Regions Financial Q3 Profit Rises, but Falls Short of Expectations

  • Stock Market News
Regions Financial Q3 Profit Rises, but Falls Short of Expectations
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Regions Financial Corp (NYSE: RF ) reported a third-quarter profit of $490 million, or 49 cents per share on Friday, marking an increase from last year's $429 million. This rise in profit is in line with the InvestingPro data showing revenue growth of 10.01% for the company in the last twelve months. The company's net interest income rose to $1.29 billion, a significant contributor to its robust operating income of $3224M USD as per InvestingPro's real-time metrics.

Total revenue for the quarter slightly decreased to $1.86 billion from last year's $1.87 billion. Despite the slight dip, the company's market cap stands strong at 15.46B USD, according to InvestingPro data. The company also revised its provision for credit losses from the initially reported $154 million to $145 million early on Friday.

The sequential decline in both net and non-interest income was attributed to accelerating deposit and funding costs, activation of forward-starting interest rate hedges, and reductions in service charges and capital markets income. These factors were partially offset by the impact of higher market interest rates on asset yields. Even with these challenges, Regions Financial Corp has maintained a strong position, yielding a high return on invested capital, one of the key InvestingPro Tips for potential investors.

Moreover, the company has been consistent in rewarding its shareholders, having raised its dividend for 11 consecutive years, a fact that aligns with another InvestingPro Tip. The company's dividend yield stands at 5.83%, with a growth of 41.18% in the last twelve months.

The results fell below the 59 cents per share forecast by FactSet analysts. Yet, the company's P/E ratio stands at an attractive 7.61, making it a potentially undervalued investment opportunity as per InvestingPro's real-time metrics.

For more insights, potential investors can check out the InvestingPro Tips, which include 11 other tips for this company. These tips are part of the comprehensive InvestingPro product that offers real-time metrics and expert tips for numerous companies.

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