Huntington Bancshares (HBAN) UBS Financial Services Conference summary

Consumer and commercial client trends

• Consumer credit portfolios show normalization post-pandemic, with low utilization rates and strong auto business performance, though lower-income segments face more stress from inflation.

• Commercial clients are generally optimistic despite policy uncertainty and regulatory changes, with strong credit performance and constructive loan growth outlooks.

• January was seasonally slow for activity, but Capstone pipelines and loan backlogs remain healthy, supporting a positive near-term outlook.

Financial targets and drivers

• Net interest margin (NIM) is expected to rise above the 10-year average of 3.18% by 2027, driven by yield curve normalization, funding cost reduction, and portfolio optimization.

• Pre-provision net revenue (PPNR) is targeted to grow 6%-9% annually, with 75% of growth from revenues and 25% from operating leverage.

• Loan growth guidance for 2025 is 5%-7%, with deposit growth at 3%-5%, aiming for long-term alignment between loan and deposit growth rates.

Investment and expansion strategy

• Investment spend is growing at over twice the rate of total expenses, with a focus on technology, marketing, and talent acquisition to support digital and physical expansion.

• Plans include opening 100 new branches, primarily in the Carolinas and Colorado, using a data-driven approach to market entry and leveraging specialty verticals to accelerate payback.

• Expansion into new markets is supported by strong digital acquisition and localized marketing, with a 25% increase in unaided brand awareness in Colorado.