How did COVID-19 affect Aflac, Global Payments and Synovus in Q2 2020? Take a look
Aflac, Global Payments and Synovus have all filed their financial earnings for the second quarter ending June 30, 2020.
All three companies have and will continue to feel the financial effects of the coronavirus pandemic, as stated in their quarterly reports.
Here’s what you need to know about these Columbus-affiliated companies and their earnings.
Aflac
Aflac Incorporated, a Fortune 500 company and insurer based in Columbus, reported a Q2 profit of $805 million, down slightly from net earnings of $817 million over the same period last year.
Some other key points include:
▪ Q2 2020 total revenues were down slightly. Aflac reported roughly $5.4 billion in 2020 as opposed to roughly $5.5 billion over the same period in 2019.
▪ Total investments and cash at the end of June 2020 were $142.2 billion, compared with $136.6 billion at that point last year.
▪ For the first half of 2020, Aflac reported $10.6 billion in total revenues, down from $11.2 billion in 2019.
▪ For the first half of 2020, Aflac reported $1.4 billion in net earnings, down from $1.7 billion in 2019
The company wrote in its report that COVID-19 continues to affect the company and its future effects “remain uncertain.”
During Q2 2020, Aflac Japan experienced a sales decline of 58.1% compared to the second quarter of 2019. The company cited the effects of the pandemic and the continued effects of the investigation into Japan Post’s improper sales practices as reasons for the drop.
Japan Post is majority-owned by the Japanese government and sells its own insurance policies, as well as policies from other insurers such as Aflac. Japan Post announced in July that it mismanaged 90,000 insurance policies, Insurance Business Magazine reports.
During Q2 2020, Aflac U.S. experienced a sales decline of 55.6% from Q2 2019 due to the pandemic. The company’s policy sales, enrollment and agent recruitment are dependent on face-to-face interactions, company officials said in the filing.
The company also said in the report it anticipates that a return to workplaces for U.S. based employees will be “conducted in phases beginning no sooner than early 2021, subject to factors including the availability of treatments and vaccines, the return schedule of school systems and the availability of child care, the number of COVID–19 cases and the COVID–19 replication rate in areas of the U.S. where the Company has significant operations.”
The company’s current remote working schedule could remain for an indefinite period “without materially impacting” Aflac’s operations, according to the report.
A copy of Aflac’s full filing to the Securities and Exchange Commission can be found by clicking here.
Global Payments
Global Payments, a financial technology services company with dual headquarters in Atlanta and Columbus, reported a Q2 2020 profit of roughly $39.4 million, down from a reported total net income of about $130 million over the same period in 2019.
“We delivered solid financial performance for the second quarter in a challenging environment and are encouraged by the recovery across our businesses, which has continued in July,” said Paul Todd, Senior Executive Vice President and Chief Financial Officer.
Some other key points include:
▪ Global Payments saw its total revenues increase in Q2 2020 to roughly $1.7 billion compared to roughly $935.2 million over the same period in 2019.
▪ Adjusted earnings per share declined 13% to $1.31, compared to $1.51 at the same time in 2019.
▪ For the first half of 2020, Global Payments reported $3.6 billion in total revenue, up from $1.8 billion in 2019.
▪ For the first half of 2020, Global Payments reported $190.1 million in total net income, down from a profit of $249.2 million.
“Starting in mid-March, the COVID-19 pandemic began to significantly affect our financial results as governments took actions to encourage social distancing and implement shelter-in-place directives,” the company wrote. “As certain state and local governments in the United States and abroad began to gradually ease restrictions, and certain businesses reopened at reduced capacities, we saw improvement in our financial results and positive trends throughout the latter half of the second quarter. We expect that the COVID-19 pandemic will continue to have an adverse effect on our revenues and earnings for the remainder of 2020, although the magnitude, duration and ultimate effects of the COVID-19 pandemic are not possible to predict at this time.”
Global Payments announced Monday a new, multi-year deal with Amazon Web Services. Global Payments will use Amazon Web Service as its cloud-provider for issuer processing, and the deal will help Global Payments widen its customer base, according to a company news release.
A copy of Global Payments’ full filing to the Securities and Exchange Commission can be found by clicking here.
Synovus
Synovus, the Columbus-based banking and financial services company, reported a Q2 profit of roughly $93.2 million, down from a reported total net income of roughly $156.2 million over the same period in 2019.
Some other key points include:
▪ Total loans for Q2 were roughly $39.9 billion, up from $36.1 billion over the same period in 2019.
▪ Total deposits for Q2 were roughly $44.2 billion, up from roughly $38 billion over the same period in 2019.
▪ Total revenues for Q2 were roughly $550.9 million, up from roughly $487.9 million over the same period in 2019.
▪ For the first half of 2020, Synovus reported a profit of $131.7 million, down from $276.4 million in reported total net income over the same period in 2019.
The company’s provision for credit losses — an estimation of possible losses that a company might experience due to credit risk — was listed at about $141.9 million for Q2 2020. That’s up from about $12.1 million reported at the same point in 2019. The increase “reflected significant economic stress due to the COVID-19 healthcare crisis,” the company reports.
A copy of Synovus’ report can be found here.
This story was originally published August 5, 2020 at 7:00 AM.