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Higher NII & Fee Income to Aid Huntington Bancshares' Q2 Earnings
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Key Takeaways
HBAN's Q2 earnings are expected to show a 13.3% year-over-year increase to 34 cents per share.
Net interest income is likely to rise 3% sequentially to $1.5B, supported by steady loan demand and rates.
Total non-interest income is likely to decline 5.4%, with rising expenses and credit loss reserves in focus.
Huntington Bancshares Incorporated (HBAN - Free Report) is slated to report second-quarter 2025 results on July 18, before the opening bell. The company’s quarterly revenues and earnings are expected to have increased year over year.
In the last reported quarter, the bank recorded an earnings surprise of 9.7%. Results reflected improvements in fee income and net interest income (NII). However, an increase in non-interest expenses was a headwind.
HBAN has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 9.13%.
Huntington Bancshares Incorporated Price and EPS Surprise
Per the company’s preliminary results for the second quarter, its earnings were 34 cents per share, stable with the prior quarter, reflecting an impact of 4 cents from securities repositioning. The Zacks Consensus Estimate for Huntington Bancshares’ second-quarter earnings of 34 cents per share has declined 2.9% in the past seven days. The figure indicates a 13.3% rise from the year-ago reported number.
Preliminary results indicate revenues to be $1.95 billion for the quarter. The consensus estimate for revenues is pegged at $1.99 billion, indicating a year-over-year rise of 9.6%.
Now, let us discuss the factors that might have influenced Huntington Bancshares’ second-quarter performance.
Key Factors & Estimates for HBAN’s Q2 Performance
Loans & NII: In the second quarter, the Federal Reserve kept interest rates unchanged at 4.25-4.5%. As such, HBAN’s NII is likely to have witnessed decent growth, given the relatively higher rates.
This is reinforced by the preliminary results, which reflect NII to be $1.5 billion, up 3% from the prior quarter. The Zacks Consensus Estimate aligns with this, suggesting a 2.7% sequential increase in NII to $1.46 billion.
Per the Fed’s latest data, the demand for commercial and industrial loans was strong while consumer loans held steady in the second quarter. This is expected to have supported Huntington Bancshares’ average interest-earning asset growth in the second quarter. The Zacks Consensus Estimate for average total earnings assets of $191.1 billion for the quarter under review indicates a 1.5% rise from the prior quarter’s reported level.
Non-Interest Income: Despite interest rate cuts by the central bank in 2024, mortgage rates did not come down significantly. The second quarter saw rates fluctuate, but they remained in the mid-to-upper 6% range. As such, refinancing activities and origination volumes were decent. This is expected to have supported HBAN’s mortgage revenue growth in the quarter to be reported.
The Zacks Consensus Estimate for mortgage banking income is pegged at $34 million, suggesting a 9.5% rise from the prior quarter's reported figure.
Global mergers and acquisitions (M&As) in the second quarter of 2025 were impressive than previously expected. Markets plunged in early April after Trump announced sweeping tariffs, rattling business confidence. But as trade demands eased and policy direction became clearer, deal-making activities resumed in the last month of the quarter.
Consequently, the company’s capital markets and advisory fees are expected to have risen in the second quarter.
The Zacks Consensus Estimate for capital markets and advisory fees is pegged at $76.2 million, indicating a 13.7% rise on a sequential basis.
The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $103.6 million, indicating a 2.6% rise from the prior quarter’s reported figure.
The consensus estimate for customer deposit and loan fees for the second quarter is pegged at $88.6 million, indicating a 3% sequential rise.
The consensus mark for insurance income of $21 million implies a 4.7% rise from the quarter-ago reported figure.
The consensus mark for total non-interest income is pegged at $520.6 million, indicating a 5.4% decline from the prior quarter’s reported level.
Expenses: Huntington Bancshares’ higher expenses from outside data processing and other services, and deposit and marketing expenses are anticipated to have raised its costs in the second quarter. Also, the bank’s efforts to expand its commercial banking capabilities in high-growth markets by adding more branches and hiring professionals are expected to have increased expenses.
Though efficiency initiatives are likely to have reduced expenses to some extent, long-term investments in key growth initiatives are expected to have kept the company’s expense base higher.
Asset Quality: HBAN is likely to have set aside a substantial amount of money for potential delinquent loans, given the expectations of an economic slowdown and tariff-related uncertainty.
Preliminary results indicate a $37 million increase in the allowance for credit losses during the quarter, taking it to $2.5 billion.
The Zacks Consensus Estimate for total non-accrual loans of $774 million indicates a 3.5% increase from the prior quarter's reported figure.
What Does Our Model Unveil for HBAN?
Per our proven model, the chances of Huntington Bancshares beating estimates this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Huntington Bancshares has an Earnings ESP of -2.42%.
Here are some bank stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Earnings ESP for First Horizon Corporation (FHN - Free Report) is +0.20% and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2025 results on July 16.
Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has been unchanged at 41 cents. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Truist Financial (TFC - Free Report) is scheduled to announce second-quarter 2025 results on July 18. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.97%.
