Regions Financial reported second quarter revenue of $1.91 billion and EPS of $0.64, missing revenue estimates by 2.2% while meeting EPS expectations. Net interest income came in ahead of analyst forecasts, supported by loan growth and well-controlled deposit costs.
Key Highlights
- Net Interest Income (NII) reached $1.28 billion, up 2.3% quarter-over-quarter, driven by a 2.4% increase in average loans and stable deposit costs.
- Credit quality metrics improved, with annualized net charge-offs declining to 0.42% from 0.54% in the prior quarter and the allowance for credit losses to non-performing loans increasing to 241%.
- The company increased its quarterly common stock dividend by 13% to $0.30 per share, supported by a stable Common Equity Tier 1 (CET1) ratio of 10.7%.