Boston, MA, 02/27/2014 (usastockreport) – Huntington Bancshares Incorporated (NASDAQ:HBAN) has received an approval from federal regulators for an increase of its quarterly dividend. The multi-state diversified bank plans to increase its quarterly dividend by a penny FROM $0.05 to $0.06, as well as carry out a $250 million buy back of its stock, expected to run through to the first quarter of 2015.
The increase in dividend offer to 6 cents is expected to start in the fourth quarter, with the board expected to consider the offering and share repurchase proposal on April 15. The increase in divided offer is an indication of the banks solid financial performance in the recent quarter.
The proposed capital actions represent an 11% increase in capital return compared to dividends offered for the four quarter of last year. Huntington Bancshares Incorporated (NASDAQ:HBAN)’s dividend offer increase is a reflection of the banks risk management and capital assessment process that have been performing well over the past few months.
Huntington Bancshares Fair play philosophy
The increase in dividend offer is expected to go well with shareholders at the back of the bank also announcing that it is doing away with its $10 overdraft protection transfer fees as part of its fair play philosophy in the banking sector. Customers have in the recent past been calling for a fair approach in the way they bank their hard earned cash.
The latest move is aimed at giving consumers the convenience of moving money from one account to another without having to incur additional costs. The latest move will also see the bank unveil a series of humorous commercials, aimed at showing how the bank treats its consumers.
Impact of the New Changes
Under the new changes, consumers will be allowed to link any of their savings, money market, home equity and credit card to other checking account without incurring any transfer fees. The elimination of the transfer fee is expected to affect 10% of small business customers.
Huntington Bancshares Incorporated (NASDAQ:HBAN)’s stock remained unchanged In Wednesday trading session, trading below the $10 mark at $9.88 having dropped by 0.80%.