Huntington Bancshares (HBAN) Q2 2024 earnings summary

Executive summary

• Achieved sequential growth in net interest income, noninterest income, loans, and deposits in Q2 2024, with momentum from organic growth strategies and investments in new geographies and businesses.

• Net income for Q2 2024 was $474 million ($0.30 per share), up from Q1 but down from Q2 2023, reflecting lower net interest income and higher noninterest expense.

• Credit quality remained strong, with low net charge-offs, stable allowance for credit losses, and disciplined risk management.

• Robust liquidity and capital base support continued growth, with peer-leading capital and liquidity metrics.

• Tangible book value per share increased nearly 8% year-over-year.

Financial highlights

• Earnings per share of $0.30 for Q2 2024; return on tangible common equity (ROTCE) at 16.1%, adjusted ROTCE at 16.2%.

• Net interest income was $1.31 billion, up 2% sequentially but down 3% year-over-year; net interest margin at 2.99%.

• Average loan balances up $2 billion (1.7%) year-over-year; average deposits up $8 billion (5.5%) year-over-year.

• Allowance for credit losses at 1.95%, with net charge-offs at 0.29% of average loans and leases.

• Efficiency ratio at 60.8%, up from 55.9% a year ago.

Outlook and guidance

• Management expects continued loan and deposit growth, with higher revenues anticipated in the second half of 2024 and momentum into 2025.

• Net interest income expected to continue sequential growth in the second half of the year; noninterest income (ex-notables) up 5–7%.

• Core expenses forecasted to grow 4.5% for the full year, trending toward low single digits by Q4 and into 2025.

• Credit quality expected to remain strong and aligned with current performance.

• Guidance incorporates economic uncertainty, anticipated Fed rate cuts, and ongoing macroeconomic risks.