Huntington Bancshares Inc. will cut 150 to 200 jobs to reduce costs, according to various third-party reports.
"While our business continues to perform well, the rapidly changing interest rate environment fundamentally impacts our revenue. In response, Huntington has taken a variety of measures to reduce expenses, which includes adjusting staffing levels," a spokesperson for the Columbus, Ohio-based bank told The Columbus Dispatch. The publication was the first to report the news.
The Federal Reserve has cut the federal funds rate range by 50 basis points this year, and markets are pricing in a 92.5% chance of another cut at the upcoming October meeting, based on CME Group Inc.'s FedWatch tool. An analysis by S&P Global Market Intelligence showed banks that reported in the first week of earnings season saw a median drop of 17 basis points in their third-quarter net interest margin as compared with the year-ago period. Almost half of the banks in the study posted NIMs that were below analyst estimates.
The study sampled banks with at least $26 billion in assets that reported earnings the week of Oct. 14.
Huntington Bancshares will report third-quarter earnings in the pre-market hours of Oct. 24. The Market Intelligence GAAP consensus EPS estimate is 33 cents for the quarter, which would be flat compared with its earnings in the third quarter of 2018.