logo
Plus   Neg
Share
Email

Regions Financial Issues 2019 Expectations, Long-term Financial Targets

Regions Financial Corp. (RF) announced, for 2019, it targets: adjusted average loan growth in the low single digits; and adjusted total revenue growth of 2-4 percent. For the three-year period (2019-2021), Regions Financial projects: 2021 adjusted return on average tangible common equity of 18-20 percent; 2021 adjusted efficiency ratio less than 55 percent; and annual positive operating leverage.

Under the strategic growth plan, over the next three years, the company will continue expanding digital banking capabilities, such as online account openings, digital loan applications, and wealth management digital advisory capabilities while also consolidating branches across its service area. The company will pursue opportunistic hiring and de novo branch expansion in key growth markets including Atlanta, Houston, and Orlando.

Regions Financial announced it has allocated approximately $625 million in the current year, or 11 percent of 2018 revenue, for technology investments, with nearly half of that budget dedicated to new projects. Over the next three years, Regions will pilot voice banking capabilities and expand its use of artificial intelligence for both customer-facing and back-office applications.

Regions said it is committed to achieving an adjusted efficiency ratio of less than 55 percent by 2021 by growing revenue and aggressively managing expenses. Regions continues to reduce its real estate square footage through branch and back-office space consolidations, introduction of collaborative workspaces, hoteling, and expanding remote work options. The company is in the process of exiting 2.1 million square feet, resulting in a 15 percent reduction in total branch and non-branch space between 2017 and 2021. Regions said the company is also delivering reductions in third-party spending through strategic sourcing and vendor selectivity and anticipates annual cumulative savings of approximately $60 million between 2018 and 2021.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Auto giant General Motors' (GM) Chevrolet unveiled its new stunning Corvette Stingray 2020. Stingray 2020, the eighth generation of the Chevrolet Corvette, has received the biggest change since its initial launch in 1953. The new 2020 Corvette is a mid-engine vehicle, which is its engine is behind... Amazon.com's Prime Day has brought a smile to the face of some photographers who may have grabbed their best deals of their lives. The e-commerce giant accidentally discounted a wide range of premium camera gear for Prime Day earlier this week, which may have proved costly for it. Thanks to a pricing error, some lucky customers were able to buy premium camera gear bundles for below $100. Women's clothing chain Dress Barn Inc. said it started store-closing or inventory clearance event sales at the 53 stores it plans to close by the end of August. The company expects to close all its stories by end of 2019. It also released a list of the nine stores closing in July and the stores closing in August. Dressbarn has hired Gordon Brothers Retail Partners to help with the store closures.
Follow RTT