Regions Financial Corp. (RF) Tuesday reported an increase in third-quarter profit, reflecting lower expenses, despite marginal fall in revenues. Earnings per share topped analysts' expectations, while revenues matched view.
For the third quarter, the Birmingham, Alabama-based parent of Regions Bank posted net income available to common shareholders of $305 million or $0.22 per share, higher than $285 million or $0.21 per share in the prior year.
On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter slightly decreased to $1.30 billion from $1.32 billion a year ago. Wall Street analysts' revenue consensus was $1.30 billion for the quarter.
Net interest income edged down to $821 million from $824 million reported last year. Non-interest income was $478 million, lower than $495 million in the same period in 2013.
Net interest income, on a fully taxable equivalent basis, amounted to $837 million, and the resulting net interest margin was 3.18 percent, compared to 3.24 percent in the preceding year.
Non-interest expense declined to $826 million from $884 million in the prior year.
Provision for loan losses increased to $24 million from $18 million a year earlier.
Grayson Hall, chairman, president and CEO stated, "Our results demonstrate that, even in a challenging environment, we are growing the franchise through a disciplined focus on banking fundamentals. At the same time, we believe the recent positive credit rating agencies' actions reflect our improved risk profile, indicating further signs of our progress."
Tier 1 capital ratio was estimated at 12.7 percent, up from 11.5 percent in the previous year.
RF closed Monday's trading at $9.16.
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