Tomahawk, WI 8/14/2013 (Basicsmedia) – Regions Financial Corporation (NYSE:RF), has been operating as one of the most well known financial holding companies. Most of its products and services are offered in Texas, the Midwest and the South of the U.S. Its financial results for Q2 2013 were recently announced in which it was clear that the revenues had dropped by 9%. This was much lower than what was reported in the same quarter in 2012. The figure of $1.31 billion was much lower than that of $1.35 billion which was announced in 2012. What factors led to this situation, and can it be reversed?

Services Offered By RF

As a financial holding company, RF has the task of providing its clients with both retail and commercial banking services. In addition to the above, the company is a major provider for mortgage banking services to its clients in the Midwest, South and Texas. All the banking operations and services provided by this company are performed under the guidance of its Regions Bank. Its endeavor or plan to carry out expansion activities in its Texas branch, thus boosting its presence in this state, is designed to give it a better source of revenue and profits.

Why Is The Bank Struggling?

Whereas the recently announced financial results show that the company hasn’t reported an increase but rather a fall in its revenue for the latest quarter, this is not something which is limited to RF only. A close inspection of the financial results of other banks indicates that there has been a drop in revenue across the board. Larger banks are not in the same predicament, since this appears to be an issue which only affects regional banks. However, there is hope that the situation is not final but that it can be reversed if the bank makes timely and prudent decisions.


This image, courtesy of, shows a brief outlook of the size of RF.

It is worth remembering that very many banks are yet to fully recover from the effects of the 2008 financial crisis, which was felt globally. But RF seems to be in an enviable position if the reports from different analysts are to be believed. The bank is expected to outperform, that is, to do much better than what analysts have estimated or projected. This shows that there is a level of confidence which the rest of the market, include investors and financial experts have towards this company. Some analysts are of the opinion that this is a stock which is a perfect strong buy.

I would rate this as a buy stock. I don’t think it is ready to be listed as a strong buy yet. It is worth pointing out that the company announced a dividend which it expects to pay out to its shareholders from October 1st, 2013. The company’s annualized dividend it $0.12 per share, while the dividend yield currently stands at 1.21%. I believe that all regional banks, especially RF, are turning a corner since the economy seems to be on the up, and there is a lot of improvement in the credit services environment. This will lead to better revenues for the bank.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.