By Dean Seal
Regions Financial’s profit increased in the third quarter as deposits held steady and net interest revenue ticked up.
The Birmingham, Ala.-based bank holding company posted a profit of $490 million, or 49 cents a share, compared with $429 million, or 43 cents a share, in the same quarter a year ago. Analysts polled by FactSet had been expecting 59 cents a share.
Net interest income was $1.29 billion, up from $1.26 billion in the year-ago quarter, but below the $1.32 billion market consensus of analysts surveyed by FactSet.
Total quarterly revenue was $1.86 billion, slightly down from $1.87 billion last year and under analyst forecasts for $1.89 billion, according to FactSet.
Provision for credit losses for the quarter were $145 million, compared with $118 million last quarter and $135 million in the year-ago quarter.
Net interest income fell sequentially due to accelerating deposit and funding costs, along with the activation of the company’s forward-starting interest rate hedges, all of which were partially offset by the impact of higher market interest rates on asset yields.
Non-interest income did the same due to decreases in service charges and capital markets income.
Write to Dean Seal at [email protected]
Corrections & Amplifications
This article was corrected at 07:10 a.m. ET to clarify that Region Financial’s provision for credit losses in the third quarter was $145 million. An earlier article incorrectly said the provision was $154 million.
Region Financial’s provision for credit losses in the third quarter was $145 million. “Regions Financial 3Q Earnings Rise on Stable Revenue” at 6:21 a.m. ET incorrectly said the provision was $154 million.
Read the full article here