Credit Card Helps Huntington Bank Increase Profits
Huntington Bank recently released a credit card for its customers known as “Voice.” The card offers a unique opportunity to pick their own rewards program based on their spending habits.
Since this launch, Huntington has seen a significant increase in profits, up 6% in the third quarter of 2013. Some of this growth can be attributed to the credit card, but it is also the result of an increase of customers and a stabilization of commercial real estate loans.
More than 50% of Huntington’s customers now use six or more products through the bank, including checking accounts, savings accounts, equity lines and credit cards. Dan Walsh, president of the Cleveland region for Huntington Bank, remarked that this is an “important milestone” for the company.
Loan losses for the third quarter were cut in half, a significant improvement for the bank. In the second quarter, loan losses rose by 60%, which means that the bank may be getting back on track. Delinquent loans were down 25% from a year ago, and shares of Huntington went up 2%.
Notably, Huntington Bank has also seen an improvement in its efficiency ratio, which measures the amount of money the bank spends to earn $1. That number is now at 60.6.