Regions Financial Tops Q2 Revenue Estimate, EPS In-Line, Posts Substantial Credit Losses

Regions Financial Corp RF clocked revenue growth of 12% Y/Y in Q2 FY23 to $1.957 billion, beating the consensus of $1.95 billion.

Net interest income jumped 24.6% Y/Y to $1.38 billion, benefitting from higher market interest rates.

Provision for credit losses stood at $118 million, significantly higher than $60 million in the year-ago period.

The company reported EPS of $0.59, in line with the consensus.

Total deposits fell 10.1% Y/Y to $125.5 billion on a broad-based decline.

Total loans rose 8.6% Y/Y to $98.6 billion in the quarter. 

The common equity Tier 1 ratio at the Q2 end totaled 10.1%, higher than 9.2% a year ago. 

The company had total available liquidity of approximately $53 billion as of June 30, 2023.

"Our associates continue to execute our strategy and deliver excellent customer service, creating consistent, sustainable, long-term performance. This quarter, we were excited to announce the addition of Regions' Overdraft Grace feature, which complements the other enhancements we've introduced over the last two years and provides customers with more financial tools and flexibility," said John Turner, President and CEO of Regions Financial.

Dividend: On July 19, Regions Financial raised a cash dividend by 20% to $0.24 on the outstanding common stock, payable on October 2, 2023, to stockholders of record as on September 1, 2023.

Price Action: RF shares are trading higher by 0.25% at $20.40 premarket on the last check Friday.