Synovus Financial Corporation (SNV) has reported 36.79 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $71.86 million, or $0.56 a share in the quarter, compared with $52.53 million, or $0.39 a share for the same period last year.
Revenue during the quarter grew 11.45 percent to $303.09 million from $271.96 million in the previous year period. Net interest income for the quarter rose 9.96 percent over the prior year period to $239.93 million. Non-interest income for the quarter rose 13.76 percent over the last year period to $71.84 million.
Synovus Financial Corporation has made provision of $8.67 million for loan losses during the quarter, down 7.50 percent from $9.38 million in the same period last year.
Net interest margin improved 15 basis points to 3.42 percent in the quarter from 3.27 percent in the last year period.
"We are pleased with our strong first quarter performance, highlighted by an 8 percent year-over-year revenue increase driven by steady balance sheet growth and expanded net interest margin," said Kessel D. Stelling, Synovus chairman and chief executive officer. "We remain confident in our ability to deliver on our 2017 financial targets, and we are excited about the work underway to prepare for our 2018 transition to a single brand. Leveraging a common brand while maintaining our local, relationship-centered delivery model will further boost Synovus brand awareness and enhance our ability to promote our broader banking capabilities to prospects and existing customers."
Liabilities outpace assets growthTotal assets stood at $30,679.59 million as on Mar. 31, 2017, up 5.17 percent compared with $29,171.26 million on Mar. 31, 2016. On the other hand, total liabilities stood at $27,717.46 million as on Mar. 31, 2017, up 5.72 percent from $26,217.99 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $24,004.95 million as on Mar. 31, 2017, up 6.67 percent compared with $22,503.69 million on Mar. 31, 2016. Deposits stood at $25,105.71 million as on Mar. 31, 2017, up 7.06 percent compared with $23,449.93 million on Mar. 31, 2016. Noninterest-bearing deposit liabilities were $7,264.86 million or 28.94 percent of total deposits on Mar. 31, 2017, compared with $6,896.55 million or 29.41 percent of total deposits on Mar. 31, 2016.
Investments stood at $3,784.72 million as on Mar. 31, 2017, up 5.51 percent or $197.67 million from year-ago. Shareholders equity stood at $2,962.13 million as on Mar. 31, 2017, up 0.30 percent or $8.86 million from year-ago.
Return on average assets moved up 23 basis points to 0.96 percent in the quarter from 0.73 percent in the last year period. At the same time, return on average equity increased 289 basis points to 9.97 percent in the quarter from 7.08 percent in the last year period.
Nonperforming assets moved down 13.57 percent or $29.40 million to $187.23 million on Mar. 31, 2017 from $216.63 million on Mar. 31, 2016.
Capital ratios deteriorateSynovus Financial Corporation witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.13 percent for the quarter, down from 9.15 percent for the previous year quarter. Equity to assets ratio was 9.24 percent for the quarter, down from 9.69 percent for the previous year quarter. Book value per share was $23.19 for the quarter, up 3.20 percent or $0.72 compared to $22.47 for the same period last year.
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