NASDAQ$HBAN

Huntington Bancshares Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported solid third-quarter results with revenue growth and average loan and core deposit growth.

Huntington Bancshares Incorporated reported a net income of $303 million for the third quarter of 2020, a 19% decrease from the year-ago quarter. Despite a challenging economic environment, the company achieved 5% revenue growth, 7% average loan growth, and 14% average core deposit growth.

  • Total revenue increased by 5% compared to the third quarter of 2019.
  • Average loans and leases grew by 7%, including a 12% increase in commercial loans.
  • Average core deposits increased by 14%, driven by a 29% increase in average demand deposits.
  • Net income for the quarter was $303 million, a 19% decrease from the previous year.

Headline financials

Total Revenue

$1.25B

Previous: $1.19B+5.0%
EPS (adj)

$0.27

Previous: $0.34-20.6%
Net interest margin

3.0%

No prior period
Efficiency ratio

56.1%

No prior period
Capital Expenditures

-$82M

Previous: -$82M+0.0%
Free Cash Flow

$221M

Previous: $290M-23.8%
Net Income

$303M

Previous: $372M-18.5%
Operating Income

$792M

Previous: $518M+52.9%
Gross Profit

$1.25B

Previous: $1.19B+5.0%
Cash & Equivalents

$1.14B

Previous: $1.64B-30.4%
Total Assets

$120B

Previous: $109B+10.5%
Stock-Based Comp

$20M

Previous: $16M+25.0%

Revenue & EPS history

Huntington · Revenue · Quarterly

$1.25B

Q3 2020+5%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Huntington Bancshares provided full year 2020 expectations, including revenue, noninterest expense, average loans and leases, average total deposits, and net charge-offs.

Tailwinds

  • Full year 2020 revenue is expected to increase approximately 3.0% to 3.5% from the prior year.
  • Full year 2020 noninterest expense is expected to increase approximately 2.0% to 2.5% year-over-year.
  • Average loans and leases are expected to increase approximately 6% year-over-year.
  • Average total deposits are expected to increase approximately 10% compared to full year 2019.

Headwinds

  • Asset quality metrics are expected to continue to be impacted by COVID-19 and other broader economic conditions.
  • Full year results have been impacted by the oil & gas portfolio.
  • Net charge-offs are expected to be approximately 50 to 55 basis points for the full year 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.5%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+12.5%

Q3 2022

Best reaction

-9.1%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.6%-5.5%
Q4 2025-5.8%-1.6%-5.5%
Q3 2025+1.0%+3.3%+2.3%
Q2 2025+0.5%-0.6%+6.3%
Q1 2025+3.0%+5.0%+21.9%
Q4 2024+1.5%+0.1%-0.7%
Q3 2024-3.0%-1.9%+11.7%
Q2 2024+5.0%+4.3%-2.8%
Q1 2024+2.7%+4.4%+7.8%
Q4 2023+5.6%+6.9%+5.1%
Q3 2023-4.6%-5.6%+10.5%
Q2 2023+2.1%+2.6%-6.1%
Q1 2023-3.4%-7.6%-14.1%
Q4 2022+5.1%+5.2%+9.8%
Q3 2022+12.5%+13.0%+12.8%
Q2 2022+0.5%-0.6%+8.6%
Q1 2022-3.4%-4.7%-8.6%
Q4 2021-6.2%-7.5%-5.0%
Q3 2021-1.4%-1.0%-3.8%
Q2 2021+0.6%+3.3%+11.9%
Q1 2021-3.9%-1.9%+1.5%
Q4 2020-7.1%-8.5%+5.4%
Q3 2020+8.0%+2.6%+21.3%
Q2 2020+4.0%-1.1%-1.3%
Q1 2020+1.5%+13.7%+0.7%
Q4 2019-6.9%-7.7%-5.6%
Q3 2019+0.1%-0.1%+2.7%
Q2 2019+1.9%+0.7%-13.2%
Q1 2019+0.0%+1.3%-3.9%
Q4 2018-0.1%+0.0%+5.7%
Q3 2018-3.7%-0.4%+5.6%
Q2 2018+0.1%+1.3%+6.0%
Q1 2018+0.3%+0.9%+0.9%
Q4 2017+0.5%+1.1%-1.9%
Q3 2017-2.1%-3.1%-5.3%
Q2 2017-2.7%-2.8%-6.6%
Q1 2017-0.6%+1.5%-1.8%
Q4 2016+5.7%+2.8%+7.0%
Q3 2016+5.5%+4.0%+23.3%
Q2 2016+0.4%+1.8%+2.9%
Q1 2016+1.1%
Q4 2015-1.2%
Q3 2015+4.8%
Q2 2015+1.4%
Q1 2015-2.1%
Q4 2014+2.9%
Q3 2014-0.8%
Q2 2014+4.7%
Q1 2014-2.7%
Q4 2013-2.7%
Q3 2013+3.5%
Q2 2013+1.7%
Q1 2013-5.0%
Q4 2012+4.2%
Q3 2012-8.5%
Q2 2012-4.1%
Q1 2012+1.6%
Q4 2008+1.3%
Q4 2011+1.3%
Q3 2011-9.1%
Q2 2011-3.0%
Q1 2011-1.2%
Q1 2010-1.2%
Q2 2009-6.7%
Q4 2010-6.7%
Q3 2010-1.1%
Q3 2009-1.1%
Q4 2009-2.1%
Q2 2010-2.1%

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