Regions Financial Corp has reported a decline in fourth-quarter earnings as it generated less interest income and faced a number of additional charges.
The Birmingham, Alabama-based lender reported a 2% decline in revenue to $1.81 billion for the three months to December 31, 2023, narrowly beating the $1.8 billion consensus of analysts polled by Zacks Investment Research.
Net interest income fell 12% to $1.231 billion from a year earlier.
Earnings per share (EPS) dropped 44% to $0.39, partly due to an industry-wide special assessment by the Federal Deposit Insurance Corporation (FDIC) following the small banks’ crisis of early 2023.
Other charges over the quarter included increased severance-related costs and a net provision expense associated with an unsecured consumer loan portfolio sale.
Adjusted EPS came in at $0.52, beating the $0.48 expected by Wall Street.
"While the industry continues to face economic and regulatory uncertainty, we are confident in our ability to adapt to the changing landscape while continuing to deliver one of the best returns in our peer group," the bank's president and CEO John Turner commented in a statement.