Regions’ wealth revenue ticks up despite dip in insurance business
Regions Bank's wealth management businesses turned in a mixed first-quarter performance, according to the latest financial results released by the bank's parent on Tuesday.
The Birmingham, Ala.-based bank generated $109 million in first-quarter revenue from its brokerage, trust and insurance operations, up 2.8% from $106 million in the same quarter a year ago. Revenue was also up from the prior quarter, rising 5.8%.
The 2.8% year-over-year increase was “driven by growth in investment management and trust fees, partially offset by lower insurance income,” the bank explained in the earnings release.
The trust services business was the biggest revenue driver, generating $56 million in the first quarter, up a significant 12% year-over-year. Insurance services hauled in $37 million, off by $3 million, or 7.5%, from the same quarter in 2016. Brokerage operations whipped up another $16 million, unchanged from the year-ago quarter.
Regions has been making strides to boost its wealth management business, announcing major management changes last year. It named Kate Randall Danella head of Regions Private Wealth Management, replacing Anne Copeland who left to pursue executive coaching opportunities. It also named Rick Ulmer, a regional insurance executive, to lead the insurance business. Ulmer succeeded Curren Coco, who left the bank to pursue other interests, according to Regions.
Overall, Regions Financial Corp., the parent of Regions Bank, earned $278 million, or 23 cents per diluted share, in the first quarter, compared with $257 million, or 20 cents per diluted share, in the same quarter the year before.
“Our first-quarter performance reflects a solid start to 2017. We achieved solid growth in fundamental areas such as checking accounts, wealth management relationships, and active credit cards as well as strong growth in net interest income and other financing income,” said Grayson Hall, Regions' chairman, president and CEO.