Regions Financial delivered a solid Q3 2024 in a subdued macro backdrop. Net income of $490 million on revenue of $2.33 billion translated to an EPS of $0.49, with NII rising 3% quarter-over-quarter and fee revenue up 9% QoQ, led by service charges, capital markets, and wealth management. The company continued to manage expenses prudently; adjusted noninterest expense rose 4% QoQ, contributing to a full-year 2024 expense guidance of roughly $4.25 billion. Regions’ balance sheet remained liquid and well-capitalized, with a CET1 ratio of 10.6% on a reported basis (9.1% when including AOCI) and cash/near-cash liquidity supported by a large, stable deposit franchise.
Management remained constructive on the revenue trajectory into 2025, aided by a combination of NII expansion from hedging and asset mix shifts, a more favorable fee environment as markets stabilize, and ongoing secular growth in treasury/cash management, wealth management, and capital markets. They reaffirmed a path to positive operating leverage in 2025 and emphasized investments in technology, talent, and products to support sustainable growth. The near-term focus remains on balancing deposit costs with loan growth, while continuing to monitor credit quality as macro conditions evolve. Regions also highlighted their strong capital flexibility to navigate evolving regulatory expectations and to support shareholder value via dividends and buybacks.