In This Article:
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Quarterly Earnings: $465 million, resulting in earnings per share of $0.51.
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Adjusted Earnings: $487 million, with adjusted earnings per share of $0.54.
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Pre-Tax Pre-Provision Income: $745 million, a 21% increase year over year.
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Return on Tangible Common Equity: 18%.
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Average Loans: Relatively stable quarter over quarter; ending loans declined 1%.
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Average Consumer Loans: Decreased approximately 1% in the first quarter.
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Average Deposit Balances: Grew 1% linked quarter; ending balances increased 3%.
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Net Interest Income: Declined 3% linked quarter; projected to grow approximately 3% in the second quarter.
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Adjusted Non-Interest Income: Remained stable linked quarter.
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Adjusted Non-Interest Expense: Increased approximately 1% compared to the prior quarter.
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Provision Expense: Approximately equal to net charge-offs at $124 million.
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Allowance for Credit Losses Ratio: Increased 2 basis points to 1.81%.
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Common Equity Tier 1 Ratio: Estimated at 10.8%.
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Share Repurchases: $242 million executed during the quarter.
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Common Dividends: $226 million paid during the quarter.
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Regions Financial Corp (NYSE:RF) reported strong quarterly earnings of $465 million, with adjusted earnings of $487 million.
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The company achieved a 21% year-over-year increase in pre-tax pre-provision income, reaching $745 million.
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Regions Financial Corp (NYSE:RF) delivered a return on tangible common equity of 18%, the highest among peers for the last four years.
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The company has a robust capital position, with a common equity Tier 1 ratio of 10.8%, and strong organic capital generation.
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Regions Financial Corp (NYSE:RF) experienced growth in average deposit balances, which increased by 3% at the end of the quarter.
Negative Points
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Average loans declined by 1% at the end of the quarter, with a stable outlook for the full year 2025.
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Net interest income declined by 3% linked quarter, driven by lower loan balances and less origination fee activity.
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The capital markets business faced challenges, with lower M&A, real estate capital markets, and loan syndication activity.
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Provision expense was equal to net charge-offs at $124 million, with an increase in the allowance for credit losses ratio to 1.81%.
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The outlook for unemployment has increased, and there is an expectation for a pronounced slowdown in GDP growth, creating uncertainty for clients.
Q & A Highlights
Q: Can you provide insight into when customers might reengage with investments or strategic decisions, and how this might differ between commercial lending and capital markets? A: John Turner, CEO, noted that customer uncertainty due to market volatility and tariffs has led to a wait-and-see approach. Customers are optimistic but cautious, awaiting clarity on tariffs and regulatory changes. David Turner, CFO, added that lower interest rates could stimulate capital markets activity.