Discover Bank, Synchrony Bank has a higher percentage of interest-bearing balances, interest bearing deposits,

Include a table directly above of major asset categories and major loan types compared with the peer group, using FDIC SDI, % of Assets, don’t paste a screenshot! Provide brief discussion. The peer group you should use is “All Institutions Assets $10 Bil – $250 Bil”.

Data sources for report: (limit yourself to these sources)

Company web page

Company 10-K reports at https://www.sec.gov/edgar/searchedgar/companysearch.html

FDIC SDI at https://www7.fdic.gov/sdi/main.asp?formname=compare

Yahoo Finance https://finance.yahoo.com

Finra https://finra-markets.morningstar.com/MarketData/EquityOptions/default.jsp

Capital Analysis: Include a table directly above, using FDIC SDI compared with the peer group, do not paste a screenshot! Provide brief discussion.

Asset Quality Analysis: Include a table directly above, using FDIC SDI compared with the peer group, don’t paste a screenshot! Provide brief discussion.

Liquidity Analysis: Include a table directly above, using FDIC SDI compared with the peer group, don’t paste a screenshot! Provide brief discussion.

Earnings/ROE Analysis: Include a table directly above, using FDIC SDI ‘Performance and Condition Ratios’ data, illustrating net interest margin, non-interest income/assets, non-interest expense/assets, credit loss provision/assets, and ROE over the past 4 years, 2018, 2019, 2020, and 2021 in that order, for your bank. Provide brief discussion.

Interest Rate Risk Analysis: Include long-term assets (5+ years) comparison versus peer group using FDIC SDI, and include a brief simulation/scenario analysis summary from the 10-K, not a screenshot. Given what you know about the composition of the bank’s assets and liabilities, does the simulation appear reasonable?

Key Assumptions of Discounted Cash Flow Analysis: (with your brief reasoning for each)

Total Assets Growth Rate: -3.8%

Interest Income/Avg TA: 14.74%

Interest Expense/Avg TL: 1.25%

Provision for Loan Loss/Avg TA:

Non-Interest Income/Avg TA:

Non-Interest Expense/Avg TA:

Income Tax Rate:

Common Equity/Total Assets:

Estimate of Future Beta:

It is important that all the data entered/forecasted in the spreadsheet is from/based on the 10-K, which is for the bank holding company. When you own the stock, you own (part of) the holding company. The FDIC SDI data is for the bank subsidiary only.

On this page, provide a printout of your DCF valuation model, printing cells A1:L33 on a single page, landscape (sideways) orientation. Make it as big as possible while still fitting on the page.

Recommendation: Here is where you discuss your DCF model and make your recommendation (buy, sell, hold), based on your analysis in the report. What are the key investment risks for this stock (why might your price target not be achieved, apart from general fluctuations in the stock market)?

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