Boston, MA 01/17/2013 (wallstreetpr) – Huntington Bancshares Incorporated (NASDAQ:HBAN) becomes the latest big regional financial institution to report Q4 results. As it has emerged, the company resulted mixed figures for the quarter but succeeded in providing optimism for the future.
The bank posted profit of $157.8 million or $0.18 per share, thus topping $0.17 predicted by analysts. However, this column dropped compared to a year ago when the company earned $167.3 million or $0.19 per share. Revenue for the just reported quarter was down 7 percent against what was reported a year ago during the same period. However, the latest revenue also succeeded in beating what analysts had expected which was $685.5 million against $681 million.
As percentages, earnings fell 5.7 percent year-over-year as revenue declined 7 percent year-on-year.
Although the latest Q4 results look weaker than what the bank reported in 2012, investors are wise to note that a lot of adjustments have been effected which should lead to better performance in future. For example, Huntington Bancshares Incorporated (NASDAQ:HBAN) wrote off fewer bad loans in the just reported quarter, a trend that looks ripe to be continued in the future.
In the quarter, the bank also noted increased transaction in its loan portfolio which is also expected to continue in the future.
As the case with other regional banks such as Regions Financial (RF), Huntington Bancshares Incorporated (NASDAQ:HBAN)’s revenue remained under pressure due to the low interest rate condition. As a result, profit margins are compressed. The tepid borrowing condition is also hurting the bank’s performance. However, the situation is expected to improve in future.
Huntington Bancshares Incorporated (NASDAQ:HBAN) has struck an acquisition deal to buy Camco Financial Corp (CAFI), a community bank operating 22 branches in eastern and sourthern Ohio. The transaction is valued at $97 million and it is expected to translate into improved revenue for HBAN will be expanding presence in existing markets.
As mentioned earlier, Huntington Bancshares Incorporated (NASDAQ:HBAN) is looking to a brighter future because of its solid fundamentals. These fundamentals can be seen in increasing commercial loans in areas such as mortgage, auto and home equity.