Regions Financial (RF) Goldman Sachs 2024 U.S. Financial Services Conference summary

Strategic positioning and outlook for 2025

• Anticipates a solid year in 2025 with real GDP growth of about 2% and strong capital and liquidity positions.

• Plans to invest in people, especially relationship managers and wealth advisors, to capture growth in the Southeast and Southwest.

• Focused on leveraging migration trends and expanding coverage in small business and middle market segments.

• Emphasizes a business-friendly environment post-election and readiness to capitalize on growth opportunities.

Loan growth and client sentiment

• Loan growth has been subdued in 2024 due to rate and election uncertainty, but client optimism is rising.

• Corporate banking commitments have grown, though line utilization remains below historical averages.

• Loan and revenue pipelines are 42% higher year-over-year, indicating potential for increased activity in 2025.

• Clients are pre-funding inventory and preparing for supply chain disruptions, signaling readiness for capital investment.

Net interest income, margin, and deposit trends

• Net interest income (NII) growth is expected, driven by repricing of loans and securities, not by the number of Fed cuts.

• Margin is projected to reach the 360s basis points in 2025, aided by balance sheet repricing and deposit growth.

• Deposit costs are trending as expected, with a shift from low 30s to mid-30s beta over the next quarters.

• Consumer deposit growth is stabilizing, with a focus on expanding accounts and household relationships.