PrintRegions Financial profit jumps on interest income boost, lower bad loan provisions
BY Reuters | ECONOMIC | 07:36 AM EDTApril 17 (Reuters) - Regions Financial
The Fed lowered interest rates by 75 basis points in the second half of 2025, boosting loan growth and lending income across U.S. banks in the first quarter. Bankers have also said they expect loan pipelines to remain robust as easing tariff-linked uncertainty improves corporate credit appetite. Regions' quarterly net interest income, the difference between what a bank earns on ?loans and pays out on deposits, rose 4.5% from a year earlier to $1.25 billion. Provisions for credit losses fell to $91 million, compared with $124 million a year earlier. Overall asset quality is improving, the bank said, as it makes progress in resolving loans within previously identified portfolios.
"Growth in loans and deposits accelerated during the first quarter, credit metrics continued to improve and client sentiment remained generally optimistic across our footprint," said CEO John Turner.
Consumer fundamentals were sound, while labor market conditions showed no indications of material weakness, Regions added.
Strong performance in the underwriting and wealth management businesses also lifted Regions' profit during the quarter, with non-interest income rising 6% to $625 million.
Quarterly net income came in at $559 million, or 62 cents per share, compared with $490 million, or 51 cents per share, a year earlier.
Meanwhile, the bank said it has an exposure of about $12.8 billion to so-called non-depository financial institutions (NDFIs), a growing area of focus amid concerns that risk could be rising in the private-credit segment. Regions said structural protections were in place for its private-credit exposure, which accounts for 14% of its NDFI portfolio. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Jonathan Ananda)
