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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.