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Regions Financial Beats Expectations With Strong Q2
18 Jul
Summary
- Regions Financial exceeded Q2 earnings and revenue forecasts.
- Net interest income rose 2% quarter-over-quarter.
- Wealth management revenue hit a record $150 million.
Regions Financial Corporation reported stronger-than-expected second-quarter results on Friday, fueled by increased lending and a substantial rise in net interest income. The bank's adjusted earnings per share rose by 13% compared to the same period last year.
Net interest income climbed 2% over the previous quarter, reaching $1.28 billion. This growth was attributed to continued loan expansion and effective management of deposit costs. The bank's average loans increased by 2% to $98.7 billion, with broad-based growth in commercial and industrial lending across various sectors.
Notably, Regions Financial achieved a record $150 million in wealth management revenue, its fifth record in the last six quarters. Adjusted non-interest income also saw a 7% year-over-year increase. During the quarter, the company repurchased shares and increased its quarterly dividend by 13% to $0.30 per share.
Asset quality showed improvement, with annualised net charge-offs declining to 42 basis points. The bank maintained strong capital levels, with an estimated Common Equity Tier 1 ratio of 10.7%.
