Synovus Financial Corp (SNV) has reported a 17.38 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $68.55 million, or $0.54 a share in the quarter, compared with $58.40 million, or $0.43 a share for the same period last year.
Revenue during the quarter grew 10.05 percent to $301.28 million from $273.77 million in the previous year period. Net interest income for the quarter rose 9.83 percent over the prior year period to $233.53 million. Non-interest income for the quarter rose 11.83 percent over the last year period to $74.01 million.
Synovus Financial Corp has made provision of $6.26 million for loan losses during the quarter, up 24.66 percent from $5.02 million in the same period last year.
Net interest margin improved 11 basis points to 3.29 percent in the quarter from 3.18 percent in the last year period.
"We closed out 2016 with another quarter of improved profitability demonstrated by diluted earnings per share of $0.54, up 26 percent compared to the fourth quarter of 2015," said Kessel D. Stelling, Synovus chairman and chief executive officer. "We also achieved strong earnings per share growth for the full year and returned more than $300 million in capital to our shareholders. We are energized about the opportunities in 2017 and beyond as we focus on exceptional and efficient service delivery, understanding and meeting customer needs, further balance sheet diversification, disciplined expense management, and investing in our communities."
Liabilities outpace assets growth
Total assets stood at $30,104 million as on Dec. 31, 2016, up 4.55 percent compared with $28,792.65 million on Dec. 31, 2015. On the other hand, total liabilities stood at $27,176.08 million as on Dec. 31, 2016, up 5.36 percent from $25,792.46 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $23,604.63 million as on Dec. 31, 2016, up 6.44 percent compared with $22,177.07 million on Dec. 31, 2015. Deposits stood at $24,648.06 million as on Dec. 31, 2016, up 6.05 percent compared with $23,242.66 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $7,085.80 million or 28.75 percent of total deposits on Dec. 31, 2016, compared with $6,732.97 million or 28.97 percent of total deposits on Dec. 31, 2015.
Investments stood at $3,727.51 million as on Dec. 31, 2016, up 3.75 percent or $134.59 million from year-ago. Shareholders equity stood at $2,927.92 million as on Dec. 31, 2016, down 2.41 percent or $72.27 million from year-ago.
Return on average assets moved up 9 basis points to 0.90 percent in the quarter from 0.81 percent in the last year period. At the same time, return on average equity increased 175 basis points to 9.42 percent in the quarter from 7.67 percent in the last year period.
Nonperforming assets moved down 18.44 percent or $39.71 million to $175.69 million on Dec. 31, 2016 from $215.40 million on Dec. 31, 2015.
Capital ratios deteriorate
Synovus Financial Corp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 8.99 percent for the quarter, down from 9.43 percent for the previous year quarter. Equity to assets ratio was 9.31 percent for the quarter, down from 9.98 percent for the previous year quarter. Book value per share was $22.92 for the quarter, up 3.29 percent or $0.73 compared to $22.19 for the same period last year.
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