Regions Financial Corp. (RF), Alabama’s largest bank, said second-quarter profit fell 8.8 percent as expenses increased.
Earnings available to common shareholders fell to $259 million, or 18 cents a share, from $284 million, or 20 cents, a year earlier, the Birmingham, Alabama-based lender said today in a statement. Twenty-seven analysts surveyed by Bloomberg estimated per-share earnings of 21 cents.
While some regional lenders are bracing for a decline in mortgage revenue amid rising interest rates, Regions Chief Financial Officer David Turner said last month that the business would continue to be “strong” for the bank. Regions is also “relentlessly” focusing on expenses, he said. Non-interest expenses rose 5 percent to $884 million in the second quarter.
“By continuing to execute on our business priorities, our company is well-positioned to capitalize on opportunities as the economy continues to improve,” Chief Executive Officer Grayson Hall, 56, said in the statement.
Regions has gained 46 percent this year, the third-best performer in the 24-company KBW Bank Index, which has increased 30 percent.