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Mar 31, 2021
Huntington Q1 2021 Earnings Report
Huntington Bancshares reported strong first-quarter earnings with significant revenue and deposit growth.
Key Takeaways
Huntington Bancshares Incorporated reported a substantial increase in net income for the first quarter of 2021, with significant growth in revenue, average loans, and core deposits. The company's earnings per share also saw a notable increase, and key financial metrics such as return on average assets and tangible book value per share improved.
Net income increased significantly to $532 million, up from $48 million in the year-ago quarter.
Earnings per share rose to $0.48, a $0.45 increase compared to the previous year.
Total revenue increased by 19%, driven by growth in both net interest income and noninterest income.
Average core deposits grew by 20%, reflecting strong customer inflows and increased liquidity.
Forward Guidance
Huntington Bancshares provided full year 2021 expectations, anticipating revenue and deposit growth, strong asset quality, and a specific effective tax rate.
Positive Outlook
- Full year 2021 revenue is expected to increase approximately 3% to 5% from the prior year.
- Average loans and leases are expected to increase approximately 1% to 3% year-over-year.
- Average total deposits are expected to increase approximately 9% to 11% compared to full year 2020.
- Asset quality metrics are expected to remain strong.
- The effective tax rate for full year 2021 is expected to be in the range of 16% to 17%.
Challenges Ahead
- Full year 2021 noninterest expense is expected to increase approximately 7% to 9% year-over-year.
- Net charge-offs in a range of approximately 30 to 40 basis points, with some moderate quarterly volatility.
- Uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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