Regions Financial (RF) is expected to report Q2 earnings before the market open on Tuesday, July 21 with a conference call scheduled for 11:00 am.
Analysts are looking for EPS of (23c) on revenue of $1.59B. The consensus range for EPS is (46c) to (4c) while the consensus range for revenue is $1.49B to $1.84B, according to First Call.
In May, Regions Financial raised $1.85B in new capital by issuing 400M additional shares. Last month, Fitch Ratings downgraded Regions' long-term debt rating to A- from A. Fitch thinks that the capital raise provides "considerable support" to Regions' balance sheet. However, the ratings agency contends that the company faces elevated risk due to its exposure to "problematic markets," such as real estate in Florida.
Meanwhile, S&P last month lowered the ratings of Regions and 21 other banks as the ratings agency predicts that operating conditions for the banking industry will become less favorable than in the past. Specifically, S&P expects banks to be burdened by greater volatility in financial markets during credit cycles and tighter regulatory supervision.
Morgan Keegan was recently given a Wells notice involving certain mutual funds that the division formerly managed. The staff of the SEC will recommend that the agency take action against Morgan Keegan for allegedly violating U.S. securities law. Regions said the company would defend itself against the charges.