Huntington Q4 Earnings & Revenues Beat on Higher NII & Fee Income

Core Viewpoint - Huntington Bancshares Incorporated (HBAN) reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of 34 cents, exceeding the Zacks Consensus Estimate of 31 cents, and showing significant improvement from 15 cents in the prior-year quarter [1][2]. Financial Performance - For 2024, adjusted EPS was $1.23, beating the Zacks Consensus Estimate of$1.22, and up from $1.11 in the previous year [2]. - The company reported a net income attributable to common shareholders of$530 million for the quarter, a substantial increase from $243 million in the prior-year quarter [3]. - Total quarterly revenues increased 13.6$1.97 billion, surpassing the Zacks Consensus Estimate of $1.9 billion [4]. - Full-year revenues totaled$7.43 billion, showing a slight year-over-year increase and beating the Zacks Consensus Estimate of $7.37 billion [4]. Income and Expenses - Net interest income (NII) on a fully taxable-equivalent (FTE) basis was$1.4 billion, up 6.2% from the prior-year quarter, driven by a rise in average earning assets [5]. - Non-interest income rose 38% year over year to $559 million, supported by increases in various revenue streams including payments, cash management, and mortgage banking [6]. - Non-interest expenses decreased by 12.6$1.18 billion, primarily due to reductions in several expense categories [7]. Loans and Deposits - As of December 31, 2024, average loans and leases increased nearly 2.9% sequentially to $128.2 billion, while average total deposits rose 1.9$159.4 billion [8]. Credit Quality - Net charge-offs were $97 million, slightly up from$94 million in the prior-year quarter, with the allowance for credit losses increasing 1.9% to $2.45 billion [9]. - Total non-performing assets reached$822 million, up 15.6% from the prior-year quarter [9]. - The provision for credit losses was recorded at $107 million, down 15.1% from the year-ago quarter [10]. Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.5%, up from 10.2% in the year-ago period [11]. - The regulatory Tier 1 risk-based capital ratio was 11.9%, down from 12% in the comparable period in 2023 [11]. - The tangible common equity to tangible assets ratio remained flat at 6.1% [11]. Strategic Outlook - The company's inorganic expansion strategies are expected to enhance revenue growth in the near term, while efforts to expand commercial banking capabilities will support long-term financial performance [12].