Huntington Bancshares Reports Mixed Q3 2024 Results, Net Income Down 5% Year-Over-Year

Huntington Bancshares Incorporated reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For Q3 2024, net income attributable to Huntington was $517 million, a decrease from $547 million in Q3 2023. The diluted earnings per share also fell to $0.33 from $0.35 year-over-year.

Total revenue for Q3 2024 included net interest income of $1.4 billion, down $17 million or 1% from the same quarter in 2023. This decline was attributed to a 22 basis point decrease in the fully taxable equivalent net interest margin (NIM) to 2.98%, alongside an 11% increase in average interest-bearing liabilities. Noninterest income, however, increased by $14 million or 3% to $523 million, driven by higher capital markets and advisory fees, as well as increased wealth management revenue.

For the first nine months of 2024, total net income was $1.410 billion, down from $1.708 billion in the same period of 2023. Net interest income for this period decreased by $173 million or 4%, reflecting a 24 basis point decline in NIM to 3.00%. Noninterest income for the nine-month period also saw a slight decrease of $35 million or 2% compared to the previous year.

Huntington's total assets increased to $200.5 billion as of September 30, 2024, up $11.2 billion or 6% from December 31, 2023. Total liabilities also rose by 6% to $179.9 billion. The company’s tangible common equity to tangible assets ratio improved to 6.4% from 6.1% at the end of 2023, while the common equity tier 1 (CET1) risk-based capital ratio increased to 10.4% from 10.2%.

The provision for credit losses for Q3 2024 was $106 million, an increase of $7 million or 7% from the prior year, reflecting a cautious approach amid rising unemployment rates, which increased from 3.4% to 4.1% during the quarter. The allowance for credit losses remained stable at $2.4 billion, representing 1.93% of total loans and leases.

Strategically, Huntington has focused on enhancing its risk management framework and has updated its noninterest income categories to align with business management strategies. The company also reported an increase in personnel costs due to higher salaries and benefits, contributing to a 4% rise in noninterest expenses for Q3 2024 compared to the previous year.

Overall, Huntington Bancshares continues to navigate a challenging economic environment while maintaining a focus on growth and risk management.