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Huntington Bancshares (HBAN)
NASDAQ:HBAN
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Huntington Bancshares
(NASDAQ:HBAN)
72Outperform
Positive Factors
Earnings Performance
Net interest margin showed a positive surprise, increasing by 5 basis points, contributing to a high-quality earnings beat.
Growth Opportunities
HBAN set out to provide further color on the growth opportunities it has within its existing and expansion markets, which should provide top-line growth in the ~7% range in the next few years.
Negative Factors
Expense Management
Total expenses ended up 5.2% year over year, roughly twice the growth of the median Midcap Bank.
Uncertainties in Guidance
The relatively narrow range in net interest income growth guidance reflects uncertainties from trade, tax, and immigration policies.
Huntington Bancshares (HBAN) vs. S&P 500 (SPY)
Market Cap
$18.83B
Dividend Yield4.81%
Average Volume (3M)26.34M
Price to Earnings (P/E)10.6
Beta (1Y)1.23
Revenue Growth10.13%
EPS Growth-1.25%
CountryUS
Employees19,932
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.22
Shares Outstanding1,460,753,900
10 Day Avg. Volume26,120,675
30 Day Avg. Volume26,337,549
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.10
Price to Cash Flow (P/CF)3.70
P/FCF Ratio2.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.29Price Target Upside41.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Huntington Bancshares Business Overview & Revenue Model
Company DescriptionHuntington Bancshares Incorporated (HBAN) is a regional bank holding company headquartered in Columbus, Ohio. Operating primarily through its subsidiary, The Huntington National Bank, the company provides a comprehensive range of financial services including retail and commercial banking, wealth management, and insurance services. Huntington Bancshares serves customers across the Midwest and beyond, focusing on personalized financial solutions and community engagement.
How the Company Makes MoneyHuntington Bancshares generates revenue primarily through interest income from its lending activities, including consumer loans, commercial loans, and mortgages. Additionally, the company earns non-interest income through fees and service charges related to deposit accounts, wealth management services, and card services. The bank also benefits from investment securities and trading activities. Key partnerships with fintech companies and strategic acquisitions have further enhanced its service offerings and customer base, contributing to its overall financial performance.
Huntington Bancshares Financial Statement Overview
Summary
Huntington Bancshares presents a robust financial profile with strong revenue growth and healthy profitability margins in the income statement. The balance sheet indicates financial stability, characterized by solid equity and manageable debt levels. While the cash flow is positive, the declining trend in operating cash flow warrants attention to sustain long-term financial health.Income Statement
Huntington Bancshares demonstrates strong profitability with a substantial increase in total revenue from the previous year. The gross profit margin remains healthy, and the net profit margin shows consistent performance. Revenue growth has been robust over the years, indicating positive business momentum. However, the absence of EBITDA data in the latest report limits a complete analysis of operating performance.85
Very Positive
Balance Sheet
The balance sheet of Huntington Bancshares shows a solid equity ratio, indicating a stable financial foundation. The debt-to-equity ratio is relatively low, reflecting prudent financial management. However, the return on equity has shown some variability, which needs monitoring for consistent shareholder returns.78
Positive
Cash Flow
Cash flow analysis reveals positive operating cash flow and free cash flow, although both have declined from previous levels. The free cash flow to net income ratio indicates efficient cash generation relative to earnings. Nevertheless, the reduction in operating cash flow suggests a need for improved cash conversion efficiency.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.92B | 6.95B | 7.25B | 5.99B | 4.82B | Gross Profit |
| 9.92B | 6.95B | 1.28B | 5.99B | 4.82B | EBIT |
| 9.80B | 2.38B | 3.83B | 1.59B | 972.00M | EBITDA |
| 0.00 | 0.00 | 3.25B | 1.98B | 1.34B | Net Income Common Stockholders |
| 1.94B | 1.95B | 2.24B | 1.29B | 817.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 28.96B | 10.13B | 25.06K | 34.37B | 23.20B | Total Assets |
| 204.23B | 189.37B | 182.91B | 174.06B | 123.04B | Total Debt |
| 199.00M | 12.40B | 11.71B | 7.44B | 8.54B | Net Debt |
| -1.49B | 2.07B | 4.79B | 1.53B | 1.82B | Total Liabilities |
| 184.45B | 169.97B | 165.14B | 154.75B | 110.05B | Stockholders Equity |
| 19.74B | 19.35B | 17.73B | 19.30B | 12.99B |
| Cash Flow | Free Cash Flow | |||
| 1.81B | 2.52B | 3.81B | 1.81B | 1.20B | Operating Cash Flow |
| 1.81B | 2.66B | 4.03B | 2.06B | 1.32B | Investing Cash Flow |
| -12.12B | -3.00B | -11.61B | -3.96B | -8.64B | Financing Cash Flow |
| 13.02B | 3.77B | 8.76B | 827.00M | 12.74B |
Huntington Bancshares Technical Analysis
Negative
12.89
Price Trends
15.27
Negative
16.03
Negative
15.16
Negative
Market Momentum
-0.20
Negative
44.00
Neutral
38.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBAN, the sentiment is Negative. The current price of 12.89 is below the 20-day moving average (MA) of 14.31, below the 50-day MA of 15.27, and below the 200-day MA of 15.16, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBAN.
