Daily News: January 22, 2018

Regions Beats Estimate Despite Tax Act Charge


Regions Financial announced Q4/17 and full year 2017 earnings of $318 million and $1.193 million, respectively, up from $278 million and $1.094 million a year earlier. These marked increases of 14.4% and 9.0%, respectively. Earnings per share of $0.27 was higher than the expected EPS of $0.26 as forecasted by analysists polled by Thomson Reuters.

In connection with income tax reform, the company said it incurred a $29 million tax-related charge associated primarily with the revaluation of its net deferred income tax assets.

The adjusted net interest margin for full-year 2017 of 3.33% was up 19 basis points compared to full-year 2016.

“These results reflect a strong fourth quarter and end to 2017 as our teams made clear progress in executing Regions’ strategic plan to deliver greater value for our customers and shareholders,” said Grayson Hall, chairman and CEO. “As we look ahead to our 2018 priorities, we are conducting a fresh, comprehensive review of the company with the goal of consistently improving the experience customers have with Regions. We are identifying ways to streamline processes and organizational structure while expediting product and service enhancements that make it easier for people to bank with us.”

Hall added, “Earlier this month, we were also pleased to announce new investments in our associates, our products and services, and our communities as a result of the savings we expect from federal tax reform. These investments, including a more competitive minimum hourly wage and greater support for product innovation, economic development, revenue growth and more, are all key to helping Regions carry out its mission and create shared value for our customers, our associates, our communities and our shareholders.”