NEW YORK - Regions Financial Corporation (NYSE:RF) reported mixed third quarter results on Friday, with earnings missing estimates but revenue showing solid growth. The bank's shares rose over 2% in early trading as investors focused on the positive revenue trends.
Regions reported earnings per share of $0.49 for the third quarter, falling short of analyst expectations of $0.53. However, revenue came in at $1.79 billion, just shy of the $1.8 billion consensus estimate but representing a 3.4% increase from the previous quarter.
The bank's net interest income grew 2.7% quarter-over-quarter to $1.22 billion, while the net interest margin expanded by 3 basis points to 3.54%. Non-interest income rose 5% to $572 million on a reported basis and 9.2% to $650 million on an adjusted basis.
"During the third quarter, Regions continued its focus on delivering consistent, sustainable, long-term performance as evidenced by our solid quarterly revenue growth, including another record within wealth management, and margin expansion despite a challenging lending and interest rate environment," said John Turner, Chairman, President and CEO of Regions Financial Corp.
Total deposits remained relatively stable at $126.4 billion, down just 0.2% from the previous quarter. The bank's capital position strengthened, with the Common Equity Tier 1 ratio rising to 10.6% from 10.4% in Q2.
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