Regions Financial sees 'modest' improvement in net interest income in Q4
Says plans to increase $300M expense elimination by $100M through 2019, totaling 11.5% of adjusted expenses. Says will accelerate savings where possible. Says continues to exercise caution and remain focused on prudent and quality loan growth with an emphasis on diversification and appropriate risk-adjusted returns. Given the recent moves to modestly higher long-term rates, expects $4M-$6M of improvement in premium amortization during the Q4. Excluding impact of the leveraged lease adjustment, expects modest improvement in net interest income and other financing income in Q4 and for margin to be relatively stable. Says "focused on what we can control in an uncertain environment." For 2016, expects "relatively stable" average loan growth and average deposits. Sees 2016 NII and other financing income up 2%-4% and adjusted non-interest income growth of over 6%. Sees 2016 adjusted expenses flat to up modestly, efficiency ratio about 63%, adjusted operating leverage of 2%-4% and net charge-offs of 25-35bps. Comments from slides that will be presented on the Q3 earnings conference call.