Regions Financial Tops Q2 Revenue Estimate, EPS In-Line, Posts Substantial Credit Losses
Portfolio Pulse from Lekha Gupta
Regions Financial Corp (NYSE:RF) reported Q2 FY23 revenue of $1.957 billion, a 12% Y/Y increase, beating the consensus of $1.95 billion. Net interest income rose 24.6% Y/Y to $1.38 billion, while provision for credit losses was $118 million, up from $60 million in the year-ago period. The company's EPS was $0.59, in line with consensus. Total deposits fell 10.1% Y/Y to $125.5 billion, while total loans rose 8.6% Y/Y to $98.6 billion. The company also raised its cash dividend by 20% to $0.24.
July 21, 2023 | 12:09 pm
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POSITIVE IMPACT
Regions Financial's Q2 FY23 results showed strong revenue and net interest income growth, but also a significant increase in credit losses. The company's EPS met expectations. The dividend increase could attract income-focused investors.
Regions Financial's strong revenue and net interest income growth indicate a positive financial performance. However, the significant increase in credit losses could be a concern for investors. The EPS meeting expectations is a neutral factor. The dividend increase could make the stock more attractive to income-focused investors, potentially driving the stock price up.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100