Huntington Bancshares Sees Profit Soar in Q4
Strong Capital Markets Performance Drives Growth
Huntington Bancshares reported a remarkable 115% increase in its fourth-quarter profit, driven by a robust performance in its capital markets unit and higher interest income. The bank’s strategic expansion into fee-earning businesses has paid off, as companies actively pursued stock and bond sales, as well as deals, resulting in increased fees for lenders.
Fee Income Surges
Capital markets and advisory fees jumped an impressive 74% to $120 million, while wealth and asset management revenue rose 8% to $93 million in the three months ended December 31. This significant growth contributed to the company’s profit of $530 million, or 34 cents per share, exceeding analysts’ expectations of 31 cents.
Outperforming Expectations
Shares of the company rose 1.5% in premarket trading on Friday, as investors responded positively to the news. Huntington’s profit beat analysts’ expectations, driven by its successful diversification strategy.
Global Deal Volumes Expected to Surge
Bankers anticipate global deal volumes to reach a four-year high of over $4 trillion in 2025, driven by U.S. President-elect Donald Trump’s promise of reduced regulation, lower corporate taxes, and a pro-business stance. This trend is expected to benefit Huntington and its peers.
Net Interest Income to Reach Record High
Huntington expects its 2025 net interest income (NII) to grow 4% to 6% to a record high, driven by strong loan growth and continued normalization of deposit costs as the Federal Reserve cuts interest rates further. This outlook is in line with bigger peers Bank of America and JPMorgan Chase, which have also forecast a jump in their 2025 NII.
CEO Comments on Exceptional Results
“We delivered exceptional fourth-quarter results, highlighted by record fee income, accelerated loan growth, and sustained deposit gathering,” said Chairman and CEO Steve Steinour. Huntington’s NII rose 6% to $1.39 billion in the quarter, demonstrating the bank’s ability to drive growth through its diversified business model.
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