Regions Financial: 3Q Results: Expenses and Credit Better Than Expected; Net II and 4Q Guide In Line

Regions Financial reported 3Q EPS of $0.71 versus consensus of $0.66, with the upside driven by better-than-expected costs and credit; net interest income and fees on an adjusted basis (excluding securities losses) were in line. Net interest income rose 2% q/q and NIM increased 2bps to 3.68%. Average loans grew 0.5% q/q while deposits fell 1%. Fees rose 3% q/q ex-securities losses and 1% y/y, with capital markets fees of $107m above the $90-105m guidance range. Credit quality was very good, with net charge-offs down to 29bps from 42bps in 2Q and 55bps a year ago, alongside a $4m loan loss reserve release;