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Dec 31, 2020
Huntington Q4 2020 Earnings Report
Reported stable net income, increased revenue, and deposit growth.
Key Takeaways
Huntington Bancshares Incorporated reported Q4 2020 net income of $316 million, consistent with the year-ago quarter. EPS was $0.27, a decrease of 4% year-over-year. Revenue increased by 7%, driven by growth in both net interest income and noninterest income. Average core deposits increased by 16%, reflecting strong growth in demand deposits.
Net income was $316 million, consistent with the year ago quarter.
Earnings per common share (EPS) for the quarter were $0.27, a decrease of $0.01, or 4%.
Fully-taxable equivalent total revenue increased $81 million, or 7%.
Average core deposits increased $12.6 billion, or 16%, including a $12.5 billion, or 31%, increase in total demand deposits.
Huntington
Huntington
Forward Guidance
Huntington expects full-year 2021 revenue to increase approximately 1% to 3%, noninterest expense to increase approximately 3% to 5%, average loans and leases to increase approximately 2% to 4%, and average total deposits to increase approximately 5% to 7%.
Positive Outlook
- Full-year revenue is expected to increase approximately 1% to 3%.
- Average loans and leases are expected to increase approximately 2% to 4% on an annual basis.
- Average total deposits are expected to increase approximately 5% to 7% on an annual basis.
- 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 noninterest expense is expected to increase approximately 3% to 5%.
- Net charge-offs around the middle of the average through-the-cycle target range of approximately 35 to 55 basis points, with some moderate quarterly volatility.
- Changes in general economic, political, or industry conditions
- The magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition
- Uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board