Regions Financial(Rf) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for RF
Report - net profit margin
This chart shows the historical trend of net profit margin for RF compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Net Profit Margin
Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.
Interpretation:
• In '2021', RF's net profit margin was 39.2%, measuring the overall profitability of the company. Industry average for Major Banks in '2021' stood at 33.0%.
• In '2022', RF's net profit margin was 31.3%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Major Banks in '2022' stood at 30.3%. Industry average declined by 2.7% from previous year.
• In '2023', RF's net profit margin was 27.4%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Major Banks in '2023' stood at 24.0%. Industry average declined by 6.3% from previous year.
• In '2024', RF's net profit margin was 26.7%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Major Banks in '2024' stood at 21.3%. Industry average declined by 2.7% from previous year.
Overall, RF's net profit margin has been volatile but showed a downward trend over the past 4 years.
Formula: Net Profit Margin = Net Income / Revenue
Good Range: Ranges 5%-20% for many industries.