Regions Financial Posts Lower Profit In Q4 - Update

(RTTNews) - Regions Financial Corp. (RF) Tuesday reported a decline in fourth-quarter profit, reflecting marginal increase in revenues and higher provision for loan losses. The company, however, said it is optimistic about growth prospects for 2014.

Regions' provision for loan losses was $79 million, of which $75 million was related to loan transfers. Last year's loan loss provision was $37 million.

During the quarter, Regions transferred loans totaling about $686 million to held-for-sale, and the company expects to execute a sale of these loans early this year. On completion of the transaction, the company expects lower deposit administrative fees, improvement in its credit profile and further strengthening of its balance sheet.

For the fourth quarter, the Birmingham, Alabama-based parent of Regions Bank posted net income available to common shareholders of $219 million or $0.16 per share, lower than $261 million or $0.18 per share in the previous year.

Earnings from continuing operations were $0.17 per share, down from $0.19 per share in the prior-year quarter. The company said its recent-quarter results were impacted by various items totaling $0.05 per share.

On average, 28 analysts polled by Thomson Reuters expected the company to earn $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter slightly rose to $1.358 billion from $1.354 billion reported last year. Nineteen analysts had consensus revenue estimate of $1.31 billion for the quarter.

Net interest income increased to $832 million from $818 million a year earlier. Non-interest income was $526 million, compared to $536 million last year.

Tier 1 capital ratio was 11.6 percent, compared to 12 percent a year ago.

"2013 was a foundational year for Regions as we took decisive action to position the company for long-term, sustainable growth while also achieving positive loan growth," said Grayson Hall, president, chairman and CEO.

RF closed Monday's regular trading session at $10.57 on the NYSE. In the pre-market activity, the shares are down 0.66 percent.