Huntington Bancshares Risk Analysis
Huntington Bancshares disclosed 32 risk factors in its most recent earnings report. Huntington Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Huntington Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $18.83B | 10.57 | 9.93% | 4.81% | 10.13% | -1.25% | |
67 Neutral | $22.61B | 10.79 | 11.92% | 4.31% | 11.21% | -2.26% | |
66 Neutral | $15.21B | 11.50 | 6.21% | 4.82% | 1.99% | -2.45% | |
64 Neutral | $13.37B | 9.30 | 9.39% | 4.85% | 16.11% | -8.85% | |
63 Neutral | $25.95B | 10.79 | 9.23% | 3.42% | 6.07% | -7.10% | |
62 Neutral | $17.20B | 9.83 | 10.72% | 5.22% | 2.70% | -8.16% | |
54 Neutral | $15.04B | 1,663.64 | -0.99% | 5.97% | -11.11% | -133.79% |
* Financial Sector Average
Performance Comparison
HBAN
Huntington Bancshares
12.89
0.19
1.50%
FITB
Fifth Third Bancorp
33.84
0.47
1.41%
KEY
KeyCorp
13.73
0.00
0.00%
MTB
M&T Bank
157.95
21.18
15.49%
RF
Regions Financial
18.97
0.56
3.04%
CFG
Citizens Financial
34.82
3.13
9.88%
Huntington Bancshares Earnings Call Summary
Earnings Call Date: Jan 17, 2025 | % Change Since: -22.63% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in loans, deposits, and fee revenues, along with strong financial performance metrics across various segments. However, there were challenges such as a decline in commercial real estate balances and expectations of lower net interest income in the first quarter of 2025. Despite these challenges, the overall sentiment is positive due to strong credit performance and robust growth outlook.Highlights
Record Fee Revenue and Growth in Loans and Deposits
Record fee revenues and accelerated growth of loans and deposits with average deposits increasing by $9.7 billion or 6.5% and average loan balances by $7 billion or 5.7% year-over-year.
Strong Financial Performance Metrics
Earnings per common share of $0.34, Return on Tangible Common Equity at 16.4%, and CET1 ended the quarter at 10.5%, with a 30 basis point increase from last year.
Exceptional Growth in Capital Markets and Wealth Management
Capital Markets set a new quarterly record for revenue at $120 million, a 74% increase from a year ago. Wealth management fees increased by 8%, and AUM grew by 16%.
Consistent Growth in Payments Segment
Payments saw 8% growth year-over-year in the fourth quarter with a 16% increase in commercial payment revenues.
Positive Loan and Deposit Outlook for 2025
Expectation of robust loan growth between 5% and 7% and deposit growth between 3% and 5% for the full year 2025.
Lowlights
Decline in Commercial Real Estate Balances
Commercial real estate balances declined by $465 million during the quarter.
Lower Net Interest Income Expected in Q1 2025
Net interest income expected to be lower by approximately 2% to 3% in Q1 2025 due to normal day count headwinds and a modestly lower net interest margin.
Higher Noninterest Expense
GAAP noninterest expense increased sequentially by $48 million, driven primarily by higher revenue-driven compensation expenses.
Company Guidance
During the Huntington Bancshares Q4 2024 earnings call, the company highlighted several key metrics and guidance for the upcoming year. They reported earnings per common share of $0.34 and a return on tangible common equity of 16.4%. Average loan balances increased by $7 billion or 5.7% year-over-year, while average deposits grew by $9.7 billion or 6.5%. The Common Equity Tier 1 (CET1) ratio ended the quarter at 10.5%, with an adjusted CET1, including AOCI, at 8.7%. Huntington expects to maintain strong momentum into 2025, projecting loan growth between 5% and 7%, deposit growth between 3% and 5%, and net interest income growth between 4% and 6%. Noninterest income is anticipated to grow between 4% and 6%, driven by key areas such as payments, wealth management, and capital markets. The company also aims for expense growth of 3.5% to 4.5%, with a focus on maintaining positive operating leverage. Credit quality remains strong, with net charge-offs stable at 30 basis points and an allowance for credit losses of 1.88%.Huntington Bancshares Corporate Events
Business Operations and Strategy
Huntington Bancshares to Present at RBC Conference
Neutral
Mar 5, 2025
Huntington Bancshares Incorporated, a financial institution, announced its participation in the RBC Capital Markets Financial Institutions Conference on March 5, 2025. The event will feature presentations by Zach Wasserman, Chief Financial Officer, and Amit Dhingra, Chief Enterprise Payments Officer, to analysts and investors. This participation is part of Huntington’s ongoing efforts to engage with the financial community and provide insights into its operations and strategies.
Business Operations and Strategy
Huntington Bancshares to Host Investor Day 2025
Positive
Feb 6, 2025
Huntington Bancshares announced that it will host an Investor Day on February 6, 2025, where its leadership, including CEO Stephen Steinour, will present on various aspects of the company’s strategies and financial outlook. The event highlights Huntington’s focus on sustained growth through disciplined risk management, customer-focused banking, and expanding capabilities in commercial and consumer banking to drive value creation and maintain top quartile performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.