-=Huntington Banc (HBAN) reported earnings on Tue 23 Oct 2018 (b/o)

Huntington Banc beats by $0.01, reports revs in-line

• Reports Q3 (Sep) earnings of $0.33 per share, $0.01 better than the S&P Capital IQ Consensus of $0.32; revenues rose 4.6% year/year to $1.15 bln vs the $1.15 bln S&P Capital IQ Consensus.
  • Net interest margin of 3.32%, up 3 basis points from the year-ago quarter
  • Common Equity Tier 1 (CET1) risk-based capital ratio of 9.89%, down from 9.94% a year ago and within our 9% to 10% operating guideline
• Expectations - 2018
  • Full-year revenues are expected to increase approximately 4.0% to 4.5%. During the 2018 fourth quarter, the company expects to realize approximately $20 million of securities losses related to portfolio restructuring. Full-year noninterest expense is expected to decrease approximately 2.0% to 2.5%.
    • During the 2018 fourth quarter, the company expects to realize approximately $40 million of expense due to the previously announced branch and corporate facility consolidations. The full-year NIM is expected to expand 2-4 basis points, as core NIM expansion more than offsets the anticipated reduction in the benefit of purchase accounting. The 2018 efficiency ratio is expected to approximate 56.5% to 57.0%.
  • Average loans and leases are expected to increase approximately 5.5% to 6.5% on an annual basis. Average total deposits are expected to increase approximately 3.5% to 4.5%, while average core deposits are expected to increase 4.5% to 5.5%.
  • Asset quality metrics are expected to remain better than our average through-the-cycle target ranges, with some moderate quarterly volatility.