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 and stable allowance for credit losses, supporting expectations for expanded profitability into 2025.

• Robust capital and liquidity positions, with CET1 at 10.4% and a focus on talent and deposit-focused capabilities.

• Tangible book value per share up nearly 8% year-over-year, reflecting profitability and capital strength.

Financial highlights

• Q2 2024 EPS was $0.30; ROTCE at 16.1% (16.2% adjusted); return on average common equity 10.4%.

• Net interest income rose 1.9% sequentially to $1.31 billion, but fell 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%).

• Noninterest income increased 5% sequentially to $491 million, but was down 1% year-over-year; fee revenues driven by capital markets, payments, and wealth management.

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

Outlook and guidance

• Full-year outlook unchanged: accelerating loan and deposit growth, with sequential net interest income increases expected in the second half and into 2025.

• Core expenses forecasted to grow 4.5% for 2024, trending to low single-digit growth by year-end and into 2025.

• Net interest margin expected to remain stable around 3% for the next two quarters, with potential for long-term improvement if the yield curve steepens.

• Fee income expected to remain strong, targeting the upper end of the 5%-7% full-year growth range.

• Management expects continued economic uncertainty, with a baseline scenario of modest GDP growth and gradual increase in unemployment.