Regions Financial Q1 Earnings Beat, Non-Interest Income & NII Rise Y/Y

Core Viewpoint - Regions Financial Corporation reported strong adjusted earnings per share of 54 cents for Q1 2025, surpassing the Zacks Consensus Estimate of 51 cents, and showing an increase from 44 cents in the same quarter last year [1][2] Financial Performance - Total quarterly revenues reached $1.78 billion, slightly missing the Zacks Consensus Estimate by 2.2%, but reflecting a 2.1% increase year over year [3] - Net interest income (NII) was$ 1.19 billion, up 0.8% year over year, although the net interest margin decreased by 3 basis points to 3.52% [3] - Non-interest income increased by 4.8% year over year to $590 million [3] - Non-interest expenses fell by 8.1% year over year to$ 1.04 billion, with adjusted non-interest expenses down 5.7% to $1.03 billion [4] Loan and Deposit Trends - Total loans decreased by 0.3% sequentially to$ 96.1 billion, while total deposits increased by 0.9% to $127.7 billion [5] Credit Quality - Non-performing assets as a percentage of loans decreased to 0.92% from 0.95% year over year, and non-performing loans as a percentage of net loans fell to 0.88% from 0.94% [6] - A provision for credit losses of$ 124 million was recorded, up 18.4% from the previous year [6][7] Capital Ratios - Common Equity Tier 1 ratio improved to 10.8% from 10.3% year over year, and the Tier 1 capital ratio increased to 12.2% from 11.6% [8] Share Repurchase Activity - The company repurchased 10.4 million shares for $242 million during the reported quarter [9] Future Outlook - The company's core business and revenue diversification strategies are expected to yield strong earnings in the future, supported by robust capital planning [11]