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Synchrony on track for biggest one-day decline ever

Diving divers down
Tony O'Brien | Reuters

Synchrony Financial shares took a 13 percent dive Tuesday after the company disclosed its expectation for higher charge-off rates.

"While the loss rate in our portfolio is at historically low levels, we very recently finished our loss forecast, and we are now expecting a 20-30 basis point increase in our net charge-off rates as we look out over the next 12 months," according to the consumer financial services firm's 8-K filing.

Synchrony also said it expects higher reserve builds.

The update put Synchrony's stock on track for it's biggest one-day price and percentage declines since it went public in 2014.

Synchrony shares have fallen 13 percent year to date.

SYF YTD

On Tuesday, the financials sector led the S&P 500 lower as its greatest decliner.