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Research Alert: Rf: Q1 Earnings Beat But Top-line Growth Disappoints

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

RF posted mixed Q1 2026 results with operating EPS of $0.62 vs. $0.54 in the prior year, beating consensus by $0.03. Revenue of $1.87B missed consensus by 2%, declining 3% sequentially but rising 5% annually. Credit quality showed meaningful improvements with net charge-offs decreasing to 0.54% of average loans and the provision declining 21% to $91M, while NPLs declined to 0.71%, and balance sheet growth accelerated with loans increasing 2.4% to $97.9B. Management maintained both 2026 net interest income guidance of +2.5%-4% and fee income guidance of +3%-5% despite NII headwinds this quarter. We view the loan growth acceleration positively, driven by broad-based C&I lending with two-thirds consisting of investment grade credits and higher line utilization. RF's deposit base remains a competitive advantage with peer-leading cost of funds at 1.72% on interest-bearing deposits, supporting a top-quartile NIM of 3.67% despite 3 bps of quarterly compression from tighter asset spreads.

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