Huntington's Q1 profit rises as Fed rate cuts temper deposit costs
April 17 (Reuters) - Huntington Bancshares (HBAN.O), opens new tab reported a rise in its first-quarter profit on Thursday, helped by higher interest income due to multiple rate cuts by the U.S. Federal Reserve at the end of last year that lowered deposit costs and helped loan growth.
Shares of the bank rose 1.73% in trading before the bell.
recession, prompting the bank to set aside a bigger buffer to cover loans that might not be repaid.
Huntington's provision for credit losses was $115 million, higher than $107 million from a year earlier.
Its net interest income - the difference between what a bank earns as interest on loans and pays out on deposits - jumped to $1.43 billion in the first quarter, compared with $1.29 billion a year earlier.
"Our first-quarter results were highlighted by continued profit growth driven by increased loans and deposits, expanded net interest margin, growth of fee revenues and rigorous expense management," Chairman and CEO Steve Steinour said.
The bank now expects record full-year NII to rise between 5% and 7%, reflecting lower deposit pricing and continued earning asset growth. It had earlier forecast a rise of between 4% and 6% in 2025 interest income.
Its capital markets and advisory fees climbed 20% to $67 million in the quarter ended March 31, while wealth and asset management revenue rose 15% to $101 million.
Net income attributable to the bank rose $527 million, or 34 cents per share, from $419 million, or 26 cents per share, a year earlier.
Huntington's stock has lost nearly 18.4% this year, compared to a drop of 10.3% in the benchmark S&P 500 index (.SPX), opens new tab in the same period.
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