Jan 27 (Reuters) - Credit card issuer Synchrony

Financial ( SYF ) reported a lower fourth-quarter profit on

Tuesday, hit by a restructuring charge and higher expenses.

The Stamford, Connecticut-based bank's profit was $751

million, or $2.04 per share, in the three months ended ‌December

31, compared with $774 million, or $1.91 per share, a year

earlier.

Synchrony spent more on employee ​costs and technology

investments, driving other expenses to $1.40 billion in the

quarter, ‍a 10% jump from a year earlier. ⁠That included a $67

million ⁠restructuring charge tied to a voluntary employee

early-retirement program.

The results come at a turbulent ‌time as the sector grapples

with ​threats from U.S. President Donald Trump to cap credit card

interest rates at 10%, a move JPMorgan ⁠Chase chief Jamie Dimon

called "an economic ‍disaster."

Some big ​banks are already considering offering credit cards

with a 10% interest rate as a potential alternative to a broader

cap.

After ‍tightening lending standards in recent years, the bank

saw new account and purchase volume growth slow. It began easing

those standards last year and returned to purchase volume growth

in the third quarter.

The firm also won back retail giant Walmart's ( WMT ) credit

card ​mandate, ‍which is expected to be a strong tailwind to

growth.

"We achieved record fourth-quarter purchase volume,

reflecting stronger spend growth across ​four of our five

platforms and loan receivable growth in three of those

platforms," Chief Financial Officer Brian Wenzel said.

Purchase volume rose 3% to $49.5 billion in the fourth

quarter.

As the credit card issuer for retailers like Walmart ( WMT ), Sam's

Club, and Lowe's, Synchrony's results offer a window into the

financial ​health of the average American household, with

middle-class purchasing power stalling even as high-income

spending remains robust.

Synchrony expects 2026 profit per share to be between $9.10

and $9.50.