Huntington National Bank 2004 Annual Report Download - page 85

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
segments, primarily reflecting interest rate and liquidity management revenue, partially offset by a $3.5 million improvement in the
Capital Markets Group margin, $7.7 million of higher interest income on securities, and $6.0 million of derivatives income.
Provision expense, attributable to Huntington Capital Markets lending activity, was nearly flat year over year.
Non-interest income was higher, reflecting gains recognized on Capital Markets Group investments.
Non-interest expense for operational, administrative, and support groups not specifically allocated to the other business segments
increased $19.9 million from 2002, including a $2.9 million increase in performance incentive compensation in the Capital
Markets Group.
The income tax benefit was $16.7 million in 2003, compared to an income tax provision of $0.1 million in 2002. This tax decrease was
due to lower pre-tax income and an 11.7% lower overall corporate effective tax rate (26.4% in 2003 vs. 38.1% in 2002).
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