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Regions Financial (RF -0.67%)
Q3 2024 Earnings Call
Oct 18, 2024, 10:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Welcome to Regions Financial Corporation’s quarterly earnings call. Let’s start with Dana Nolan.
Dana W. Nolan — Head of Investor Relations
Thank you, Christine. This quarter, we reported earnings of $446 million, or $0.49 per share, with both net interest income and fees increasing. Deposit trends have stabilized, with corporate and consumer customers remaining healthy overall.
John M. Turner — CEO
Good morning! Our Q3 results show strong gains due to strategic execution. While corporate customers are cautious, we anticipate growth as economic conditions improve. We also support hurricane recovery efforts in impacted communities.
David J. Turner — CFO
Loan demand remains stable but soft, especially in real estate. We’re managing expenses carefully and expect revenue growth in 2024. Fee revenue has increased by 9%, driven by service charges and capital markets, while adjusted noninterest expense rose 4% due to higher salaries.
Net charge-offs increased slightly, but credit performance stabilizes. Our capital is strong, and we’re committed to investing in growth while managing costs.
Questions & Answers:
Operator
First question from Scott Siefers of Piper Sandler.
John M. Turner
We believe we can maintain our margin, projecting a good trajectory despite some fluctuations.
John Pancari — Analyst
What’s the outlook on loan demand and potential growth?
John M. Turner
The economy is stable, and while some segments see growth, others are soft. We expect improvement in 2025 as uncertainties clear.
Ebrahim Poonawala — Analyst
What’s the expectation for charge-offs moving forward?
John M. Turner
Charge-offs should remain in the 40-50 basis point range, reflecting historical performance.
Betsy Graseck — Analyst
How do you view future deposit growth?
David J. Turner
We’re optimistic about deposit growth due to market trends and will continue to balance deposits with loan growth for maximum net interest margin.
Call participants:
Dana W. Nolan, John M. Turner, David J. Turner and others.
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