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Rise in Fee Income to Support Regions Financial in Q1 Earnings
RFRegions Financial(RF) ZACKS·2025-04-14 14:20

Core Viewpoint - Regions Financial Corporation is expected to report year-over-year growth in earnings and revenues for the first quarter of 2025, with earnings estimated at 51 cents per share and revenues at 1.82billion,reflectinga15.91.82 billion, reflecting a 15.9% and 4.4% increase respectively compared to the previous year [1][3]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for first-quarter earnings is 51 cents per share, indicating a 15.9% rise from the year-ago reported number [3]. - The consensus estimate for revenues is pegged at 1.82 billion, indicating a 4.4% increase from the prior-year reported figure [3]. - Regions Financial has a history of earnings surprises, surpassing estimates in three of the last four quarters with an average surprise of 4.15% [2]. Group 2: Non-Interest Income and Expenses - Non-interest income is expected to total 615.1million,indicatinga5.1615.1 million, indicating a 5.1% sequential rise, despite a projected decline in capital markets revenues to 85.3 million, down 12.1% sequentially [10][11]. - The company anticipates high expenses due to increased salaries and technology investments, which may keep the expense base elevated [11]. Group 3: Net Interest Income and Loan Demand - Net interest income (NII) is estimated at 1.29billion,reflectinga1.81.29 billion, reflecting a 1.8% decrease sequentially, as the Federal Reserve maintained interest rates [4]. - The demand for commercial and industrial loans has decreased, while consumer loans remained solid in the first quarter [5]. Group 4: Asset Quality and Provisions - Regions Financial is likely to have set aside a substantial amount for potential bad loans, with non-performing assets estimated at 959.2 million, indicating a 1.8% rise from the previous quarter [12]. Group 5: Market Conditions and M&A Activity - Global M&A activities showed modest growth, primarily in the Asia Pacific region, but overall market volatility and trade tensions have made companies cautious about pursuing M&A [7].