Business & Finance
Business and Finance
Business and Finance 
Tue, February 8, 2011
NEW YORK, NY--(Marketwire - February 8, 2011) - Last week the US economy was given a boost when the Bureau of Labor Statistics (BLS) announced that the US unemployment rate dropped to 9 percent in January from 9.4 percent in December. Paul Zemsky, the head of asset allocation at ING Investment Management, argues that "The U.S. economy is all about jobs and anything that leads folks to believe that there's a better job market will be good for equities." This is especially true for regional banks. When the Obama Administration administered the much publicized stress tests on the banking sector, banks were tested for their ability to withstand the pressure stemming from a hefty 10% unemployment rate. High unemployment has led to a wave of foreclosures, a series of delinquencies in consumer lending and has compressed most banks' bottom lines. The Bedford Report examines the outlook for companies in the Regional Banking Sector and provides research reports on Regions Financial Corporation (
[ www.bedfordreport.com/2011-02-RF ]
[ www.bedfordreport.com/2011-02-USB ]
In recent quarters, regional banks have begun to post improved credit quality. More thorough and cautious credit checks have led to fewer delinquent loans and greater financial stability. As such, Banks are setting aside less money to cover bad loans, and some are seeing loan losses recede. While credit quality improved, the high unemployment rate has been damaging to banks' long term loan growth. Improving employment numbers will hopefully, in time, lead to a boost in loan growth across the banking sector.
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.
In the company's fourth quarter earnings call, Regions reported a net income of 3 cents per share, compared favorably with a loss of 17 cents in the prior quarter and 51 cents in the year-ago period. Net charge-offs for Regions decreased to 3.22% of average loans from 3.52% in the prior quarter and 2.99% in the year-ago quarter.
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