Here’s how Aflac, Global Payments and Synovus performed in their third quarter of 2021
Aflac, Global Payments and Synovus announced their Q3 2021 earnings in the past few weeks. How did the publicly traded, Columbus-affiliated corporations fare?
COVID-19 continues to affect operations. Much of Aflac’s workforce remains remote. Global Payments reported record-breaking financial performances.
Here’s what you need to know about their finances for the three-month period ending Sept. 30:
Aflac
Aflac, a Fortune 500 company and insurer headquartered in Columbus, reported a Q3 profit of $888 million ($1.32 per diluted share), down from net earnings of $2.5 billion, or $3.44 per diluted share a year ago.
Earnings from Q3 2020 show a $1.4 billion benefit from “the release of valuation allowances on deferred tax benefits due to changes in U.S. tax regulations,” according to the company.
Other key points include:
- Q3 total revenues were down. Aflac reported Q3 total revenues of just under $5.24 billion, down from just under $5.67 billion over the same period in 2020.
- Total cash and investments at the end of September 2021 were $146 billion, roughly the same as in 2020.
The board of directors declared the fourth-quarter dividend of $0.33 per share, payable on December 1, 2021 to shareholders of record at the close of business on Nov. 17, 2021.
“The company generated strong earnings for the first nine months, largely supported by the continuation of low benefit ratios associated with pandemic conditions and better-than-expected returns from alternative investments,” Aflac Chairman and CEO Dan Amos said in a statement. “With respect to third-quarter sales results, we continued to see improvement in the United States, whereas in Japan pandemic conditions were more challenging.”
COVID-19 continues to affect Aflac’s operations in Japan and the United States.
According to its quarterly filing with the Securities and Exchange Commission, approximately 57% of Aflac Japan’s employees worked remotely. In the United States, more than 80% of Aflac employees were working remotely as of the end of September.
“The Company’s return to worksite for U.S. based employees is expected to be a phased approach that begins in the first quarter of 2022, subject to factors including vaccination rates, the return schedule of school systems and the availability of child care, the number of COVID–19 cases and the COVID–19 replication rate, the emergence of new variants and hospital capacity in areas of the U.S. where the Company has significant operations,” the company said.
Global Payments
Global Payments, a Fortune 500 company and financial technology corporation with dual headquarters in Atlanta and Columbus, reported a record-breaking Q3.
Adjusted net revenues increased to $2 billion, up from $1.75 billion in Q3 2020. This is the company’s first time surpassing the $2 billion mark for adjusted net revenue. Adjusted earnings per share increased 28% to $2.18, up from $1.71 in Q3 2020, marking an all-time high for adjusted earnings per share.
Other key points include:
- Profit for Q3 was just under $305.5 million, up from $230.2 million over the same period in 2020.
- Total revenues for Q3 were around $2.2 billion, up from just over $1.9 billion in Q3 2020.
- Global Payments closed its acquisition of MineralTree, an accounts payable automation and business-to-business (B2B) payments solutions firm in October. Global Payments acquired MineralTree for $500 million in cash.
“We are pleased to have delivered the strongest performance in our history in the third quarter despite facing incremental challenges from COVID-19 during the period,” CEO Jeff Sloan said in a news release. “Our businesses continued to demonstrate their resilience, and our results highlight our consistent execution across cycles. As we have throughout the pandemic, we benefit from accelerated digitization across our markets.”
Synovus
Synovus, the Columbus-based banking and financial services firm, reported a Q3 profit of $186.8 million, up from $91.6 million over the same period in 2020.
Other key points include:
Total loans were $38.3 billion, down from $39.5 over the same period last year.
Total deposits were $47.7 billion, up from $44.7 billion
Adjusted diluted earnings per share were $1.20, up from $0.89 in Q3 2020.
In late September, the Columbus Council approved a $50 million deal to purchase 250,000 square feet of office space from Synovus. The city purchased the space for $25 million, and another $25 million is set aside for renovations. The sale is expected to close no later than March 1, 2022.
Synovus plans to consolidate its nine downtown locations into two possible locations and one downtown branch that will include a drive-through by the first half of 2024. A new Synovus office facility in downtown is expected to be completed in May 2024, company officials previously told the Ledger-Enquirer.
“Our third quarter story was shaped by an intense focus on growth, and we are pleased with the results,” Kevin Blair, Synovus’ president and CEO, said in a statement.
This story was originally published November 18, 2021 at 6:00 AM.