Regions Financial Q3 Profit Rises, Tops Estimates - Update

(RTTNews) - 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.