Jan 28 (Reuters) - Synchrony Financial ( SYF ) said on

Tuesday it expects lower net revenue for 2025 as spending levels

moderate and interest rates dip, sending shares of the credit

card-focused consumer banking firm down about 5.5% in premarket

trading.

Interest rate cuts by the U.S. Federal Reserve are expected

to trim the margins of lenders providing credit card debt,

typically the costliest form of loans.

The Stamford, Connecticut-based company forecast 2025 net

revenue in the range of $15.2 billion to $15.7 billion. It

reported net revenue of about $16.13 billion for 2024.

However, its net interest income - the difference between

interest earned on loans and paid out on deposits - rose to

$4.59 billion in the fourth quarter, compared with $4.47 billion

a year earlier.

Provision for credit losses decreased to $1.56 billion from

$1.80 billion in the year-ago period, on lower risk of defaults.

The lender's purchase volume decreased by 3% in the quarter,

reflecting a dip in spending on the company's credit cards as

customers postponed discretionary purchases.

Purchase volume refers to the total dollar amount of

transactions via a company's cards after deducting discounts and

returns.

Synchrony's net income rose to $774 million, or $1.91 per

share, in the three months ended Dec. 31, compared with $440

million, or $1.03 per share, a year earlier.

The company's shares had risen more than 70.2% in 2024.