Regions Financial ( NYSE: RF ) stock gapped up 3.5% in Friday premarket trading after the company's Q4 earnings and revenue topped Wall Street expectations as net interest income climbed driven by rising interest rates and robust loan growth.
For its initial 2023 outlook , the bank expects net interest income to grow 13%-15% compared with the +13.8% Visible Alpha consensus (fully taxable equivalent). For Q1, NII is expected to increase 1%-3%.
2023 average loan balance growth is expected to be around 4% Y/Y. Sees adjusted total revenue climbing 8%-10% from 2022.
Adjusted non-interest expenses are anticipated to rise 4.5%-5.5%, and adjusted operating leverage is expected to be ~4%.
Looking at Q4 2022 results , EPS of $$0.70, exceeding to average analyst estimate of $0.66, advanced from $0.43 in both Q3 and the year-ago period. Adjusted total revenue of $2B, beating the $1.95B consensus, accelerated from $1.87B in Q3 and from $1.63B a year ago.
Net interest income (taxable equivalent basis) came in at $1.41B, surpassing the $1.38B Visible Alpha consensus, rose from $1.27B for the quarter ended Sept. 30, 2022, and from $1.03B for the quarter ended Dec. 31, 2022. In turn, net interest margin (fully taxable equivalent) of 3.99% gained from 3.53% in Q3 and from 2.83% in Q4 2021.
Noninterest income was $600M slipped from $605M in the prior quarter and from $615M a year before. Adjusted noninterest expense of $1.01B compared with $988M in Q3 and $967M in Q4 2021.
Provision for credit losses was $112M vs. $135M in Q3 and $110M in Q4 2021.
Total average loans of $95.8B edged up from $94.7B in the previous quarter, while total average deposits of $133B drifted down from $135.5B in Q3.
Conference call at 10:00 a.m. ET.
Earlier, Regions Financial GAAP EPS of $0.70 beats by $0.04, revenue of $2B beats by $50M .
For further details see:
Regions Financial Q4 profit, revenue beat on higher NII, rates, loan growth