In This Article:
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Earnings Per Share (EPS): $0.34 for the fourth quarter.
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Return on Tangible Common Equity (ROTCE): 16.4% for the quarter.
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Average Loan Balances: Increased by $7 billion or 5.7% year-over-year.
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Average Deposits: Increased by $9.7 billion or 6.5% year-over-year.
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Common Equity Tier 1 (CET1): Ended the quarter at 10.5%, up 30 basis points from last year.
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Tangible Book Value Per Share: Increased by 6.9% year-over-year.
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Net Charge-Offs: 30 basis points, stable from the prior quarter.
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Allowance for Credit Losses: Ended the quarter at 1.88%.
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Net Interest Income: Increased by $45 million or 3.3% in the quarter, reflecting over 6% growth year-over-year.
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Net Interest Margin: 3.03% for the fourth quarter, up 5 basis points from the prior quarter.
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Non-Interest Income: Increased by $154 million from the prior year; core fee revenues increased by $96 million or 20%.
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Capital Markets Revenue: $120 million in the fourth quarter, up 74% from the prior year.
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Non-Interest Expense: Increased sequentially by $48 million; core expenses increased by $57 million from Q3.
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Criticized Asset Ratio: Improved to 3.76%.
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Non-Performing Asset Ratio: Ended the quarter at 63 basis points.
Release Date: January 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Huntington Bancshares Inc (NASDAQ:HBAN) reported strong fourth-quarter results, with record fee revenues and accelerated growth in loans and deposits.
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The company achieved a return on tangible common equity (ROTCE) of 16.4% for the quarter.
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Average loan balances increased by $7 billion or 5.7% year-over-year, reflecting strong production and contributions from existing and new businesses.
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Huntington Bancshares Inc (NASDAQ:HBAN) maintained strong credit performance, with net charge-offs stable at 30 basis points.
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The company is well-positioned to drive attractive and sustained revenue growth, with a focus on organic growth strategies and risk management.
Negative Points
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The net interest margin (NIM) is expected to be modestly lower in the first quarter of 2025, reflecting normal day count headwinds and a dynamic interest rate environment.
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Commercial real estate balances declined by $465 million, indicating challenges in this sector.
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The company faces uncertainty from trade, immigration, and tax policy, which could impact financial performance.
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Huntington Bancshares Inc (NASDAQ:HBAN) has a relatively high allowance for credit losses at 1.88%, which could indicate potential credit risks.
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The company is not likely to engage in share repurchases in the near term due to capital management priorities and regulatory considerations.