Synovus Strengthens Capital Position, Restructures Securities Portfolio

The latest update is out from Synovus (SNV).

Synovus has completed an asset optimization analysis, leading to an expected $2.0 to $2.4 billion reduction in risk-weighted assets and a boost in its core capital ratio by up to 50 basis points. This stronger capital position will allow Synovus to restructure its $11 billion securities portfolio, including the sale of $1.6 billion in securities, albeit with a $275 million pre-tax loss. This strategic move is projected to enhance the bank’s net interest income and margin, with the benefits offsetting the loss within five years, while maintaining a robust common equity tier 1 ratio at the upper end of its 10-10.5% target.

Learn more about SNV stock on TipRanks’ Stock Analysis page.