Upcoming AWS Coverage on Citizens Financial Group Post-Earnings Results
LONDON, UK / ACCESSWIRE / January 20, 2017 / Active Wall St. announces its post-earnings coverage on Synovus Financial Corp. (NYSE: SNV). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 17, 2017. The Columbus, Georgia-based company's adjusted diluted EPS grew 22.2% y-o-y, outperforming Wall Street's estimates. Register with us now for your free membership at:
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One of Synovus Financial's competitors within the Regional - Mid-Atlantic Banks space, Citizens Financial Group, Inc. (NYSE: CFG), announced on December 15, 2016, plans to release its Q4 and full-year 2016 results on Friday, January 20, 2017 by 7:00 am ET. AWS will be initiating a research report on Citizens Financial in the days following its upcoming earnings results.
Today, AWS is promoting its earnings coverage on SNV; touching on CFG. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=SNV
http://www.activewallst.com/registration-3/?symbol=CFG
Earnings Reviewed
During Q4 FY16, Synovus Financial's total revenue rose 8.2% to $301.7 million from $278.7 million in Q4 FY15. Quarterly revenues also beat the market consensus estimates of $300.4 million. The Company's net interest income grew 9.8% y-o-y to $233.53 million in Q4 FY16 from $212.62 million in Q4 FY15. Non-interest income also increased 11.8% y-o-y to $74.01 million in Q4 FY16 from $66.18 million in the year ago same quarter.
The holding Company for Synovus Bank reported net income available to common shareholders of $65.99 million, or $0.54 per diluted share, in Q4 FY16, versus $55.84 million, or $0.43 per diluted share, in Q4 FY15. Adjusted earnings rose to $0.54 per diluted share in Q4 FY16 from $0.44 per diluted share in Q4 FY15. Wall Street had expected the Company to report adjusted earnings of $0.53 per diluted share.
In full year FY16, Synovus Financial's net revenues increased 6.8% to $1.17 billion from $1.09 billion in FY15. The Company's net income also rose during FY16 to $236.55 million, or $1.89 per diluted share, from $215.84 million, or $1.62 per diluted share, in the previous year.
Earnings Metrics
During the reported quarter, the Company's return on average assets improved to 0.90% from 0.81% in the prior year's comparable quarter. The net income available to average common equity came in at 9.42% in Q4 FY16 which was 175 basis points above 7.67% reported in the year ago corresponding period. The Company's efficiency ratio was 63.98% in Q4 FY16, compared to 65.59% in Q4 FY15. Furthermore, the adjusted efficiency ratio for the reported came in at 60.32% versus 62.13% in Q4 FY15.
Net interest margin improved 11 basis points in Q4 FY16 to 3.29% from 3.18% in Q4 FY15. Yield on interest earning assets also improved during Q4 FY16 to 3.73%, from 3.63% in the year ago period. Moreover, the effective cost of funds was marginally down by a basis point to 0.44% in Q4 FY16 from 0.45% in the previous year's same quarter.
As on December 31, 2016, the Company's Common Equity Tier 1 ratio stood at 9.96%, compared to 10.37% as at end of last year's third quarter. During Q4 FY16, Tier 1 Capital ratio stood at 10.08% versus 10.37% in the prior year's comparable quarter. Furthermore, tangible common equity ratio was 9.09% at December 31, 2016, compared to 9.90% as on December 31, 2015.
Balance Sheet Analyzed
Synovus Financial's total average loans balance at the end of Q4 FY15 was $23.72 billion compared to $22.12 billion at the end of Q4 FY15. Total average deposits as on December 31, 2016 were $24.66 billion versus $23.24 billion recorded as on December 31, 2015.
The Company had total non-performing assets of $175.69 million, or 0.74% of total loans, as on December 31, 2016, compared to $215.40 million, or 0.96% of total loans, as on December 31, 2015.
Share Repurchase and Dividend
During Q4 FY16, the Company completed the $300 million common stock repurchase program announced in Q4 FY15, in which it bought back 9.9 million shares repurchased and reduced total share count by 7.6%. Additionally, Synovus Financial's Board of Directors authorized a new share repurchase program of up to $200 million of the Company's common stock to be executed during FY17.
The Company's Board announced a 25% increase in the quarterly common stock dividend from $0.12 to $0.15 per share, and the hiked dividend will be payable in April 2017.
Guidance
In its outlook for full year FY17, the Company stated that it expects net interest income to grow in the range of 8% to 10%, while adjusted non-interest income's growth is forecasted to be between 2% and 4%. Furthermore, the Company looks for an average loan growth of 5% to 7% in FY17 with average total deposits growth in the range of 5% to 7%.
Stock Performance
On Thursday, January 19, 2017, the stock closed the trading session at $41.01, marginally down 0.49% from its previous closing price of $41.21. A total volume of 685.92 thousand shares have exchanged hands. Synovus Financial's stock price advanced 27.42% in the last three months, 35.39% in the past six months, and 46.12% in the previous twelve months. The Company's shares are trading at a PE ratio of 22.99 and have a dividend yield of 1.17%.
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SOURCE: Active Wall Street