SOURCE: The Bedford Report

The Bedford Report

April 27, 2011 08:16 ET

Regions Financial and BB&T Search for New Revenue Drivers

The Bedford Report Provides Analyst Research on Regions Financial and BB&T

NEW YORK, NY--(Marketwire - Apr 27, 2011) - This earnings season regional banks have posted mixed results as improving credit quality has been offset by weak loan demand and lower revenue from mortgage lending. Analysts at KBW estimate that loans were down approximately six percent in the most recent quarter, dragging down revenues throughout the banking sector. The Bedford Report examines the outlook for companies in the Regional Banking Sector and provides research reports on Regions Financial Corporation (NYSE: RF) and BB&T Corporation (NYSE: BBT). Access to the full company reports can be found at:

www.bedfordreport.com/2011-04-RF

www.bedfordreport.com/2011-04-BBT

With the real estate market showing limited signs of recovery as rates rise and the foreclosure crisis continues to weigh down the market, regional banks are struggling to post improving revenues. In addition, new regulations that reduce debit-card fees are poised to hurt top lines throughout the banking sector. The Dodd-Frank Act has called for a limit on the amount banks can charge in debit card swipe fees; however, Senate and House lawmakers are planning to put forth legislation that would postpone the debit card policy for at least two years.

The Bedford Report releases regular market updates on the Regional Banking sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Last week BB&T said that it posted first quarter revenues of $2 billion -- below analyst estimates looking for revenues of $2.2 billion. The bank explained that the revenue decline was attributed to losses on commercial loans as well as a decline in mortgage banking revenues. On the upside, CEO Kelly King, said that the banks posted "improvements in all measures of credit quality."

In order to offset the weak mortgage market, Regions Financial has begun to diversify its loan portfolio by lending to defense and technology companies. Last week Regions Financial posted a surprise first quarter net income of $17 million, or 1 cent per share, compared with a loss of $255 million, or 21 cents per share, in the year-ago quarter. Regions' chief executive, Grayson Hall believes the bank is making "solid headwind towards sustainable profitability and key credit metrics continue to improve."

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