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HBAN Nasdaq· Huntington Bancshares, Inc
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HBAN Nasdaq· Huntington Bancshares, Inc
Earnings report Q4 2023

HBAN Sees Robust Revenue Growth Across Segments

Segments of revenue

HBAN's revenue for the year ended December 31, 2023, was primarily driven by its Consumer & Business Banking and Commercial Banking segments. The Consumer & Business Banking segment generated $1.1 billion in revenue from contracts with customers, while the Commercial Banking segment contributed $307 million. The company's major revenue streams included payments and cash management revenue ($536 million), wealth and asset management revenue ($328 million), customer deposit and loan fees ($211 million), capital markets and advisory fees ($132 million), leasing revenue ($51 million), insurance income ($74 million), and other income ($68 million). Additionally, noninterest income within the scope of other GAAP topics amounted to $521 million, bringing the total noninterest income to $1.92 billion.

Strengths

The company's strengths lie in its diversified revenue streams and strong performance across its business segments. The increase in revenue can be attributed to the company's strategic initiatives, including the completion of an organizational realignment during the second quarter of 2023, which consolidated several of its business units into the Consumer & Regional Banking segment.

Challenges

Despite the robust revenue growth, the company faced challenges in the form of increased noninterest expenses, which rose by 8% to $226 million, primarily due to the impact of the TCF acquisition. This was largely driven by higher personnel expenses reflecting an increase in the number of full-time equivalent employees and allocated overhead.

Noteworthy

It's worth noting that the company's net income attributable to Huntington Bancshares Inc increased by 8% to $1.18 billion, indicating a strong bottom-line performance despite the increased expenses.

Summary

In summary, HBAN demonstrated strong revenue growth across its business segments, driven by its diversified revenue streams and strategic initiatives. However, the company needs to manage its noninterest expenses effectively to maximize its profitability. Despite these challenges, the company's strong net income growth indicates a positive financial performance.

Source documents

Form 10-K  filed on Feb 16, 2024
122 pages scanned

Reference data

Company financials Q4 revenue 1.59B
Analyst estimates Q4 EPS beat by 1.26%
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