TFC - Synovus Has Answered Its Skeptics But The Story Isn't Over

• Synovus had a pretty typical fourth quarter, with a mid-single-digit beat on the pre-provision profit line and a bigger beat on provisioning expense.
• Charge-offs are still very likely to increase from here before peaking in '21, but the base-case scenarios for credit quality have improved dramatically over the last six months.
• Synovus has largely answered bearish critics on the credit quality issue, and now the question is whether the company can generate above-average revenue growth with good margins.
• The outperformance of these shares has reduced the prospective return opportunity, but a high single-digit annualized prospective return still isn't bad.

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