Regions Financial (RF) Q3 2025 earnings summary

Executive summary

• Reported Q3 2025 net income available to common shareholders of $548M ($0.61 EPS), with adjusted net income of $561M ($0.63 EPS), up 8% year-over-year, driven by higher net interest income and record Wealth Management and Capital Markets results.

• Total revenue reached $1.94B, up 7% year-over-year, with robust fee income and disciplined capital allocation.

• Investments in technology and talent are progressing, supporting future growth and operational efficiency.

• Benefited from a loyal customer base, attractive footprint, and a diverse balance sheet with robust liquidity and prudent credit risk management.

Financial highlights

• Net interest income was $1.26B–$1.3B in Q3 2025, with net interest margin at 3.59%, up 5 bps year-over-year but down 6 bps sequentially.

• Adjusted non-interest income increased 6% sequentially, with record capital markets and wealth management fees.

• Adjusted non-interest expense rose 4% sequentially, mainly from higher salaries, benefits, and incentive compensation.

• Efficiency ratio improved to 56.9% (adjusted).

• Average loans grew 1% sequentially, with business lending growth offsetting slight consumer loan declines.

Outlook and guidance

• FY25 net interest income expected to grow 3%-4% versus 2024; adjusted non-interest income to grow 4%-5%.

• Adjusted non-interest expense for FY25 expected to rise ~2%, with positive operating leverage at the lower end of the 150-250 bps range.

• Average loan balances expected to remain stable; average deposits to rise low single digits.

• Net charge-offs expected at ~50-55 bps for 2025, with losses remaining elevated in Q4.

• Baseline economic forecast anticipates 1.8% real GDP growth for 2025 and 2026, with unemployment around 4.3–4.4%.