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$HBAN 2Q15 Call: Customer activity remains encouraging, loan utilization rates showed slight increase in 2Q15 giving additional reason for optimism. While competition remains intense, we will continue to be disciplined in growing Commercial Real Estate, & CNI portfolios. Committed to deliver strong results regardless of interest rate environment.
$HBAN reported a massive 81% jump in 4Q17 earnings to $432MM, or $0.37 per share. The profits were boosted by approx $123MM of federal tax reform-related tax benefit. Excluding the one-off items, earnings stood at $0.26 per share. Total revenue for the quarter increased 4% YoY to $1.12Bil.
$HBAN said Auto Finance Group and Commercial Real Estate executive Nick Stanutz intends to retire effective at end of the year following 31 years of service in various roles of increasing leadership. Each of his teams will be led by their current leaders, who as of Jan. 1, 2018, will report to different members of $HBAN's executive leadership team.
$HBAN said the acquisition of Akron-based FirstMerit accelerated its ability to achieve strong results during 2Q17. The company remains on track to deliver targeted $255MM in annual cost savings from the acquisition. The company believes all the remaining cost savings will be completed by 3Q17.
$HBAN still projects FY17 revenue growth in excess of 20%, as it expects economic activity to modestly improve during 2H17. The firm's average balance sheet growth, driven largely by the FirstMerit acquisition, is expected to be in excess of 20%, with loan growth of 4-6% for the year.
Earnings of $HBAN more than doubled in 2Q17 on a 47% rise in net interest income (NII). The Columbus, Ohio-based bank reported earnings applicable to common shares of $253MM, or $0.23 per share, an increase of 63% YoY. Excluding certain items, earnings were $0.26 a share. The company posted NII of $756MM, with revenue growing 37% to $1.08Bil.
$HBAN received no objection from the Federal Reserve for proposed capital actions. The actions include a 38% increase in quarterly dividend to $0.11 per common share, starting in 4Q17, and repurchase of up to $308MM of common stock over the next four quarters from July 1, 2017 through June 30, 2018.
$HBAN's average total deposits for 1Q17 increased $21Bil, or 38%, from the year-ago quarter, while average total core deposits increased $20.1Bil, or 39% YoY. Reported noninterest income for the quarter increased $71MM, or 29%, from the year-ago quarter, primarily reflecting the impact of the FirstMerit acquisition.
$HBAN expects FY17 revenue growth to be in excess of 20%, while avg. balance sheet growth, driven largely by the FirstMerit acquisition, is expected to be in excess of 20%. On a period-end basis, $HBAN expects loan growth of 4-6%. Overall, asset quality metrics are expected to remain near current levels.
Bank holding company $HBAN posted an increase in 1Q17 earnings, helped by higher net interest income. Net income increased 21.41% to $208MM from $171.31MM a year ago. However, diluted EPS fell 15% to $0.17 per share from $0.20 per share a year earlier. Net interest income increased 45.1% to $730MM.