Tags: Huntington | Bancshares | glass | HBAN

Huntington Bancshares Glass Seen As Half-Full

By    |   Thursday, 09 Aug 2012 06:44 PM

Huntington Bancshares (HBAN) management sees the Midwest, the focus of its operations, recovering slightly ahead of the country as a whole. Nevertheless, it cautioned investors recently that the economy seemed to be slowing. Analysts, however, see the glass half-full for the commercial bank.

Huntington Bancshares is a multi-state diversified regional bank holding company headquartered in Columbus, Ohio. It provides full-service commercial, small business, consumer banking services, mortgage banking services, automobile financing, equipment leasing, investment management, trust services, brokerage services, customized insurance programs, and other financial products and services.

At Dec. 31, 2011, the Bank had 652 branches in Ohio, Michigan, Pennsylvania, Indiana, West Virginia and Kentucky, the majority (376) in Ohio.

“For 2012, we continue to anticipate positive operating leverage and modest improvement in our expense efficiency ratio. This will likely reflect more the benefit of revenue growth, as expenses could increase slightly,” Huntington Chairman and CEO Stephen D. Steinour told analysts in a recent call.

“While we continue to focus on improving expense efficiencies at the company, we anticipate additional regulatory costs and expenses associated with strategic actions.”

Huntington Bancshares has a market cap of $5.47 billion in a sector, commercial banks, where the average company size is $28.17 billion. Its trailing 12-month P/E ratio is 9.95 and its five-year projected price-to-earnings-growth (PEG) ratio is 1.99, compared to 1.86 for the sector.

Its projected earnings per share growth for the coming year is zero, compared to a sector average of 12.22 percent.

Strength


Analysts are positive on HBAN, with buy or outperform calls from Jefferies, Morgan Stanley, Raymond James, and Standard & Poor’s Equity Research.

“We expect growth to continue in HBAN's commercial and industrial lending (almost 41 percent of HBAN's loans), which have grown strongly in the past four quarters, rising almost 21 percent from a year earlier,” S&P analysts wrote on Aug. 2.

“We also see strength in HBAN's home equity lending (almost 21 percent of lending, up 4.9 percent from a year ago), and residential mortgages (almost 13 percent of lending, up 7.8 percent). We think HBAN is competitive in loan pricing while maintaining credit quality.”

Huntington Bancshares next reports on Oct. 18.

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Thursday, 09 Aug 2012 06:44 PM
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