RF · 8-K · 20260807PR000057

Guidance / Outlook

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 56 · Surprise 68 · No source text

Management expects adjusted non-interest income to grow 3%–5% in fiscal 2026 versus fiscal 2025, but expects performance to trend toward the lower end of that range based on first-half results. Capital Markets revenue excluding CVA/DVA is expected to range from $90 million to $105 million per quarter, with third-quarter revenue toward the lower end because of market volatility and elevated interest rates. Regions expects adjusted fiscal 2026 non-interest expense to increase 1.5%–3.5% versus fiscal 2025 while generating positive adjusted operating leverage. These outlook items reflect management's forward view through the remainder of 2026.

Key facts

• FY 2026 expectations: Net Interest Income up 2.5–4% vs 2025 ($4,991), Adjusted Non-Interest Income up 3–5% vs adjusted 2025 $2,585 (expect lower end), Adjusted Non-Interest Expense up 1.5–3.5% vs adjusted 2025 $4,331, Average Loans up low single digits vs 2025 $96,124, Average Deposits up low single digits vs 2025 $129,146, Net Charge-Offs 40–50 bps, Effective Tax Rate 20.5–21.5% source
• Continue to expect FY26 avg balances to be up low single digits compared to FY25 source
• Continue to expect FY26 NCOs to be between 40 - 50bps source
• Expectations for 3Q26: NII to increase ~2% vs 2Q26; NIM stable to modestly higher exiting year at approximately 3.70%; Capital Markets quarterly revenue expected $90–$105M trending toward lower end in 3Q26 source
• Continue to expect FY26 avg loan balances to be up low single digits compared to FY25 source

Impact estimates