Synovus Financial beats Q1 estimates, shares edge higher

Published 16/04/2025, 22:24
Synovus Financial beats Q1 estimates, shares edge higher

COLUMBUS, Ga. - Synovus Financial Corp. (NYSE:SNV) reported first-quarter earnings that surpassed analyst expectations, driven by net interest margin expansion and lower credit loss provisions. The regional bank’s shares rose 1% following the announcement.

The Columbus (WA:CLC), Georgia-based financial services company posted adjusted earnings per share of $1.30 for the quarter ended March 31, 2025, beating the analyst consensus of $1.12. Revenue came in at $570.9 million, slightly above the estimated $569.42 million.

Net income available to common shareholders jumped 60% YoY to $183.7 million, or $1.30 per diluted share, compared to $114.8 million, or $0.78 per share, in the same quarter last year. The company attributed the strong performance to a 67% YoY growth in earnings per share, fueled by net interest margin expansion, lower provision for credit losses, and effective expense management.

Synovus reported a net interest margin of 3.35%, up 31 basis points from 3.04% in the first quarter of 2024. The provision for credit losses decreased significantly to $10.9 million, down 80% from $54.0 million in the year-ago quarter.

"We delivered 67% year-over-year earnings per share growth, fueled by net interest margin expansion, a lower provision for credit losses and excellent expense management," said Synovus Chairman, CEO and President Kevin Blair.

Total (EPA:TTEF) loans stood at $42.65 billion, down 2% YoY, while total deposits increased 1% YoY to $50.84 billion. The company’s Common Equity Tier 1 ratio was 10.75% at the end of the quarter.

Despite the strong results, Blair noted growing caution among borrowers and investors due to concerns about consumer spending sustainability and potential impacts from higher tariffs and federal government layoffs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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