Regions Financial Q1 Earnings Beat, Non-Interest Income & NII Rise Y/Y (Revised)

Regions Financial Corporation’s RF first-quarter 2025 adjusted earnings per share of 54 cents beat the Zacks Consensus Estimate of 51 cents per share. This compares favorably with earnings of 44 cents per share in the year-ago quarter.A decrease in non-interest expenses, an increase in non-interest income and net interest income (NII) supported RF’s results. Also, Regions Financial’s strong capital position indicates its availability of adequate capital to use to deal with any unexpected losses. A decline in provision for credit losses was an added advantage. However, a lower loan balance played spoilsport.Net income (GAAP basis) available to common shareholders was $465 million, up 35.6% year over year.Regions Financial’s Revenues Rise, Expenses Dip Y/YTotal quarterly revenues were $1.78 billion, which missed the Zacks Consensus Estimate by 2.2%. The top line rose 2.1% from the year-ago quarter.Quarterly NII was $1.19 billion, up 0.8% year over year. However, the net interest margin declined 3 basis points to 3.52%.Non-interest income increased 4.8% year over year to $590 million.Non-interest expenses fell 8.1% year over year to $1.04 billion. Adjusted non-interest expenses moved down 5.7% year over year to $1.03 billion.The efficiency ratio was 57.9% in the first quarter compared with 64.3% in the prior-year quarter. A rise in this ratio indicates lower profitability.RF’s Loans Decline, Deposit Balance Rises SequentiallyAs of March 31, 2025, total loans decreased 0.3% on a sequential basis to $96.1 billion. Total deposits were $127.7 billion, which increased 0.9% from the previous quarter.Regions Financial’s Credit Quality ImprovesNon-performing assets (excluding more than 90 past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.92% from the prior-year quarter’s 0.95%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.88%, down from 0.94% in the prior-year quarter.A provision for credit losses of $124 million was recorded in the quarter, down 18.4% from the year-ago quarter.Adjusted net charge-offs, as a percentage of average loans, were 0.52% compared with 0.50% in the prior-year period.RF’s Capital Ratios Improve Y/YAs of March 31, 2025, the Common Equity Tier 1 ratio and the Tier 1 capital ratio were 10.8% and 12.2%, respectively, compared with 10.3% and 11.6% in the year-earlier quarter.Regions Financial’s Share Repurchase UpdateIn the reported quarter, the company repurchased 10.4 million shares for $242 million.Our Viewpoint on RFRegions Financial’s attractive core business and revenue-diversification strategies will likely yield stellar earnings in the upcoming period. The company’s robust capital planning process is intended to ensure the efficient use of capital to support lending activities and business growth opportunities and offer suitable shareholder returns. However, declining loans are concerning.Regions Financial Corporation Price, Consensus and EPS Surprise Regions Financial Corporation price-consensus-eps-surprise-chart | Regions Financial Corporation QuoteCurrently, Regions Financial carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksCitizens Financial Group CFG reported first-quarter 2025 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 75 cents. The metric rose 18.4% from the year-ago quarter.  (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)CFG’s results benefited from a rise in non-interest income, along with reduced expenses. A strong capital position was another positive. However, lower net interest income and declining loan balances were major headwinds.Hancock Whitney Corp.’s HWC first-quarter 2025 earnings per share of $1.38 exceeded the Zacks Consensus Estimate and the year-ago figure of $1.28. HWC’s results benefited from an increase in non-interest income and NII. Lower provisions were other positives. However, higher adjusted expenses and lower loan and deposit balances were headwinds.(We are reissuing this article to correct a mistake. The original article, issued on April 17, 2025, should no longer be relied upon.)Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regions Financial Corporation (RF): Free Stock Analysis Report Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks