Eric (on behalf of Ebrahim Poonawala)'s questions to Synovus Financial Corp (SNV) leadership • Q1 2025
Question
Eric, on behalf of Ebrahim Poonawala, asked about the company's strategy for managing its interest rate sensitivity, given its neutral position on short-term rates and slight asset sensitivity to long-term rates.
Answer
CFO Andrew Gregory explained that the goal is to maintain neutrality to the front end of the curve so investors focus on the growth profile, not a rate play. He described how the bank uses hedges to manage this, aiming for a balanced asset and liability beta profile (mid-40s for both) to ensure long-term neutrality, even as the rate environment changes.