Huntington Bancshares Incorporated Decreases Its Prime Rate To 7.75 Percent

Rhea-AI Summary

Huntington Bancshares (Nasdaq: HBAN) announced a reduction in its prime rate from 8% to 7.75%, effective November 8, 2024. This marks the second recent decrease in the bank's prime rate, following a previous reduction from 8.5% to 8% on September 19, 2024.

Positive

• Second consecutive prime rate reduction indicates potential lower borrowing costs for customers
• Gradual rate decreases (total 0.75% since September) suggest controlled monetary policy adjustment

Negative

• Lower prime rates typically result in reduced net interest margins for banks
• Declining rates may signal reduced profitability from lending operations

Insights

Financial Analyst

This prime rate reduction by Huntington Bancshares reflects broader monetary policy shifts and carries significant implications for the bank's operations. The 0.25% decrease to 7.75% will impact both lending profitability and competitive positioning. While lower rates typically compress net interest margins, potentially affecting earnings, they can stimulate loan demand and reduce default risks. The timing aligns with market expectations of broader interest rate trends. The sequential reductions from 8.5% to 8% and now to 7.75% indicate a consistent downward trajectory in the rate environment, which could reshape the bank's lending strategy and portfolio performance in the coming quarters.

COLUMBUS, Ohio, Nov. 7, 2024 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) announced that its prime rate is decreasing from 8 percent to 7.75 percent, effective November 8, 2024.

Huntington's rate last changed on September 19, 2024, decreasing from 8.5 percent to 8 percent.

About Huntington

Huntington Bancshares Incorporated is a $201 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates 975 branches in 12 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.

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SOURCE Huntington National Bank

FAQ

What is Huntington Bancshares' (HBAN) new prime rate as of November 8, 2024?

Huntington Bancshares' prime rate will be 7.75% effective November 8, 2024.

How much did Huntington Bancshares (HBAN) decrease its prime rate in November 2024?

Huntington Bancshares decreased its prime rate by 0.25 percentage points, from 8% to 7.75%.

When was Huntington Bancshares' (HBAN) previous prime rate change?

Huntington Bancshares' previous prime rate change was on September 19, 2024, when it decreased from 8.5% to 8%.

How much has Huntington Bancshares' (HBAN) prime rate decreased since September 2024?

Huntington Bancshares' prime rate has decreased by a total of 0.75 percentage points since September 2024, from 8.5% to 7.75%.