Huntington Bancshares reports record net income
COLUMBUS – Huntington Bancshares Inc. reported 2012 full-year net income of $641 million, an increase of $98.4 million, or 18 percent, from the prior year.
Fourth quarter net income of $167.3 million for 2012 was unchanged from the prior quarter. Earnings per common share for the year and current quarter were 71 cents and 19 cents respectively, up 12 cents and unchanged from the prior periods.
Huntington also announced that the Board of Directors declared a quarterly cash dividend on its common stock of 4 cents per common share. The dividend is payable April 1 to shareholders of record on March 18.
“We are pleased with the year’s financial results, which reflect steady growth in a number of key areas including loans, deposits, and customer relationships as well as improved profitability,” said Stephen D. Steinour, chairman, president and chief executive officer. “This growth has occurred in a challenging economic and regulatory environment.”
The results demonstrate the continued benefits from the successful execution of long-term strategic plan, including the investments made during the previous three years. Those investments added more than $50 million of pre-tax income during 2012 and are expected to grow as those investments mature, Steinour said.
“While some businesses are hesitant to invest in light of the current uncertainty in the economy, we believe our differentiated approach to banking, coupled with investing in our franchise through enhanced products and services, will drive growth and improvement of our long-term profitability,” he said.
Net income for the full year was $641 million, up $98.4 million, or 18 percent, from the prior year. The primary drivers of the increase were a $117.2 million, or 12 percent, increase in noninterest income and an $81.4 million, or 5 percent, increase in net interest income, partially offset by a $107.4 million, or 6 percent, increase in noninterest expense.
Looking to this year, Huntington expects continued seeing growth of the Midwest economy, Steinour said.
“However, business sentiment continues to be negatively influenced by the uncertainty in Washington and its direct impact on the U.S. economy,” he said. “We remain optimistic that when solutions are in place, the strength of the Midwest and the soundness of our strategy will continue to drive growth.”
Net interest income is expected to modestly grow over the course of 2013.
The 2012 Fourth Quarter Performance Discussion contains additional detailed review of this quarter’s performance at www.investquest.com/iq/h/hban/ne/news/index.htm