Synovus touts improved returns, efficiency in 2Q results
Synovus Financial in Columbus, Ga., reported a double-digit increase in quarterly profit that reflected improved efficiency.
The $31 billion-asset company said in a press release Tuesday that its second-quarter earnings rose 27% from a year earlier to $57.9 million. Earnings per share of 60 cents topped the consensus among analysts’ estimates compiled by FactSet Research Systems by a penny.
“Profitability continued to improve as we delivered a 1% return on assets and an efficiency ratio below 60% for the quarter,” Kessel Stelling, Synovus’ chairman and CEO, said in the release.
Total revenue increased by 11% to $319.8 million.
Net interest income rose by 13.4% to $251.1 million. The net interest margin widened by 24 basis points to 3.51%.
Total loans increased by 6% to $24.4 billion. The company reported the biggest gains in consumer loans, which rose by 14.4% to $207.2 million. Commercial-and-industrial loans increased by 7.3%; commercial real estate loans fell by 1.2%.
Noninterest income increased by 3.4% to $68.7 million. Core banking fees rose by 1.3%. Fees tied to fiduciary and asset management services, brokerage and insurance increased by 5%. Mortgage banking income decreased by 2.6%.
Noninterest expenses increased by 1.7% to $191.7 million. The second quarter of 2016 included $5.8 million in restructuring charges.