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Regions Financial sees FY24 average deposits stable to down modestly vs. FY23

Regions Financial sees FY24 average deposits stable to down modestly vs. FY23

Sees FY24 average loans “stable to down modestly.” Expects: NII to grow in 2H24, with asset turnover at elevated rate levels being the primary driver; 3Q24 NII expected to be flat to up 2% vs 2Q24; 2024 NII expected to be $4.7B-$4.8B; Expect to operate toward the upper end of the range; 2024 NIM expected to be low 3.50%’s; Higher cash levels could reduce NIM modestly in the near-term with no NII impact; Assumes rising rate interest-bearing deposit beta peaks in the ~mid-40s (mostly stable from current levels); falling rate beta ~mid-30s. Expects full-year 2024 adjusted non-interest income to be at the upper end of the $2.3B-$2.4B range. Expect full-year 2024 adjusted NIE to be $4.15-$4.2B; attributable primarily to higher revenue; Expect full-year 2024 operational losses to be ~$100M. Comments taken from investor presentation slides.

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