We think that Regions Financial’s commitment to improving its risk management and its renewed focus on profitable client relationships have served the bank well. The bank’s strong deposit franchise should continue to be a major driver of its superior return profile over peer regional banks in the future.
Regions Financial has one of the best deposit franchises in our coverage, and the bank’s hedging program reduces its net interest margin’s sensitivity to declining short-term interest rates. The bank’s net interest margin could continue to outperform peers in the short term.
The bank has not been growing its loan book as fast as some of its regional bank peers, despite a footprint in the US south with better growth prospects. This could drive proportionately slower balance sheet growth and modest ongoing market share losses if uncorrected.
|
Metric
|
RF
|
TFC
|
PNC
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.57 | 11.69 | 13.57 |
Price/Book Value | 1.54 | 1.09 | 1.58 |
Price/Sales | 3.61 | 3.19 | 4.10 |
Price/Cash Flow | 9.11 | 9.28 | 9.51 |
|
Metric
|
RF
|
TFC
|
PNC
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
RF
|
TFC
|
PNC
|
|---|---|---|---|
Return on Assets (Normalized) | 1.40% | 1.10% | 1.29% |
Return on Equity (Normalized) | 12.75% | 10.15% | 12.81% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| BNP Paribas ADR
BNPQY
| LOCK|V@t%BC> | LOCK|#kp | $142B | |||
| Intesa Sanpaolo ADR
ISNPY
| LOCK|$ccQ<!&# | LOCK|f>^ | $138B | |||
| Mizuho Financial Group Inc ADR
MFG
| LOCK|!#$r>$$ | LOCK|>Qg | $130B | |||
| PNC Financial Services Group Inc
PNC
| LOCK|rXG?kX> | LOCK|?#@n | $101B | |||
| U.S. Bancorp
USB
| LOCK|>@?kGr> | LOCK|SJ | $100B | |||
| Itau Unibanco Holding SA ADR
ITUB
| LOCK|tlM#yh | LOCK|@@ | $91B | |||
| Lloyds Banking Group PLC ADR
LYG
| LOCK|G#vJnm | LOCK|&d<z | $90B | |||
| NatWest Group PLC ADR
NWG
| LOCK|QJqQ$q% | LOCK|G#%& | $76B | |||
| Societe Generale SA ADR
SCGLY
| LOCK|#W$C@?& | LOCK|lc | $71B | |||
| Deutsche Bank AG
DB
| LOCK|&Cc | LOCK|j#Z | $71B |
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United States