Synovus on track with cost cutting, revenue goal

Synovus Financial in Columbus, Ga., said it feels comfortable with its ability to achieve the $175 million in expense cuts and added revenue from its current efficiency effort. 

The $57 billion-asset company said in a press release Thursday that the Synovus Forward program reduced annual expenses by $55 million and added $55 million in revenue in 2021. 

The progress puts Synovus on pace to meet its overall goal by the end of this year. Synovus said the cost cuts included third-party spending discipline and the consolidation of branches and office space. 

Synovus announced in December that it would close about 40 branches, or roughly 15% of its network, in 2022. 

Noninterest expense decreased by 7% in 2021 from a year earlier, to $1.01 billion.

On the revenue side, the company received better pricing for its Treasury and payment solutions products, reduced deposit costs and improved the risk-adjusted returns in its balance sheet. 

Synovus plans to cut another $15 million to $20 million of expenses in 2022 through the continued rationalization of its third-party spending and more branch and corporate real estate reductions. 

The company said it will add $45 million to $50 million in revenue by delivering more advisory services and adding more customer products.