HOUSE_OVERSIGHT_014338.jpg
1.51 MB
Extraction Summary
4
People
4
Organizations
1
Locations
3
Events
3
Relationships
0
Quotes
Document Information
Type:
Financial research report / conference summary
File Size:
1.51 MB
Summary
This document is a Bank of America Merrill Lynch report summarizing a presentation from Regions Financial (RF) management at a conference on November 17, 2016. Regions' executives expressed an upbeat outlook for 2017, citing the US election as a positive tailwind and outlining growth strategies in mortgage, card, and online lending. The analysis also includes survey data on market sentiment regarding multifamily lending and the anticipated impact of the GOP sweep on bank earnings.
People (4)
| Name | Role | Context |
|---|---|---|
| Scott Peters | Senior EVP and Consumer Services Group Head |
Mentioned as a representative from Regions Financial who noted the company is utilizing its retail platform to drive ...
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| Logan Pichel | Consumer Lending Group Head |
Mentioned as a representative from Regions Financial who noted the company is utilizing its retail platform to drive ...
|
| Darren Smith | Treasurer |
Mentioned as a representative from Regions Financial who noted the company is utilizing its retail platform to drive ...
|
| Trump | Incoming Administration |
Mentioned in the context of the 'incoming Trump administration' whose potential pro-growth measures could push out an...
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Regions Financial (RF) |
The subject of the analysis, a company focused on driving growth through consumer, mortgage, card, and online lending.
|
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| BofA Merrill Lynch Global Research |
The source of the research and the charts presented in the document.
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| Bank of America Merrill Lynch |
The authoring organization, as indicated by the logo and footer.
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| GOP |
Mentioned in a chart title regarding the impact of the 'GOP sweep' on bank earnings.
|
Timeline (3 events)
17 November 2016
2016 Future of Financials Conference, where Regions Financial management presented their outlook.
November 2016
US election, which management felt provided tailwinds for Regions' revenue growth prospects.
United States
Locations (1)
| Location | Context |
|---|---|
|
Implied by the mention of the 'US election'.
|
Relationships (3)
Both are listed as executives at Regions Financial presenting at the conference.
Both are listed as executives at Regions Financial presenting at the conference.
Both are listed as executives at Regions Financial presenting at the conference.
Full Extracted Text
Complete text extracted from the document (2,432 characters)
organic and M&A driven growth opportunities during the next downturn. That said, management noted that it was very likely that potential pro-growth measures taken by the incoming Trump administration could push out any downturn, as in the short run the economy would witness stronger growth.
Chart 36: How do you view fundamentals for multifamily lending in 2017?
60%
50%
40%
30%
20%
10%
0%
60%
50%
40%
30%
20%
10%
0%
11%
Softening fundamentals should lead to slower financing activity next year
Softening fundamentals should lead to slower financing activity next year
0%
Softening fundamentals should lead to worsening credit metrics
Softening fundamentals should lead to worsening credit metrics
28%
Softening fundamentals should lead to slower financing activing and worsening credit metrics
Softening fundamentals should lead to slower financing activing and worsening credit metrics
50%
Some concern, but only in certain regions and at certain rental price points
Some concern, but only in certain regions and at certain rental price points
11%
No concern
No concern
Source: BofA Merrill Lynch Global Research
Regions Financial (RF), B-2-7, Neutral
▪ Regions harnessing consumer to drive growth: Scott Peters, Senior EVP and Consumer Services Group Head, Logan Pichel, Consumer Lending Group Head, and Darren Smith, Treasurer, noted that Regions is utilizing its retail platform to drive growth. Management highlighted strength in mortgage, card, and online lending as avenues for growth. Importantly, management felt the US election has provided tailwinds for Regions revenue growth prospects heading into 2017. Combined with a better rate back drop, management sounded upbeat on its outlook.
▪ Regions harnessing consumer to drive growth: Scott Peters, Senior EVP and Consumer Services Group Head, Logan Pichel, Consumer Lending Group Head, and Darren Smith, Treasurer, noted that Regions is utilizing its retail platform to drive growth. Management highlighted strength in mortgage, card, and online lending as avenues for growth. Importantly, management felt the US election has provided tailwinds for Regions revenue growth prospects heading into 2017. Combined with a better rate back drop, management sounded upbeat on its outlook.
Chart 37: What do you think is the biggest impact of the GOP sweep to bank earnings?
40%
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10%
0%
40%
30%
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0%
20%
Interest rates rising faster across the curve due to stronger dollar
Interest rates rising faster across the curve due to stronger dollar
36%
Tax cuts and infrastructure spending spurring growth, therefore better loan demand
Tax cuts and infrastructure spending spurring growth, therefore better loan demand
32%
Lower regulatory burden, driving higher ROEs as excess capital is returned back to shareholders or reinvested for growth
Lower regulatory burden, driving higher ROEs as excess capital is returned back to shareholders or reinvested for growth
12%
No real impact/too early to tell
No real impact/too early to tell
Source: BofA Merrill Lynch Global Research
▪ Multiple channels to drive loan growth: Management illustrated several avenues for loan growth. Within mortgage, Regions has 450 originators that generate 95% of its $6bn in annual originations. Management is seeking to increase its originations from home loan direct and telephone banking to 15-20% of total originations (currently 5% of originations) given the greater profitability from these channels. Card growth has also been strong with active credit card growth at 12%
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2016 Future of Financials Conference | 17 November 2016
2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
Merrill Lynch
HOUSE_OVERSIGHT_014338
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