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SNV NYSE· Synovus Financial Corporation
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SNV NYSE· Synovus Financial Corporation
Earnings report Q2 2023

SNV Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

SNV's non-interest revenue for the latest quarter was $112.3 million, a 15% increase from the same period in the previous year. The revenue from different segments was distributed as follows: $13.75 million from Wholesale Banking, $12.58 million from Community Banking, $20.98 million from Consumer Banking, $49.08 million from Financial Management Services, and $15.87 million from Treasury and Corporate Other.

Strengths

The strong growth in non-interest revenue was primarily driven by higher brokerage revenue. Additionally, a $7.0 million write-down on a minority fintech investment that impacted earnings on equity method investments in the previous year also contributed to the increase. The year-to-date increase also included a $13.1 million recovery of a non-performing asset related to Qualpay and higher capital markets income.

Challenges

Despite the strong performance in non-interest revenue, SNV experienced margin compression due to deposit pricing combined with remixing within its non-interest-bearing deposits.

Noteworthy

It's worth noting that the company has made adjustments to prior periods to account for loan and deposit transfers between reportable business segments. This is primarily to maintain the migration of clients and relationship managers between segments.

Summary

Overall, SNV has shown strong revenue growth in the latest quarter, primarily driven by higher brokerage revenue and recovery of a non-performing asset. However, the company faced challenges in the form of margin compression due to deposit pricing. The company's proactive management of client and relationship manager migration between segments is also noteworthy.

Source documents

Form 10-Q  filed on Aug 04, 2023
90 pages scanned

Reference data

Company financials Q2 revenue 484M
Analyst estimates Q2 EPS missed by -100.00%
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