Huntington Bancshares Valuation

Huntington Bancshares Incorporated, the American bank holding company headquartered in Ohio is undervalued, according to Wolfteam Ltd.'s revenue and profitability projections and comparables estimates.

With 6.96 billion USD revenue, growing at 16.75 %, net profit margin of 32.17 % for 2022, Huntington Bancshares' intrinsic value is 24 billion USD, compared with Huntington Bancshares' market cpaitalization of 17.85 billion USD.

Added to that is a big annual dividend yield for Huntington Bancshares of 5.03 %, which also makes Huntington Bancshares look undervalued. With Price/Earnings ratio 8.06 Huntigton Banchsares' undervaluation is even more glaring. Barring a deep recession of the US economy, Huntington Bancshares will keep its exceptional profitability of circa 30 % average net profit margin for the last five years.

All in all, Huntington Bancshares, as well as many other US regional corporate banks are undervalued.

Below are Huntington Bancshares latest 3rd Quarter 2023 results:

2023 Third-Quarter Highlights:

• Earnings per common share (EPS) for the quarter were $0.35, flat from the prior quarter, and were lower by $0.04 from the year-ago quarter. Excluding the after tax impact of Notable Items, adjusted earnings per common share were $0.36.
• Net interest income increased $22 million, or 2%, from the prior quarter, and decreased $36 million, or 3%, from the year-ago quarter.
• Pre-Provision Net Revenue (PPNR) decreased $4 million from the prior quarter to $798 million, and decreased $59 million, or 7%, from the year-ago quarter. Excluding Notable Items, adjusted PPNR increased $6 million, or 1%, from the prior quarter to $813 million, and decreased $54 million, or 6%, from the year-ago quarter.
• Cash and cash equivalents and available contingent borrowing capacity of $91 billion at September 30, 2023, representing 204% of uninsured deposits.
• Average total deposits increased $2.6 billion, or 2%, from the prior quarter and $2.1 billion, or 1%, from the year-ago quarter.
  • Ending total deposits increased $839 million, or 1%, from the prior quarter and $2.6 billion, or 2%, from the year-ago quarter.
  • Ending core deposits increased $1.3 billion, or 1%, from the prior quarter reflecting continued momentum in consumer deposit gathering and ongoing focus on acquiring and deepening primary bank relationships.
• Average total loans and leases decreased $561 million from the prior quarter to $120.8 billion, and increased $3.8 billion, or 3%, from the year-ago quarter.
  • Average total commercial loans and leases decreased $1.2 billion, or 2%, and average total consumer loans increased $677 million, or 1%, from the prior quarter.
• Net charge-offs of 0.24% of average total loans and leases for the quarter, below the through the cycle target range.
• Nonperforming asset ratio of 0.52%.
• Allowance for credit losses (ACL) of $2.4 billion, or 1.96%, of total loans and leases at quarter end.
• Common Equity Tier 1 (CET1) risk-based capital ratio increased 28 basis points to 10.10%, continuing the trend of capital expansion.
• Tangible common equity (TCE) ratio decreased 10 basis points from the prior quarter to 5.70%, and increased 38 basis points from a year ago.
• Huntington was ranked first nationally for SBA 7(a) loan originations by volume for the sixth year in a row for SBA fiscal year 2023 and the 15th year in a row that Huntington has been the largest originator, by volume, of SBA 7(a) loans within footprint.

COLUMBUS, Ohio, Oct. 20, 2023 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2023 third quarter of $547 million, or $0.35 per common share, a decrease of $47 million, or $0.04, from the year-ago quarter.