Regions Financial and Citizens Financial Report Higher Third-Quarter Profit

what happened

US regional banks Regions Financial and Citizens Financial both reported higher profit and revenue for the third quarter, according to a report published by ru.tradingview.com, originally written by WSJ reporter Connor Hart.

Regions posted a profit of $611 million, or 71 cents a share, up from $549 million, or 64 cents, a year earlier. Excluding one-time items, earnings reached 73 cents a share, against 66 cents expected by analysts polled by FactSet. Revenue rose 3% to $1.97 billion, slightly below Wall Street estimates of $1.99 billion. Net interest income grew 3.3% to $1.3 billion.

Citizens Financial earned $599 million, or $1.41 a share, compared with $1.05 a share a year earlier, versus expectations of $1.39. Revenue jumped 9.6% to $2.32 billion, just short of the $2.34 billion forecast. Net interest income climbed 13%, while noninterest income rose a more modest 2.7%.

why it matters

For markets, the results suggest the US regional banking sector is holding up well this quarter, as higher net interest income and fee gains support bank earnings. Rising salary and technology costs at Citizens, however, limit the bottom-line effect, so upcoming quarters will matter for judging the sector.

market impact

US banks, mainly regionals: results above forecasts support the sector.

tags

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