BIRMINGHAM, Ala. - Regions Financial Corporation (NYSE:RF) reported fourth quarter earnings that beat analyst expectations, sending shares 0.61% higher in premarket trading Friday.
The Birmingham-based bank posted earnings per share of $0.59, beating the consensus estimate of $0.55. Revenue came in at $1.85 billion, slightly below expectations of $1.86 billion but up 2.2% YoY.
"This was a year of records at Regions, with our performance driven by a consistent focus on superior service as well as soundness, profitability, and growth," said John Turner, Chairman, President and CEO of Regions Financial Corp.
Net interest income rose 1% sequentially to $1.23 billion, as favorable deposit cost management offset lower asset yields. The net interest margin expanded 1 basis point to 3.55%.
Non-interest income increased 2% from the prior quarter to $585 million on a reported basis. Adjusted non-interest income fell 5% to $615 million, impacted by $30 million in securities losses from repositioning trades.
Expenses decreased 3% quarter-over-quarter to $1.04 billion on a reported basis and 4% to $1.03 billion on an adjusted basis. The efficiency ratio improved to 55.4% on an adjusted basis.
Average loans declined modestly to $96.4 billion, while average deposits increased slightly to $126.5 billion. The allowance for credit losses ratio held steady at 1.79% of loans.
"We are excited about the momentum we have going into 2025 and remain focused on a solid growth plan," Turner added.
Regions repurchased approximately 3 million shares for $58 million during the quarter and declared $226 million in common dividends. The Common Equity Tier 1 ratio improved to an estimated 10.8%.
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