Alabama-based bank Regions Financial Corp. (RF) has reported better-than-expected financial results for the second quarter of 2021. The company offers wealth management, commercial banking, retail banking, and mortgage products and services.
Earnings per share (EPS) totaled $0.77, compared to a loss of $0.25 in the second quarter of 2020. The EPS surpassed the Street’s estimate of $0.52. Total revenue increased 2.4% year-over-year to $1.58 billion, marginally surpassing analysts’ expectations of $1.55 billion.
Net interest income fell nearly 1% to $963 million; non-interest income grew 8% to $619 million; total deposits rose 18.2% to $131 million; and total loans declined 8.1% to $84.6 million. (See Regions stock chart on TipRanks)
The President and CEO of Regions Financial, John Turner, said, “We have taken several steps — adding talented bankers, investing in service and delivery channels, and enhancing our capabilities through our bolt-on acquisition strategy — to build on our momentum and create greater value for customers, communities, and shareholders over time.”
On July 6, KBW analyst David Konrad initiated coverage on the stock with a Sell rating and a price target of $18 (5.8% downside potential). The analyst said the Sell rating is based on “Regions’ challenges generating organic growth, its near-term reliance on derivative benefits and its outsized exposure to industry service charge/overdraft pressures.”
Overall, the stock has a Moderate Buy consensus based on 4 Buys, 4 Holds and 1 Sell. The average Regions Financial price target of $22.83 implies 19.5% upside potential. The company’s shares have gained 80% over the past year.
According to TipRanks’ Smart Score rating system, Regions Financial scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.
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