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Huntington Bancshares (HBAN)
NASDAQ:HBAN
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Huntington Bancshares
(NASDAQ:HBAN)74Outperform
Positive Factors
Business Model
Huntington is creating a hybrid business model by combining the stability of a regional bank with the nimbleness of a growth-focused institution.
Growth Opportunities
HBAN is investing in new geographies with a focus on local strategy, expecting 5-7% average loan growth in 2025, and should continue to see strong growth in both existing and expansion markets.
Negative Factors
Expenses
Total expenses ended up 5.2% year over year, roughly twice the growth of the median Midcap Bank.
Huntington Bancshares (HBAN) vs. S&P 500 (SPY)
Market Cap
$22.55B
Dividend Yield3.83%
Average Volume (3M)21.30M
Price to Earnings (P/E)12.7
Beta (1Y)1.18
Revenue Growth10.13%
EPS Growth-1.25%
CountryUS
Employees19,932
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)1.22
Shares Outstanding1,453,758,300
10 Day Avg. Volume24,681,382
30 Day Avg. Volume21,300,437
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.34
Price to Cash Flow (P/CF)4.00
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.23Price Target Upside25.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Huntington Bancshares Business Overview & Revenue Model
Company DescriptionHuntington Bancshares, Inc. operates as a bank holding company. It provides commercial and consumer banking services, mortgage banking services, automobile financing, recreational vehicle and marine financing, equipment leasing, investment management, trust services, brokerage services, insurance programs, and other financial products and services. The company operates through the following segments: Consumer & Business Banking, Commercial Banking, Commercial Real Estate & Vehicle Finance, Regional Banking & The Huntington Private Client Group, and Home Lending. The Consumer & Business Banking segment provides financial products and services to consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts, certificates of deposit, investments, consumer loans, credit cards and small business loans. The Commercial Banking segment provides products and services to the middle market, large corporate, and government public sector customers located primarily within its geographic footprint. The segment is divided into following business units: Middle Market, Large Corporate, Specialty Banking, Asset Finance, Capital Markets, Treasury Management, and Insurance. The Commercial Real Estate & Vehicle Finance segment provides products and services include providing financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers with real estate project financing needs, and financing for the purchase of automobiles, light-duty trucks, recreational vehicles and marine craft at franchised dealerships, financing the acquisition of new and used vehicle inventory of franchised automotive dealerships. The Regional Banking and The Huntington Private Client Group segment consists of private banking, wealth & investment management, and retirement plan services. The Home Lending segment originates and services consumer loans and mortgages for customers who are located in primary banking markets. Huntington Bancshares was founded in 1966 and is headquartered in Columbus, OH.
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 demonstrates robust financial performance with strong revenue growth and healthy profitability margins. The balance sheet is stable with a solid equity ratio and manageable debt levels. However, a declining trend in cash flow, particularly in operating cash flow, suggests a need for improved efficiency.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
15.38
Price Trends
16.58
Negative
16.56
Negative
15.10
Positive
Market Momentum
-0.29
Positive
32.47
Neutral
23.89
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 15.38 is below the 20-day moving average (MA) of 16.42, below the 50-day MA of 16.58, and above the 200-day MA of 15.10, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 32.47 is Neutral, neither overbought nor oversold. The STOCH value of 23.89 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $22.55B | 12.72 | 9.83% | 3.83% | 10.13% | -1.25% | |
72 Outperform | $27.71B | 13.28 | 11.78% | 3.34% | 11.21% | -2.26% | |
72 Outperform | $20.25B | 11.57 | 10.59% | 4.24% | 2.70% | -8.16% | |
71 Outperform | $71.41B | 13.13 | 10.82% | 3.35% | 7.24% | 7.51% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
63 Neutral | $7.82B | 11.89 | 10.67% | 4.77% | -6.54% | -21.90% | |
51 Neutral | $17.95B | 1,663.64 | >-0.01% | 5.05% | -11.11% | -133.79% |
* Financial Sector Average
Performance Comparison
HBAN
Huntington Bancshares
15.38
2.42
18.67%
CMA
Comerica
59.38
10.78
22.18%
FITB
Fifth Third Bancorp
40.45
5.72
16.47%
KEY
KeyCorp
16.26
1.99
13.95%
PNC
PNC Financial
180.47
35.44
24.44%
RF
Regions Financial
22.09
3.58
19.34%
Huntington Bancshares Earnings Call Summary
Earnings Call Date: Jan 17, 2025 | % Change Since: -8.67% | 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 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.
Private Placements and FinancingBusiness Operations and Strategy
Huntington Bancshares Sells Corporate Debt, Plans Reinvestment
Neutral
Dec 20, 2024
Huntington Bancshares announced the sale of $1.0 billion in corporate debt investment securities, resulting in a pre-tax loss of approximately $20 million to be recognized in the fourth quarter of 2024. The company plans to reinvest the proceeds into 0% risk-weighted securities, aiming to benefit its common equity tier 1 capital and expects a two-year earn-back period, impacting its financial positioning and strategic operations.
Business Operations and StrategyFinancial Disclosures
Huntington Bancshares Highlights Growth at Goldman Sachs Conference
Positive
Dec 11, 2024
Huntington Bancshares will present at the Goldman Sachs 2024 Financial Services Conference, highlighting its robust organic growth and strategic expansions. The company has achieved significant loan and deposit growth, with a focus on disciplined expense management and investment in revenue-producing initiatives, setting the stage for strong performance in 2025.
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.