Regions Bank: AI Cybersecurity Spending Pushes Full-Year Costs Up 1.5% to 3.5%

Anil Chadha, CFO of US regional bank Regions Financial, said on an earnings call on October 16, 2026, that cybersecurity-related spending is expected to push the company's full-year 2026 adjusted non-interest expense up by 1.5% to 3.5%. According to presentation materials released that day, technology and infrastructure investments have already increased equipment and software expenses by 6% year over year.

Chadha directly attributed this portion of the adjusted non-interest expense growth to cybersecurity investment, and mentioned frontier AI-related spending, saying the company is continuing to invest to ensure it can provide customers with a trustworthy platform. When asked by analysts whether the bank is shifting technology budgets toward cyber risk due to cyber threats brought by AI, he said such investment has always been critical, but its current importance has risen significantly.

Chadha said the scale of the related spending is considerable, including both new investment and portions reallocated from other projects, and he expects this trend to continue. Regions Financial has $163 billion in assets and operates more than 1,200 branches across the South, Midwest and Texas through Regions Bank. The company is also advancing modernization efforts such as a cloud deposit platform.

Source: https://www.pymnts.com/earnings/2026/regions-bank-says-ai-cybersecurity-drives-up-costs-1-5percent-to-3-5percent/