Huntington Bancshares Profit Up 9%
22 January 2016 - 2:30AM
Dow Jones News
Regional bank Huntington Bancshares Inc. reported a 9% increase
in fourth-quarter earnings, helped by an increase in loans and
leases.
Like many banks, Columbus, Ohio-based Huntington has had to cope
with low interest rates. In the latest quarter, the lender's net
interest margin, a measure of lending profitability, fell to 3.09%
from 3.18% a year ago.
Following the financial crisis, banks have faced historically
low interest rates. In December, the Federal Reserve raised its
benchmark rate slightly and signaled it would gradually lift rates
as the economy strengthens.
Huntington said Thursday that the Fed's action was an
"encouraging sign," but it would still "conservatively budget" for
unchanged rates throughout 2016. The bank said its expects
full-year revenue growth to be consistent with its long-term goal
of 4% to 6% growth a year.
For the fourth quarter, Huntington reported a profit of $178.3
million, or 21 cents a share, up from $163.6 million, or 19 cents a
share. Revenue grew 8.9% to $777.6 million.
Analysts polled by Thomson Reuters projected 21 cents in
per-share earnings and $761.2 million in revenue.
Lending and deposits increased. Automobile and commercial loans
helped drive a 5.7% increase in total loans. Deposits rose
8.9%.
Increases in card-processing and mortgage-banking revenue helped
drive fee-based income up 17%.
Noninterest expenses grew 3% from a year prior on increases in
personnel costs and outside data-processing services.
Shares in the lender, down about 13% over the past three months,
fell 4.3% in early trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 21, 2016 10:15 ET (15:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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