Regions Financial (RF) Q4 2025 earnings summary

Executive summary

• Reported strong full-year 2025 earnings of $2.1 billion, with diluted EPS of $2.30 (adjusted $2.33), and return on average tangible common equity of 18.51%, driven by record Wealth and Treasury Management results and disciplined expense management.

• Fourth-quarter net income was $514 million, with diluted EPS of $0.58 (adjusted $0.57), impacted by tax and litigation expenses.

• Advanced technology modernization, including a high-performing mobile app, investments in security, data, and AI, and ongoing core system upgrades.

• Built momentum for 2026 with improved client sentiment, digital growth, and strategic investments in talent and technology.

• Leadership transition as long-serving CFO retires, succeeded by Anil Chadha.

Financial highlights

• FY25 net income available to common shareholders was $2,061M (adjusted $2,090M); total revenue was $7,526M (adjusted $7,576M); efficiency ratio improved to 56.8% in 4Q25.

• Net interest income for 4Q25 was $1.28 billion, up 4.1% year-over-year; net interest margin increased to 3.70%.

• Adjusted non-interest income grew 5% in 2025, with record fee income in Wealth Management and Corporate Bank.

• Tangible book value per share rose 20% year-over-year to $13.75; $2 billion returned to shareholders via dividends and buybacks.

• Allowance for credit losses ratio at 1.76%; net charge-offs at 0.59% of average loans in 4Q25.

Outlook and guidance

• FY26 net interest income expected to grow 2.5–4%; adjusted non-interest income to grow 3–5%; adjusted non-interest expense to rise 1.5–3.5%.

• Average loan and deposit balances expected to increase low single digits year-over-year in 2026.

• Net charge-offs/average loans expected between 40–50bps in 2026, with potential to trend lower if macro conditions improve.

• Effective tax rate for 2026 expected to return to the 20.5–21.5% range.

• Expect to generate positive operating leverage and manage CET1 (inclusive of AOCI) around the mid-point of the 9.25–9.75% range.