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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.
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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 Fall
Total 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 Increase
As 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.