Huntington Bancshares Profit Up 9%

Regional bank Huntington Bancshares Inc. reported a 9% increase in fourth-quarter earnings, helped by an increase in loans and leases.

Like many banks, Columbus, Ohio-based Huntington has had to cope with low interest rates. In the latest quarter, the lender's net interest margin, a measure of lending profitability, fell to 3.09% from 3.18% a year ago.

Following the financial crisis, banks have faced historically low interest rates. In December, the Federal Reserve raised its benchmark rate slightly and signaled it would gradually lift rates as the economy strengthens.

Huntington said Thursday that the Fed's action was an "encouraging sign," but it would still "conservatively budget" for unchanged rates throughout 2016. The bank said its expects full-year revenue growth to be consistent with its long-term goal of 4% to 6% growth a year.

For the fourth quarter, Huntington reported a profit of $178.3 million, or 21 cents a share, up from $163.6 million, or 19 cents a share. Revenue grew 8.9% to $777.6 million.

Analysts polled by Thomson Reuters projected 21 cents in per-share earnings and $761.2 million in revenue.

Lending and deposits increased. Automobile and commercial loans helped drive a 5.7% increase in total loans. Deposits rose 8.9%.

Increases in card-processing and mortgage-banking revenue helped drive fee-based income up 17%.

Noninterest expenses grew 3% from a year prior on increases in personnel costs and outside data-processing services.

Shares in the lender, down about 13% over the past three months, fell 4.3% in early trading.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

January 21, 2016 10:15 ET (15:15 GMT)

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