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Jun 30, 2020

Regions Q2 2020 Earnings Report

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.

Key Takeaways

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.

Total Revenue
$1.54B
Previous year: $1.46B
+6.1%
EPS
-$0.25
Previous year: $0.39
-164.1%
Efficiency Ratio
59.4%
Net Charge-offs
0.8%
Tier 1 Capital Ratio
10.4%
Cash and Equivalents
$13.2B
Previous year: $4.49B
+194.1%
Total Assets
$144B
Previous year: $128B
+13.0%

Regions

Regions

Regions Revenue by Segment

Forward Guidance

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