Financial Stocks Mostly Lower; Huntington Banc Slips After Q4 Profit Declines Compared to Year-Ago Period
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Financial stocks are lower, with the NYSE Financial Sector Index sinking 0.7% and the S&P Financial 100 Index declining 0.7%.
In company news, Huntington Banc ( HBAN ) fell in Thursday trading, with shares declining after the bank holding company said its net interest margin will likely remain under pressure this year, reducing the positive influence of rising net interest income. Q4 profit also fell compared to year-ago levels.
Without providing specific numbers, HBAN said it expects "moderate" gains in 2014 over the bank's reported $1.732 billion in net interest income last year. But the company also warned those gains would be largely offset by "continued downward pressure" on net interest margin. Fully-taxable equivalent net interest margin fell 5 basis points year over year to 3.36% during 2013, including a 17-point slide to 3.28% in Q4 compared to the same quarter in 2012.
The downbeat forecast upstaged mostly positive Q4 results for the corporate parent of Huntington National Bank, which posted net income of of $0.18 per share during the three months ended Dec. 31, ex items, topping the the Capital IQ consensus by $0.01 but trailing per-share earnings in the year-ago quarter by $0.01 per share.
HBAN shares were down about 2.6% at $9.64 apiece in recent trade, backing away from Wednesday's closing price of $9.90 a share - just a penny under its 52-week high. The stock has been on a mostly upward arc over the past five year, rebounding from a steep fall to just $1.02 a share in March 2009 that followed the company cancelling its stock buyback program and reporting a $113.8 million net loss in the prior fiscal year, reversing a $75.1 million profit in 2007.
In other sector news,
(+) BLK, (+2.4%) Reports Q4 EPS of $4.92, ex items, beating Capital IQ consensus by $0.59 per share. Revenue climbs 9.4% year over year to $2.78 bln, roughly in-line with the $2.69 bln consensus. Assets under management rise 14% from year-ago levels. Shares it a record high.
(-) C, (-4.6%) Earns $0.82 per share in Q4, ex items, missing Wall Street estimates by $0.16. Revenue declines 0.8% year over year to $17.78 bln, also trailing consensus view by $410 mln.