Regional bank holding company Huntington Bancshares Incorporated (NASDAQ: HBAN) reported strong results for the fourth quarter ended December 31, 2021. The robust results were primarily driven by the growth witnessed in total revenues.
However, following the news, HBAN shares reacted in a volatile manner and fell 9% during Friday’s trading session, only to pare its losses by more than 2% to close at $15.49 during the extended trading session.
Revenue & Earnings
Huntington Bancshares reported quarterly revenues of $1.65 billion, which represents a year-over-year growth of 33.4%. A 37% growth witnessed in net interest income to $1.138 billion drove the overall growth in revenues, making up about 68.8% of the total revenues.
Additionally, the non-interest income witnessed a growth of 26% from the prior year, too. The company reported earnings per share (EPS) of $0.36 for the quarter, which surpassed the consensus estimate of $0.33.
Other Operating Metrics
The company reported an efficiency ratio of 73% for the quarter, an improvement from the prior year’s figure of 60.2%. However, the company’s net interest margin deteriorated to 2.84% from 2.94% reported in the previous year.
CEO of Huntington Bancshares, Steve Steinour, said “We delivered in the fourth quarter, finishing the year with record quarterly loan production, reflecting broad-based contributions across all commercial lending categories. Commercial lending should fuel balance sheet growth in the coming year, while areas of strategic focus such as capital markets, cards and payments, and wealth management should bolster fee income.”
On January 23, Wedbush analyst Peter Winter reiterated a Buy rating on the stock with a price target of $18, which implies upside potential of 18.6% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys, 6 Holds and 1 Sell. The average Huntington Bancshares stock price prediction of $18.15 implies the stock has 19.6% upside potential from current levels. Shares have gained about 12.6% over the past year.
Increased Hedge Fund Trading
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in Huntington Bancshares is currently Positive, as some of the top hedge funds that were active in the last quarter increased their cumulative holdings by 187,900 shares.
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