Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. Its Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending, as well as equipment lease financing services and corresponding deposits. This segment serves corporate, middle market, and commercial real estate developers and investors. The company's Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, small business and indirect loans, consumer credit cards, and other consumer loans, as well as the corresponding deposit relationships. Its Wealth Management segment offers wealth management products and services, including credit related products, trust and investment management, asset management, retirement and savings solutions, estate planning, and personal and commercial insurance products to individuals, businesses, governmental institutions, and non-profit entities. The company also provides insurance coverage for various lines of personal and commercial insurance, such as property, vehicle, casualty, life, health, and accident insurance, as well as crop and life insurance; services related to employee benefits and wholesale insurance broking; and equipment financing products, as well as offers securities, insurance, and advisory services. In addition, it offers securities brokerage, merger and acquisition advisory, trust, and other specialty financing services. As of June 14, 2017, the company operated 1,500 banking offices and 1,900 ATMs. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.
Business Analysis of Regions Financial
The Banking Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Regions Financial compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Regions Financial to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Regions Financial with an interactive chart.
- Revenue Growth: Regions Financial reported a revenue growth of 3.0% year-on-year during 2016. Banking Industry grew at 1.5% in the same period
- COGS share of Revenues: Regions Financial COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: Regions Financial R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Regions Financial spent 48.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Banking industry average SG&A spending in the same period was 53.7%
- Inventory share of Revenues: Regions Financial Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: Regions Financial Accounts Payable share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Receivable share of Revenues: As a percentage of revenue, Regions Financial invested 6.0% of its total revenues on Accounts Receivable (A/R). Banking industry average Accounts Receivable investment in the same period was 30.1%
- PP&E share of Revenues: As a percentage of revenue, Regions Financial invested 39.6% of its total revenues on Property, Plants, and Equipments (PP&E). Banking industry average PPE investment in the same period was 14.0%
- Intangibles share of Revenues: As a percentage of revenue, Regions Financial invested 96.9% of its total revenues on Intangibles. Banking industry average Intangibles investment in the same period was 60.1%
- Net Margins: Regions Financial Net Margins in the year 2016 were 20.8%. Banking industry average Net Margins in the same period were 23.5%
Sector and Industry Association of Regions Financial
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Regions Financial is associated with Financials Sector Group, Banking Sector, and Banking Industry.
Banking sector is comprised of a single industry: Banking. Its definition is as follows:
- Banking industry includes banks providing a broad range of financial services, including retail banking, loans and money transmissions.
Industry Ranking of Regions Financial
With $5.3 billion revenues, Regions Financial ranked number 10 of all the companies in the US Banking industry. There were a total of 179 public companies in the US Banking industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Banking industry by revenues during 2016 were:
- JPMorgan Chase ($95.7 billion)
- Wells Fargo ($84.5 billion)
- Bank of America ($83.7 billion)
- Citigroup ($69.9 billion)
- US Bancorp ($19.8 billion)
- PNC Financial Services Group ($15.2 billion)
- BB&T ($10.2 billion)
- SunTrust Banks ($8.2 billion)
- Fifth Third Bank ($6 billion)
- Regions Financial ($5.3 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Regions Financialand its peers on select key performance indicators by clicking the reports provided below