Saturday, July 28, 2018

Quality Over Quantity Paying Off For Regions Financial

Regions Financial (RF) hasn’t been setting any records lately for revenue, pre-provision profit, or loan growth, but Regions’ focus on cleaning up its credit and improving its cost efficiency has still produced some solid benefits for shareholders. Among its peer group (and regional banks in general), Regions has been a good performer over the last few years, doubling over the last two years and meaningfully outperforming the likes of Synovus (SNV), BB&T (BBT), Wells Fargo (WFC), BancorpSouth (BXS), and First Horizon (FHN).

Competition is heating up in several markets important to Regions, but the bank still has room to benefit from further efficiency improvements while also starting to think a little more about lending growth again. Whole bank acquisition is likely off the table at current valuations, but mid-single-digit long-term earnings growth can still support a share price closer to $20.

Read more here:
Quality Over Quantity Paying Off For Regions Financial

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