Huntington Bancshares (HBAN) has reported a 19.04 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $212.26 million, or $0.18 a share in the quarter, compared with $178.31 million, or $0.21 a share for the same period last year.
Revenue during the quarter surged 35.73 percent to $994.41 million from $732.66 million in the previous year period. Net interest income for the quarter rose 47.91 percent over the prior year period to $734.98 million. Non-interest income for the quarter rose 22.82 percent over the last year period to $334.34 million.
Huntington Bancshares has made provision of $74.91 million for loan losses during the quarter, up 105.40 percent from $36.47 million in the same period last year.
Net interest margin improved 16 basis points to 3.25 percent in the quarter from 3.09 percent in the last year period. Efficiency ratio for the quarter deteriorated to 65.40 percent from 63.70 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"We are very pleased with our strong close to 2016," said Steve Steinour, chairman, president and chief executive officer. "2016 performance demonstrated continued progress toward achieving our long-term financial goals. We delivered positive operating leverage for the fourth consecutive year. We also executed our balance sheet optimization strategy, in which we chose to shrink the balance sheet in order to replenish our capital ratios more quickly. This included the successful completion of a $1.5 billion auto loan securitization within the 2016 fourth quarter, demonstrating strong investor demand for our superior automobile loan production quality."
Assets outpace liabilities growth
Total assets stood at $99,728.98 million as on Dec. 31, 2016, up 40.42 percent compared with $71,018.30 million on Dec. 31, 2015. On the other hand, total liabilities stood at $89,447.54 million as on Dec. 31, 2016, up 38.84 percent from $64,423.70 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $66,323.58 million as on Dec. 31, 2016, up 33.33 percent compared with $49,743.26 million on Dec. 31, 2015. Deposits stood at $75,607.72 million as on Dec. 31, 2016, up 36.74 percent compared with $55,294.98 million on Dec. 31, 2015.
Investments stood at $23,503.07 million as on Dec. 31, 2016, up 56.98 percent or $8,531.04 million from year-ago. Shareholders equity stood at $10,281.45 million as on Dec. 31, 2016, up 55.91 percent or $3,686.84 million from year-ago.
Return on average assets moved down 16 basis points to 0.84 percent in the quarter from 1 percent in the last year period. At the same time, return on average equity decreased 260 basis points to 8.20 percent in the quarter from 10.80 percent in the last year period.
Nonperforming assets moved up 20.55 percent or $81.98 million to $480.90 million on Dec. 31, 2016 from $398.92 million on Dec. 31, 2015.
Tier-1 leverage ratio stood at 8.67 percent for the quarter, down from 8.79 percent for the previous year quarter.
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