Huntington Bancshares Incorporated (NASDAQ:HBAN): banks on its strategy for recovery
On Thursday, Huntington Bancshares Incorporated (NASDAQ:HBAN) said that its Q2 profits dropped by 1%. In the meantime, this quarter also brought in an increased dividend for shareholders. There was a rise from 4 cents to 5 cents/share. Profits stood at $150.7M which was a dip of $2.1M from the Q2 of 2012. The share profits stayed steady at 17 cents.
Strategy bears fruit
The bank chairman and CEO, Stephen D. Steinour said that they had had a good quarter. This demonstrated progress in the banks strategic priorities. He also said they had managed to get out of the recession rut and had returned to normal, pre-recession credit levels. Another important point was that they had managed to reach this point way ahead of their expectations and that this was in indication that their prudent and disciplined approach had been effective. There has been no significant change in revenue. This was because strategic growth tackled various environmental headwinds as well as the previous quarter’s gains related to Low Income Housing Tax Credit.
Recession a forgotten story
In the same quarter in 2012, there has been an increase in deposits and lending as consumer confidence in the recovery is on the rise. The bank’s commercial pipeline also continues to gain strength as business owners have now been noticing new signs of economic growth. The Employment right across the Midwest markets has also continued to improve and in May, Ohio has created the biggest month-to-month increase in employment, in the country. Michigan stood at third place.
Expenses had been higher than what the bank has expected and revenue had plateaued. On the brighter side, Huntington Bancshares Incorporated (NASDAQ:HBAN) saw a major rise in households doing business with them. Steinour stated that almost half of their consumers use a minimum of six products. Apart from this the bank also said that its board of directors had approved that Huntington’s bank pension plan be curtailed w.e.f 31 December.