Synovus Q4 earnings in line with expectations as higher interest rates continue to drive NII
Financial Synovus (NYSE:SNV) on Wednesday announced Q4 results largely in line with expectations, as higher interest rates continue to drive net interest income growth.
The financial services company reported Q4 adj. EPS was $1.35, unchanged year-on-year, while revenue increased 18.5% to $603.79 million.
Net interest income increased 27.8% to $501.3 million, while net profit margin increased 11 basis points continuously to 3.60%.
2022 pre-provision net revenue at $1.05 billion, up 19% on higher net interest income driven by strong loan growth and overall asset-sensitive position due to rising interest rates. Net sales before provisions in the fourth quarter increased 38% to $294.8 million.
Provision for credit losses in 2022 is $84.6 million compared with a reversal of credit losses of $106.3 million a year ago.
“The 2022 results reflect a deterioration in the economic outlook for 2023 and 2024 and strong loan growth, while the previous year’s results benefited from an improvement in the outlook as the impact of the pandemic epidemic began to ease,” Synovus (SNV) said in a statement.
Total loans in Q4 rose 11.2% to $43.72 billion, while total deposits fell 1.1% to $48.87 billion.
Shares of Synovus (SNV) 0.7% lower after the bell.
Before that, Synovus (SNV) Q3 business results ranked first in terms of loan growth and expand the range.