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Huntington Bancshares Incorporated (NASDAQ:HBAN): There Are Hidden Strengths Here

Boston, MA 11/04/2013 (wallstreetpr) – When the diversified regional bank holding company Huntington Bancshares Incorporated (NASDAQ:HBAN) posted its Q3 data last month, most investors failed to capture how the bank faired against its rivals in the industry. Generally, the multi-state regional bank delivered good results which should please investors, but just how good were they?

Due to the higher mortgage interest rates, all players in the banking sector are taking the heat. This is why it was not surprising that HBAN exited Q3 flat in revenue compared to Q2 and 2% down compared to the Q3.12. Basically, the bank had its mortgage banking income falling by 50% or slightly over $20 million. However, by slashing expenses by 8% or $35 million, the bank was able to recognize a one-time gain on its return on average assets which increased to 1.27% from 1.19% from the Q3 of last year. Besides the year on year strong results in Q3, HBAN also noted significant improvements in its numbers compared to Q2, earning $178.5 million in net income in Q3 against $151 million in Q2.

Considering how the other regional banks faired over the past year in terms of net interest margins, HBAN’s shrink to 3.34% from 3.38% in net income a year ago doesn’t seem like a negative performance though. It was a good show that the company was able to keep things above its regional bank peers. So eventually, the bank recognized growth in its return on common equity. In fact, it led several of its rivals in this regard.

Following the bank’s over $16 million in repurchase program and consistent and sustainable results, HBAN grew its tangible book by 7%, now standing at $6.10 a share. The $7.34 billion capped company traded up Friday, gaining 0.51% on stock price to finish up $8.85 per share. The day’s trading was also higher than the daily average.

Published by Van Bettauer

Van Bettauer is a financial aficionado from Vancouver, British Columbia. He currently studies at UBC, pursuing a Bachelors of Science degree. Van has been freelance writing for many years, specializing in copywriting, report writing and article writing. The combination of his scientific studies and writing experience brings a new and fresh perspective to the financial world. Visit Bettauer's Google+ page at the following address: https://plus.google.com/100770875710593766367/posts

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