Jan 16 (Reuters) – Regions Financial reported a rise in fourth-quarter profit on Friday, helped by higher interest income and strong performance in wealth management, along with growth in card and ATM fees.
Loan demand has picked up across the industry in recent months after the Federal Reserve lowered benchmark rates. While rate cuts can pressure interest income in the near term, they tend to boost borrowing and reduce deposit costs over time.
The Birmingham, Alabama-based bank’s net interest income, the difference between what banks pay customers on deposits and earn as interest on loans, rose 4.1% to $1.28 billion.
Regions forecast interest income growth between 2.5% and 4% in 2026, below analysts’ expectation of a 4.2% rise, according to data compiled by LSEG. Shares of the bank were last down 1.2% before the bell.
Its non-interest income grew 9.4% to $640 million during the quarter.
Traditionally the territory of Wall Street’s biggest banks, regional lenders have made inroads in recent years, especially by catering to middle-market demand.
CEO John Turner said the bank generated record results in wealth management and treasury management in 2025. He also signaled that the underlying trends in the economy were improving.
Regions ended the quarter with the allowance for credit losses ratio at 1.76%, compared with 1.79% a year ago.
Provisioning is often viewed as a barometer of the economic outlook, as uncertainty pushes banks to set aside more money to cover for the risk that consumers and businesses may struggle to repay commercial loans, credit cards or mortgages.
Net income available to common shareholders rose to $514 million during the quarter, from $508 million a year ago.
(Reporting by Pragyan Kalita and Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
