Huntington Bancshares Strengthens Net Interest Income Forecast on Rate Outlook (NASDAQ:HBAN)

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Huntington Bench Shares (NASDAQ: HBAN) raised its 2022 guidance for net interest income on Thursday to factor in the expected improvement in interest rates and says it will now meet its medium-term financial targets by the second half of this year.

In addition to loan growth across its businesses in the first quarter of 2022, Huntington (HBAN) “experienced net interest income expansion, deposit growth and demonstrated disciplined expense management. with continued sequential reductions in non-interest expense resulting in record PPNR (pre-forecast net income),” said Chairman, President and Chief Executive Officer Steve Steinour

The bank raises its 2022 forecast for net interest income to include the improving outlook for the yield curve; he now expects the NII, excluding PPP, AAP, to increase in mid-teens from his earlier predictions of high single digits.

The company, however, now expects non-interest revenue for 2022 to be flat in the lower single digits compared to its earlier guidance of lower single digits.

Huntington Bancshares (HBAN) forecasts a net charge rate of around 20 basis points for 2022 compared to its previous forecast of less than 30 basis points.

First quarter adjusted EPS of $0.32 beat consensus of $0.30 and fell $0.36 in the third quarter.

Huntington Stocks (HBAN) are up 0.2% in pre-market commerce.

Total first quarter revenue (fully taxable equivalent) of $1.65 billion was unchanged from the prior quarter and increased 20% from the prior year period.

First-quarter net interest income (FTE) of $1.15 billion increased from $1.14 billion in the prior quarter and $978 million in the year-ago quarter; net interest margin of 2.88% increased from 2.85% in Q4 2021 and fell 3.48% in Q1 2021.

Total adjusted non-interest expense for the first quarter of $1.01 billion fell $1.03 billion in the fourth quarter of 2021 and increased by $772 million in the first quarter of 2021.

Average loans and leases increased to $111.1 billion from $109.5 billion in the fourth quarter; average core deposits of $139.1 billion increased from $138.0 billion in the fourth quarter.

Conference call at 9:00 a.m. ET.

Previously, Huntington Banc shared non-GAAP EPS of $0.32 versus $0.02, revenue of $1.65 billion versus $20 million.