Huntington Bancshares Reports Profit Growth on Improved Net Interest Margin
January 25 2017 - 08:39AM
Dow Jones News
By Joshua Jamerson
Regional bank Huntington Bancshares Inc. reported a 19% increase
in quarterly profit, helped by an increase in loans and leases as a
key measure of lending profitability improved.
Like many banks, Columbus, Ohio-based Huntington has had to cope
with low interest rates, though for the past two years the Federal
Reserve has raised rates in December.
In the latest quarter, Huntington Bancshares's net interest
margin, a metric reflecting how much a bank earns from the
difference between what it pays on deposits and what it takes in on
loans and investments, rose to 3.25% from 3.18% in the prior
quarter and 3.09% a year ago. For many banks, the gauge has been
pressured by low interest rates.
For the fourth quarter, Huntington reported net income of $212
million, up from $178 million. On a per-share basis, the company
earned 18 cents, down from 21 cents a year ago when the firm had a
lower outstanding share count.
On an adjusted basis, the company earned 24 cents a share;
analysts polled by Thomson Reuters projected 22 cents a share.
The company reported average loans and leases rose 33% to 16.6
billion, propelled by a 37% increase in commercial and industrial
loans and a 17% increase in automobile loans.
Shares in the lender, up about 30% over the past three months,
were inactive premarket.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 25, 2017 08:24 ET (13:24 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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