Regions Financial reported a solid QQ3 2024, underscored by a 3% linked-quarter increase in net interest income (NII) and a 9% rise in adjusted noninterest income, driven by service charges, capital markets activity, and wealth management. Revenue totaled $2.33 billion with net income of $490 million and earnings per share (EPS) of $0.49, aligning to modest year-over-year pressure on top-line metrics but delivering improved quarterly fee performance amid an uncertain macro backdrop. The bank maintained a disciplined approach to expense management, with adjusted noninterest expenses rising 4% quarter-over-quarter due to seasonal factors and one-time items, while continuing to invest in technology, talent, and products to support growth in 2025 and beyond.
Credit quality stabilized in the quarter as charge-offs rose modestly to the upper end of the guidance range (around 40-50 bps annualized), with the allowance for credit losses improving slightly to 1.79% and nonperforming loans at 0.85% of total loans. Regions strengthened liquidity and capital, ending the quarter with a reported CET1 ratio of 10.6% (AOCI-adjusted CET1 ~9.1%), aided by $101 million in share repurchases and $229 million in common dividends, and the transfer of $2.5 billion of available-for-sale securities to held-to-maturity to reduce AOCI volatility in transition to evolving regulatory standards. Management signaled continued NII growth into 2025, guided by a higher-yielding asset mix, deposit-cost relief as rates fall, and hedging dynamics that should bolster profitability in a lower-rate environment. The company reiterated full-year 2024 expectations for adjusted noninterest income of roughly $2.45–$2.50 billion and adjusted noninterest expenses around $4.25 billion, with positive operating leverage expected in 2025 as revenue growth initiatives scale and expense discipline remains in place.