Regions Financial stocks advance after earnings, earnings exceed expectations, but NII is shy

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Shares of Regions Financial Corp. RF,
-0.69%
rose 0.4% in pre-market trading on Friday, after the Alabama-based regional bank reported better than expected first-quarter earnings and income, while net interest income was subdued. Net income rose to $ 642 million, or 63 cents per share, from $ 162 million, or 14 cents per share, a year ago. The FactSet consensus for earnings per share was 48 cents. Total revenue rose 13.7% to $ 1.60 billion, beating the FactSet consensus of $ 1.55 billion. Net interest income rose 4.2% to $ 967 million, but beat expectations by $ 987.5 million, while non-interest income rose 32.2% to $ 641 million to exceed expectations of $ 565.7 million. The bank said net interest income had been negatively affected by falling loan balances and the remixing of indirect higher-yielding consumer categories. The bank declared $ 149 million in dividends during the quarter, but did not buy back any shares. “While we are all still grappling with the lingering effects of the pandemic, our ongoing conversations with customers reflect optimism for continued economic recovery and growth,” said Chief Executive Officer John Turner. The stock rose 25.9% year-to-date through Thursday, while the SPDR Financial Select Sector ETF XLF,
+ 0.10%
rose 17.8% and the S&P 500 SPX,
+ 0.41%
gained 10.1%.


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