Entering text into the input field will update the search result below

Regions Financial: Earnings Growth Through Provisions Reversal Appears Priced-In

Sheen Bay Research profile picture
Sheen Bay Research


  • Further reversals of provisioning for loan losses cannot be ruled out because allowances are quite high relative to loan losses.
  • Excess liquidity will likely continue to build in the year ahead. This will likely pressurize the net interest margin.
  • Deposit growth will likely drive earning assets growth, which will cancel out the impact of margin compression on net interest income.
  • The December 2021 target price is quite close to the current market price. Further, Regions Financial is offering a modest dividend yield.

Regions Financial Corporation Retail Consumer Location III
Photo by jetcityimage/iStock Editorial via Getty Images

Earnings of Regions Financial Corporation (NYSE: NYSE:RF) will likely receive a boost this year from the reversals of provisioning for loan losses. Meanwhile, net interest income will likely remain stable as the negative impact

This article was written by

Sheen Bay Research profile picture
Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.