Huntington Bancshares (HBAN) Goldman Sachs 2024 U.S. Financial Services Conference summary

Growth strategy and market expansion

• Executed an offensive growth strategy, expanding into Southeast, Texas, North & South Carolina, and launching new verticals, while peers remained defensive.

• Added over 80 bankers in the Carolinas and Texas, supporting expansion in high-growth states and new commercial verticals, with new initiatives contributing 35% of loan growth (ex-CRE).

• Opened 23 new branches in high-density areas over three years, with plans for 93 more in the next five years, including 55 in the Carolinas and 21 in Colorado through 2030.

• Investments in new teams and capabilities are tracking at or above initial expectations, fueling multi-year growth and accelerated profitability from branch expansion.

• Branch network optimization, digital integration, and advisory-focused remodeling are driving new customer acquisition and local market responsiveness.

Financial performance and outlook

• Achieved peer-leading organic loan and deposit growth, with 6.3% annualized loan growth and 5.6% YoY average deposit growth as of 3Q24, outperforming industry medians by six percentage points.

• Net interest income (NII) is expected to reach record levels in 2025, driven by sustained loan growth and stable net interest margin (NIM), with sequential NII expected to be flat to modestly higher in 4Q24.

• Fee income grew 12% year over year in Q3, with commercial payments up 8%, wealth revenue up 18%, capital markets revenue up 50%, and fee revenues now 28% of total revenues in 2024.

• Positive operating leverage is a core focus, with 10 of the last 12 years delivering this metric; 2025 is expected to see solid profit growth and robust PPNR expansion.

• Expense management includes continual re-engineering of baseline costs, enabling increased investment in technology and growth initiatives.

Credit quality and capital management

• Maintained top quartile credit performance, with stable net charge-offs (NCOs at 30bps vs. peer median 42bps), a 4.4% reserve coverage ratio, and a top-tier allowance for credit losses (ACL) at 1.93%.

• CRE exposure is the lowest among peers at 9%–9.1% of total loans, with robust reserves and a diversified commercial portfolio.

• Capital priorities remain focused on organic growth, with strong CET1 ratios (up 90bps YoY to 8.9%) and a disciplined approach to share repurchases.

• Gradual reduction in credit reserves over the last three quarters, reflecting stable charge-offs and improving economic clarity.

• Consumer loans focus on prime/super-prime borrowers, with over 95% secured; commercial loans diversified by industry and geography.