Regions Financial (RF) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 performance with $1.8 billion net income, diluted EPS of $1.93, and top-quartile ROATCE of 18%, driven by strong capital markets, wealth management, and treasury management revenue.

• Q4 net income was $508 million with EPS of $0.56; strategic investments in technology, talent, and markets continue to drive growth and efficiencies.

• Maintained a strong, diverse balance sheet and prudent risk management, positioning for growth in 2025 and beyond.

• Recognized for customer service excellence and continued focus on operational excellence.

• Plan to add approximately 140 bankers over a multi-year period in priority growth markets and enhance digital capabilities.

Financial highlights

• Full-year net income reached $1.8 billion, with EPS of $1.93 and ROATCE of 18%; Q4 net income was $508 million, EPS $0.56.

• Q4 net interest income was $1.23 billion, up 1% sequentially; net interest margin increased to 3.55%.

• Adjusted non-interest income declined 5% sequentially in Q4 but increased 9% year-over-year; non-interest income for Q4 was $585 million, up 2% sequentially.

• Adjusted non-interest expense declined 4% sequentially in Q4 and 1% for the full year; Q4 non-interest expense was $1.04 billion, down 3% sequentially.

• Efficiency ratio improved to 56.8% (GAAP) and 55.4% (adjusted) for Q4.

Outlook and guidance

• FY25 net interest income expected to grow 2%-5%, with NIM projected to reach 3.60% by Q4 2025.

• Adjusted non-interest income projected to rise 2%-4% and adjusted non-interest expense to increase 1%-3% in FY25, targeting positive operating leverage.

• Average loans expected to grow approximately 1% in 2025; average deposits to remain relatively stable.

• Full-year net charge-offs expected toward the higher end of the 40-50 basis point range, with elevated losses in H1 2025.

• Management confident in 2025 growth, citing strong market momentum and operational excellence.