Huntington Q1 Earnings & Revenues Beat on Higher NII & Fee Income

Huntington Bancshares Incorporated HBAN reported first-quarter 2025 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 26 cents.

Results have reflected improvements in fee income, net interest income (NII), and average loan and deposit balances. However, an increase in non-interest expenses was a headwind.

The company reported a net income attributable to common shareholders (GAAP basis) of $527 million in the quarter, which increased from $419 million reported in the prior-year quarter.

HBAN’s Revenues Increase, Expenses Fall

Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 9.5% year over year to $1.94 billion in the first quarter. The top line surpassed the Zacks Consensus Estimate of $1.9 billion.

NII (FTE basis) was $1.44 billion, up 10.8% from the prior-year quarter’s tally. The increase was primarily due to a rise in average earning assets and net interest margin (NIM), partially offset by an increase in average interest-bearing liabilities. NIM jumped 9 basis points to 3.10% in the reported quarter.

Non-interest income moved up 5.8% year over year to $494 million. The upside was driven by a rise in almost all the components of non-interest income except leasing revenue and other non-interest income.

Non-interest expenses were up 1.3% year over year to $1.15 billion. The rise was mainly due to an increase in personnel costs, outside data processing and other services costs, net occupancy expenses, and marketing costs.

The efficiency ratio was 58.9%, down from the year-ago quarter’s 63.7%. A fall in the efficiency ratio indicates an increase in profitability.

HBAN’s Loans and Deposits Increase

As of March 31, 2025, average loans and leases at Huntington inched up nearly 2.1% sequentially to $130.86 billion. Average total deposits increased 1.4% to $161.6 billion.

HBAN’s Credit Quality: Mixed Bag

Net charge-offs were $86 million, down from $92 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased 2.6% to $2.48 billion from the prior-year quarter. Total non-performing assets were $804 million as of March 31, 2025, up 8.9% from the prior-year quarter.

Net charge-offs/Average total loans and leases were 0.26%, down from 0.30% in the prior-year quarter.

In the first quarter, the company recorded a provision for credit losses of $115 million, which increased 7.5% from the year-ago quarter.

HBAN’s Capital Ratios: Mixed Bag

The common equity tier 1 risk-based capital ratio was 10.6% in the first 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 2024.

The tangible common equity to tangible assets ratio in the first quarter was 6.3%, which increased from 6.0% year-ago quarter.

Our View on HBAN

Huntington’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 Quote

Currently, Huntington carries a Zacks Rank #3 (Hold).

Earnings Dates & Expectations of Bank Stocks

Wintrust Financial Corporation WTFC is scheduled to release first-quarter 2025 earnings on April 21. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WTFC’s quarterly earnings has remained unchanged at $2.52 per share over the past two months.

Associated Bancorp ASB is scheduled to release first-quarter 2025 earnings on April 24. The company carries a Zacks Rank #3 at present. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for ASB’s quarterly earnings has moved upward to 57 cents per share over the past month.

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This article originally published on Zacks Investment Research (zacks.com).

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