Synovus Financial falls after Q1 profit miss

Synovus Financial

18/04/2024 16:59

** Shares of regional lender Synovus Financial  SNV.N  fall
as much as 8.5%, last down 6.5% at $34.25
    ** Late on Wednesday, SNV reported Q1 adjusted profit of 79
cents/shr, missing analysts' average expectation of 99 cents/shr
- LSEG data
    ** Q1 net interest income (NII) falls 13% to $418.80 mln
compared with last year, hurt by higher deposit costs and
decline in average earnings assets
    ** Q1 provision for credit losses of $54 mln was higher than
estimates of $43.70 mln
    ** SNV now expects FY 2024 adjusted revenue growth to be at
the "low end" of the prior forecast of -3% to 1% range
    ** KBW analysts say higher-for-longer interest rates are
better for SNV's NII in 2024, but the outlook moving to the low
end of the range without rate cuts takes the momentum out of
that narrative
    ** SNV shares down 8.5% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))