Regions Financial Corp RF reported an adjusted revenue decline of 7.1% Y/Y in fourth-quarter FY23 to $1.812 billion, beating the consensus of $1.800 billion.
Total revenue decreased 9.5% Y/Y in the quarter. Net interest income decreased 12.1% Y/Y to $1.23 billion and fell 4.6% Q/Q due to accelerating deposit and funding costs and a portion of the company’s forward starting interest rate hedges becoming active.
Provision for credit losses stood at $155 million, higher than $112 million in the year-ago period.
The company reported an adjusted EPS of $0.52, surpassing the consensus of $0.46.
Total deposits fell 5.0% Y/Y to $126.4 billion, while total loans rose 2.7% Y/Y to $98.29 billion.
The common equity Tier 1 ratio at the Q4 end totaled 10.2%, higher than 9.6% a year ago. The company had a total primary liquidity of approximately $38.2 billion as of December 31, 2023.
In the fourth quarter, the company repurchased 16 million shares of common stock for $252 million through open market purchases and declared $223 million in dividends to common shareholders.
John Turner, President and CEO said, “Our protective hedging strategies continue to position us for success in any rate environment and support our commitment to generating consistent, sustainable long-term performance.”
“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. We remain confident in our strategic plan, and our strong performance in 2023 provides a solid foundation as we enter 2024.”
Price Action: RF shares are trading higher by 2.14% at $18.34 on the last check Friday.
Photo via Wikimedia Commons
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