Synovus Financial Shares Jump On Strong Q3 Earnings: What You Need To Know

Synovus Financial Corp. (NYSE:SNV) shares are trading higher Thursday following strong third-quarter earnings results. Here’s what you need to know.

What To Know: Synovus, a financial services company, reported adjusted earnings per share of $1.23, beating the consensus estimate of $1.08. Revenue for the quarter was $564.72 million, surpassing the expected $559.198 million. The company’s top-line results were up 2.6% year-over-year.

Synovus Financial reported net margin of 8.40%. Net income available to common shareholders reached $169.6 million, a substantial improvement from the $87.4 million reported in the same period last year.

“Our third quarter earnings results demonstrate strong fundamental trends. We posted an adjusted return on average assets of 1.3% and adjusted return on tangible common equity of 17.1% while managing down our adjusted tangible efficiency ratio to 53%,” said Kevin Blair, chairman, president and CEO.

“As we move to a more favorable environment, I remain optimistic about our ability to accelerate growth given increased loan production and sustained strong core fee generation. Additionally, we have further de-risked our balance sheet this quarter, as evidenced by lower net charge-offs, a reduction in brokered deposits and a preliminary Common Equity Tier 1 ratio at its highest in nine years.”

See Also: Arrest Made In SEC X Account Hack Prior To Bitcoin ETF Approval, FBI Says Phone Used To ‘Manipulate Financial Markets’

The company’s net interest margin expanded slightly to 3.22% and period-end core deposits grew by $294.6 million sequentially to $45.1 billion. Non-interest revenue increased by 16% year-over-year to $124 million, driven by higher treasury, payment solutions and capital markets income.

SNV Price Action: Synovus shares were up by 5.64% at $51.09 at the time of writing, according to Benzinga Pro.

Photo by solarseven on Shutterstock.