Regions Financial Corporation, a regional bank based in Birmingham, Alabama, reported a 4.1% decline in net income for the third quarter of 2024, totaling $446 million, down from $465 million a year prior. The bank's net interest income (NII) fell 5.7% to $1.22 billion, attributed to increased deposit costs and weak loan demand.
In response to competition and higher-yielding options, banks have raised deposit rates. This trend, coupled with a subdued loan demand as borrowers await a more favorable interest-rate environment, has pressured earnings.
Despite these challenges, Regions Financial anticipates its 2024 NII to reach $4.8 billion, slightly above previous forecasts. The bank experienced a notable increase in capital markets income, which surged 43.8% due to heightened dealmaking and debt underwriting fees, while wealth management income rose by 14.3%.
Additionally, provisions for credit losses decreased to $113 million from $145 million year-over-year, indicating improved expectations for loan repayment. Shares of Regions Financial have risen approximately 24% year-to-date.