BIRMINGHAM (ALABAMA) (dpa-AFX) - Regions Financial Corp. (RF), the holding company for the Regions Bank, Tuesday reported a loss for the fourth quarter, reflecting a non-cash goodwill impairment charge, despite a lower provision for loan losses. Meanwhile, KeyCorp (KEY), a financial services firm, reported a lower fourth-quarter profit, hurt by lower revenues. In the fourth quarter, Regions Financial posted a net loss available to common shareholders of $602 million or $0.48 per share, compared to a net profit of $36 million or $0.03 per share in the previous year. The company noted that the net loss was largely driven by a $731 million non-cash goodwill impairment charge related to its Investment Banking/Brokerage/Trust segment. The impairment charge included $478 million related to discontinued operations. Excluding goodwill impairment, adjusted earnings from continuing operations increased to $0.09 per share from $0.01 per share reported a year ago. On average, 23 analysts polled by Thomson Reuters expected the company to earn $0.06 per share for the quarter. Analysts' estimates typically exclude special items. Net interest income for the quarter declined to $849 million from $863 million in the prior-year quarter. Net interest margin increased 4 basis points to 3.08 percent. Non-interest income, excluding securities gains declined to $500 million from $587 million last year. Analysts estimated revenues of $1.57 billion for the quarter. Net securities gains plunged to $7 million from $333 million in the preceding year. Provision for loan losses was $295 million, down from $682 million reported last year. KeyCorp's fourth-quarter net income attributable to shareholders dropped to $194 million or $0.20 per share from $279 million or $0.32 per share a year ago. Net income from continuing operations attributable to common shareholders slid to $201 million or $0.21 per share from $292 million or $0.33 per share in the prior year. On average, 30 analysts polled by Thomson Reuters expected earnings per share of $0.20 for the quarter. Analysts' estimates typically exclude one-time items. KeyCorp added that the recent quarter's results were negatively impacted by a $24 million charge resulting from VISA's late fourth quarter announcement of a planned litigation escrow deposit. On a taxable equivalent basis, quarterly total revenue amounted to $977 million, lower than $1.16 billion in 2010. Net interest income fell to $563 million from $635 million in the previous year. Non-interest income was $414 million, compared to $526 million in the prior year. Analysts estimated revenues of $1.00 billion for the quarter. The company said its net interest margin was 3.13 percent. The provision for loan and lease losses declined by $44 million, or 59 percent from the previous year. RF is currently trading at $4.9, down 0.41 percent, on a volume of 384 thousand shares on the NYSE. KEY trades at $8.14, down 0.37 percent.
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