Regions Financial Reports Increase in Profit

Regions Financial, based in Birmingham, Alabama, saw a rise in profit during the third quarter. The bank holding company reported a profit of $490 million, or 49 cents a share, compared to $429 million, or 43 cents a share, in the same quarter last year.

Net Interest Income and Revenue

Net interest income for the quarter reached $1.29 billion, up from $1.26 billion in the year-ago quarter. However, it fell short of the market consensus of $1.32 billion. Total quarterly revenue was $1.86 billion, slightly lower than last year's $1.87 billion.

Provision for Credit Losses

The provision for credit losses for the quarter was $154 million, higher compared to $118 million in the previous quarter and $135 million in the same quarter last year.

Factors Affecting Net Interest Income and Non-Interest Income

Net interest income declined due to increased deposit and funding costs, as well as the activation of forward-starting interest rate hedges. However, higher market interest rates partially offset these factors by improving asset yields.

Non-interest income also decreased, primarily due to decreases in service charges and capital markets income.