Quarterly earnings estimates for TFC have been revised 1.1% lower to 92 cents over the past week.
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Higher NII & Fee Income to Aid Huntington Bancshares' Q2 Earnings
Key Takeaways
Huntington Bancshares Incorporated (HBAN - Free Report) is slated to report second-quarter 2025 results on July 18, before the opening bell. The company’s quarterly revenues and earnings are expected to have increased year over year.
In the last reported quarter, the bank recorded an earnings surprise of 9.7%. Results reflected improvements in fee income and net interest income (NII). However, an increase in non-interest expenses was a headwind.
HBAN has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 9.13%.
Huntington Bancshares Incorporated Price and EPS Surprise
Huntington Bancshares Incorporated price-eps-surprise | Huntington Bancshares Incorporated Quote
Per the company’s preliminary results for the second quarter, its earnings were 34 cents per share, stable with the prior quarter, reflecting an impact of 4 cents from securities repositioning. The Zacks Consensus Estimate for Huntington Bancshares’ second-quarter earnings of 34 cents per share has declined 2.9% in the past seven days. The figure indicates a 13.3% rise from the year-ago reported number.
Preliminary results indicate revenues to be $1.95 billion for the quarter. The consensus estimate for revenues is pegged at $1.99 billion, indicating a year-over-year rise of 9.6%.
Now, let us discuss the factors that might have influenced Huntington Bancshares’ second-quarter performance.
Key Factors & Estimates for HBAN’s Q2 Performance
Loans & NII: In the second quarter, the Federal Reserve kept interest rates unchanged at 4.25-4.5%. As such, HBAN’s NII is likely to have witnessed decent growth, given the relatively higher rates.
This is reinforced by the preliminary results, which reflect NII to be $1.5 billion, up 3% from the prior quarter. The Zacks Consensus Estimate aligns with this, suggesting a 2.7% sequential increase in NII to $1.46 billion.
Per the Fed’s latest data, the demand for commercial and industrial loans was strong while consumer loans held steady in the second quarter. This is expected to have supported Huntington Bancshares’ average interest-earning asset growth in the second quarter. The Zacks Consensus Estimate for average total earnings assets of $191.1 billion for the quarter under review indicates a 1.5% rise from the prior quarter’s reported level.
Non-Interest Income: Despite interest rate cuts by the central bank in 2024, mortgage rates did not come down significantly. The second quarter saw rates fluctuate, but they remained in the mid-to-upper 6% range. As such, refinancing activities and origination volumes were decent. This is expected to have supported HBAN’s mortgage revenue growth in the quarter to be reported.
The Zacks Consensus Estimate for mortgage banking income is pegged at $34 million, suggesting a 9.5% rise from the prior quarter's reported figure.
Global mergers and acquisitions (M&As) in the second quarter of 2025 were impressive than previously expected. Markets plunged in early April after Trump announced sweeping tariffs, rattling business confidence. But as trade demands eased and policy direction became clearer, deal-making activities resumed in the last month of the quarter.
Consequently, the company’s capital markets and advisory fees are expected to have risen in the second quarter.
The Zacks Consensus Estimate for capital markets and advisory fees is pegged at $76.2 million, indicating a 13.7% rise on a sequential basis.
The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $103.6 million, indicating a 2.6% rise from the prior quarter’s reported figure.
The consensus estimate for customer deposit and loan fees for the second quarter is pegged at $88.6 million, indicating a 3% sequential rise.
The consensus mark for insurance income of $21 million implies a 4.7% rise from the quarter-ago reported figure.
The consensus mark for total non-interest income is pegged at $520.6 million, indicating a 5.4% decline from the prior quarter’s reported level.
Expenses: Huntington Bancshares’ higher expenses from outside data processing and other services, and deposit and marketing expenses are anticipated to have raised its costs in the second quarter. Also, the bank’s efforts to expand its commercial banking capabilities in high-growth markets by adding more branches and hiring professionals are expected to have increased expenses.
Though efficiency initiatives are likely to have reduced expenses to some extent, long-term investments in key growth initiatives are expected to have kept the company’s expense base higher.
Asset Quality: HBAN is likely to have set aside a substantial amount of money for potential delinquent loans, given the expectations of an economic slowdown and tariff-related uncertainty.
Preliminary results indicate a $37 million increase in the allowance for credit losses during the quarter, taking it to $2.5 billion.
The Zacks Consensus Estimate for total non-accrual loans of $774 million indicates a 3.5% increase from the prior quarter's reported figure.
What Does Our Model Unveil for HBAN?
Per our proven model, the chances of Huntington Bancshares beating estimates this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Huntington Bancshares has an Earnings ESP of -2.42%.
Zacks Rank: HBAN currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are some bank stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Earnings ESP for First Horizon Corporation (FHN - Free Report) is +0.20% and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2025 results on July 16.
Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has been unchanged at 41 cents. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Truist Financial (TFC - Free Report) is scheduled to announce second-quarter 2025 results on July 18. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.97%.
Quarterly earnings estimates for TFC have been revised 1.1% lower to 92 cents over the past week.