Huntington Q4 Earnings & Revenues Beat on Higher NII & Fee Income

Huntington Bancshares Incorporated HBAN reported fourth-quarter 2024 adjusted earnings per share (EPS) of 34 cents, which surpassed the Zacks Consensus Estimate of 31 cents. In the prior-year quarter, the company reported EPS of 15 cents.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.For 2024, adjusted EPS was $1.23, which beat the Zacks Consensus Estimate of $1.22. This compares favorably with $1.11 reported in the year-ago quarter.Results have reflected improvements in fee income, net interest income (NII) and average loan and deposit balances. A fall in expenses was another positive. However, an increase in the allowance for credit losses was a headwind.  The company reported a net income attributable to common shareholders (GAAP basis) of $530 million in the quarter, which increased significantly from $243 million reported in the prior-year quarter.For 2024, the company reported net income attributable to common shareholders (GAAP basis) of $1.94 billion, which decreased 1% year over year.HBAN’s Revenues Increase, Expenses FallTotal quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 13.6% year over year to $1.97 billion in the fourth quarter. The top line surpassed the Zacks Consensus Estimate of $1.9 billion.Full-year revenues (on a fully taxable-equivalent or FTE basis) aggregated to $7.43 billion, which increased marginally year over year. The top line beat the Zacks Consensus Estimate of $7.37 billion. NII (FTE basis) was $1.4 billion, up 6.2% from the prior-year quarter’s tally. The increase was primarily due to a rise in average earning assets, partially offset by an increase in average interest-bearing liabilities and a decline in net interest margin (NIM). NIM contracted 4 basis points to 3.03% in the reported quarter.Non-interest income moved up 38% year over year to $559 million. The upside was driven by a rise in payments and cash management revenues, wealth and asset management revenues, customer deposit and loan fees, capital markets and advisory fees, mortgage banking income and other non-interest income. Non-interest expenses were down 12.6% year over year to $1.18 billion. The fall was mainly due to a decline in net occupancy expense, deposit and other insurance expense, professional services fees and other non-interest expense. The efficiency ratio was 58.6%, down from the year-ago quarter’s 77%. A fall in the efficiency ratio indicates an increase in profitability.HBAN’s Loans and Deposits IncreaseAs of Dec. 31, 2024, average loans and leases at Huntington inched up nearly 2.9% sequentially to $128.2 billion. Average total deposits increased 1.9% to $159.4 billion.HBAN’s Credit Quality: Mixed BagNet charge-offs were $97 million, up from $94 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased 1.9% to $2.45 from the prior-year quarter. Total non-performing assets were $822 million as of Dec. 31, 2024, up 15.6% from the prior-year quarter. Net charge-offs/Average total loans and leases were 0.30%, down from 0.31% in prior-year quarter. In the fourth quarter, the company recorded a provision for credit losses of $107 million, which decreased 15.1% from the year-ago quarter.HBAN’s Capital Ratios: Mixed BagThe common equity tier 1 risk-based capital ratio was 10.5% in the fourth quarter, up from 10.2% in the year-ago period.The regulatory Tier 1 risk-based capital ratio was 11.9%, down from 12% in the comparable period in 2023. The tangible common equity to tangible assets ratio in the fourth quarter was 6.1%, which remained flat from the year-ago quarter.Our View on HBANHuntington’s inorganic expansion moves are likely to bolster its revenue growth in the near term. Also, its efforts to expand its commercial banking capabilities and enhance its footprint in key growth markets will support its financials in the long run. However, the current volatile macroeconomic backdrop is a concern for Huntington.Huntington Bancshares Incorporated Price, Consensus and EPS Surprise Huntington Bancshares Incorporated price-consensus-eps-surprise-chart | Huntington Bancshares Incorporated QuoteCurrently, Huntington carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Dates & Expectations of Bank StocksWintrust Financial Corporation WTFC is scheduled to release fourth-quarter 2024 earnings on Jan. 31. The company carries a Zacks Rank #2 at present.The Zacks Consensus Estimate for WTFC’s quarterly earnings has remained unchanged at $2.52 per share over the past seven days.Commerce Bancshares, Inc. CBSH is scheduled to release fourth-quarter 2024 earnings on Jan. 22. The company carries a Zacks Rank #3 (Hold) at present.The Zacks Consensus Estimate for CBSH’s quarterly earnings has moved downward to 94 cents per share over the past seven days.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH): Free Stock Analysis Report Wintrust Financial Corporation (WTFC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks