Huntington's Q1 profit rises as Fed rate cuts temper deposit costs

Reuters

Thu, Apr 17, 2025, 5:43 AM 2 min read

(Reuters) - Huntington Bancshares reported a emergence successful its first-quarter nett connected Thursday, helped by higher involvement income owed to aggregate complaint cuts by the U.S. Federal Reserve astatine the extremity of past twelvemonth that lowered deposit costs and helped indebtedness growth.

Shares of the slope roseate 1.73% successful trading earlier the bell.

U.S. President Donald Trump's commercialized policies person sparked concerns astir rising ostentation and a imaginable recession, prompting the slope to acceptable speech a bigger buffer to screen loans that mightiness not beryllium repaid.

Huntington's proviso for recognition losses was $115 million, higher than $107 cardinal from a twelvemonth earlier.

Its nett involvement income - the quality betwixt what a slope earns arsenic involvement connected loans and pays retired connected deposits - jumped to $1.43 cardinal successful the archetypal quarter, compared with $1.29 cardinal a twelvemonth earlier.

"Our first-quarter results were highlighted by continued nett maturation driven by accrued loans and deposits, expanded nett involvement margin, maturation of interest revenues and rigorous disbursal management," Chairman and CEO Steve Steinour said.

The slope present expects grounds full-year NII to emergence betwixt 5% and 7%, reflecting little deposit pricing and continued earning plus growth. It had earlier forecast a emergence of betwixt 4% and 6% successful 2025 involvement income.

Its superior markets and advisory fees climbed 20% to $67 cardinal successful the 4th ended March 31, portion wealthiness and plus absorption gross roseate 15% to $101 million.

Net income attributable to the slope roseate $527 million, oregon 34 cents per share, from $419 million, oregon 26 cents per share, a twelvemonth earlier.

Huntington's banal has mislaid astir 18.4% this year, compared to a driblet of 10.3% successful the benchmark S&P 500 scale successful the aforesaid period.

(Reporting by Prakhar Srivastava successful Bengaluru; Editing by Pooja Desai)