Boston, MA 11/07/2013 (wallstreetpr) – Regions Financial Corporation (NYSE:RF) is now focusing on raising revenue through its wealth management business. The financial holding company has hired more than 100 employees and financial adviser to help in making its wealth management vibrant and profitable. Focusing more on wealth management which seems to be promising millions of dollars in revenue should help the company plug the holes in its financial fabric.
Just recently, it stock fell to its worst levels in 12 months following the reported decline in its profit largely due to unfaltering expenses and reduction in mortgage refinancing. As loan interest rates stay up, a lot of borrowers have been put off and financial institution have been left with reduced options to save their bottom line from sinking. Wealth management now seems to be the new revenue frontier and Regions must be reading the script very well.
In its third quarter data, Regions net income declined 5.3% to come at $285 million, reflecting 20 cents per share. This per share earning missed the analysts’ consensus estimate by 1 cent. A year earlier, the Birmingham-based financial services company realized net income of $301 million, or 21 cents per share.
The bank’s undoing has been its expenses and efforts to cut the expenses seem to have flopped. By improving its standing in the wealth management business, the only financial services segment that still looks positive, Regions should be able to offset the declining mortgage revenue and other segments of its banking business.
Regions CEO Grayson Hall has announced recently that the institution has a clear goal to pursue in the coming months and quarters. And that goal is generating positive operating leverage. By this he means changing strategy to focus more in wealth management. With wilting mortgage refinancing business, wealth management holds the promise in the bank’s rebound. Regions reports its fourth quarter on Jan. 20.