NYSE$RF

Regions Financial Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a net loss due to a significant increase in the allowance for credit losses, but delivered solid revenue and pre-tax pre-provision income growth over the prior year.

Regions Financial Corporation reported a net loss available to common shareholders of $237 million for the second quarter of 2020, or $0.25 loss per share, which includes a credit loss provision in excess of net charge-offs of $700 million. Total revenue and pre-tax pre-provision income each increased 8 percent over the prior year. Adjusted revenue grew 6 percent while adjusted pre-tax pre-provision income increased 8 percent.

  • Net loss reflects a significant credit loss provision for potential future losses.
  • Core business is solid and resilient despite the economic conditions.
  • Proactive risk management and strategic investments are prioritized to improve service and efficiency.
  • Focus on customers and careful expense management to deliver sustainable, long-term performance.

Headline financials

Total Revenue

$1.55B

Previous: $1.44B+7.6%
EPS (adj)

-$0.25

Previous: $0.39-164.1%
Efficiency Ratio

59.4%

No prior period
Net Charge-offs / Avg Loans

0.8%

No prior period
Tier 1 Capital Ratio

10.4%

No prior period
Free Cash Flow

-$214M

Previous: $390M-154.9%
Net Income

-$214M

Previous: $390M-154.9%
Operating Income

$496M

Previous: $1.12B-55.8%
Gross Profit

$663M

Previous: $1.44B-53.8%
Cash & Equivalents

$13.2B

Previous: $4.49B+194.1%
Total Assets

$144B

Previous: $128B+13.0%

Revenue & EPS history

Regions · Revenue · Quarterly

$1.55B

Q2 2020+7.6%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Regions · $540M total across 9 segments · Q2 2020

  • Deposit Charges
    $131M
  • Card & ATM Fees
    $101M
  • Capital Markets
    $95M
  • Mortgage Income
    $82M
  • Wealth Management
    $79M
  • BOLI Income
    $18M
  • Commercial Credit Fees
    $17M
  • Employee Benefit Assets
    $16M
  • Securities Gains/Losses
    $1M

Forward guidance

Regions' Board of Directors will evaluate the common stock dividend at its regularly scheduled meeting in July 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.4%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+4.7%

Avg return

30 days after

57%

41 / 72 earnings

Positive

+9.2%

Q1 2012

Best reaction

-13.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-2.7%+1.0%-4.5%
Q1 2026-2.2%+1.0%-4.5%
Q3 2025+0.9%+3.3%+6.9%
Q2 2025+0.8%-0.5%+5.1%
Q1 2025+0.7%+3.2%+17.8%
Q3 2024-1.5%-1.4%+9.9%
Q2 2024+1.4%+0.1%-2.7%
Q1 2024+0.9%+4.1%+6.2%
Q4 2023+6.2%+7.2%+3.0%
Q3 2023-13.9%-14.7%-0.4%
Q2 2023-1.7%-0.6%-4.0%
Q1 2023-3.1%-6.2%-10.7%
Q4 2022+5.9%+5.6%+10.0%
Q3 2022+4.1%+7.9%+13.9%
Q2 2022+4.5%+3.9%+10.9%
Q1 2022+0.3%-1.3%-6.5%
Q4 2021-6.6%-1.8%+0.2%
Q3 2021+4.0%+0.4%+1.8%
Q2 2021+2.0%+2.4%+5.6%
Q1 2021+4.0%+5.5%+12.2%
Q4 2020-0.4%-3.6%+14.5%
Q3 2020+3.6%+11.7%+25.3%
Q2 2020-5.3%+0.0%+9.0%
Q1 2020+6.2%+2.7%+3.8%
Q4 2019-2.4%-2.6%-0.7%
Q3 2019+1.3%+2.1%+2.6%
Q2 2019+2.2%+7.8%-4.7%
Q1 2019-3.3%-2.5%-8.6%
Q4 2018-0.1%-1.5%+2.5%
Q3 2018-5.7%-2.0%-3.5%
Q2 2018+3.7%+3.8%+10.6%
Q1 2018+3.9%+4.8%+5.4%
Q4 2017+5.6%+7.1%+7.2%
Q3 2017+3.0%+4.0%+2.9%
Q2 2017+0.6%+1.0%-1.7%
Q1 2017-4.5%-3.7%+0.1%
Q4 2016-0.5%+4.6%+10.0%
Q3 2016+5.3%+6.3%+31.6%
Q2 2016-2.6%-1.4%+5.1%
Q1 2016+3.3%
Q4 2015-3.3%
Q3 2015+1.0%
Q2 2015+4.9%
Q1 2015+1.5%
Q4 2014-4.0%
Q3 2014+1.1%
Q2 2014-0.9%
Q1 2014+1.3%
Q4 2013+4.3%
Q3 2013-4.5%
Q2 2013-1.9%
Q1 2013+6.3%
Q4 2012+3.1%
Q4 2011+2.1%
Q3 2012-8.8%
Q2 2012+8.1%
Q1 2012+9.2%
Q3 2011+3.6%
Q2 2011-11.6%
Q1 2011+0.8%
Q4 2010-1.4%
Q3 2010+6.9%
Q2 2010-1.5%
Q1 2009-4.3%
Q1 2010+2.0%
Q4 2007-0.6%
Q4 2009-0.6%
Q4 2008-0.6%
Q3 2009-0.6%
Q3 2008-0.6%
Q2 2009+0.4%
Q2 2008+0.4%

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