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Huntington Bancshares (HBAN)
NASDAQ:HBAN
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Huntington Bancshares
(NASDAQ:HBAN)
77Outperform
Positive Factors
Earnings Beat
Huntington reported 1Q25 EPS of 34c, beating MS/Consensus of 30c/31c.
Growth Prospects
Shares should see solid upside as HBAN continues to execute towards its 2027 goals, given its growth prospects along with improving returns and top quartile execution.
Loan and Deposit Growth
HBAN is seeing increased traction in the expansion markets and new specialty lending verticals, driving peer leading loan and deposit growth.
Negative Factors
Expense Increase
Total expenses ended up 5.2% Y/Y, as HBAN invested to increase its presence in the Carolinas and Texas, and added 8 new commercial verticals.
Price Target Adjustment
Maintain BUY rating, but lowering PT to $18 (was $19).
Huntington Bancshares (HBAN) vs. S&P 500 (SPY)
Market Cap
$23.57B
Dividend Yield3.83%
Average Volume (3M)21.65M
Price to Earnings (P/E)12.4
Beta (1Y)1.17
Revenue Growth7.55%
EPS Growth17.46%
CountryUS
Employees20,092
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,456,811,600
10 Day Avg. Volume19,432,647
30 Day Avg. Volume21,649,028
Financial Highlights & Ratios
PEG Ratio1.66
Price to Book (P/B)1.08
Price to Sales (P/S)0.00
P/FCF Ratio11.50
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit4.49
Enterprise Value/Ebitda4.19
Forecast
1Y Price Target
$17.53Price Target Upside8.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Huntington Bancshares Business Overview & Revenue Model
Company DescriptionHuntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company operates through four segments: Consumer and Business Banking; Commercial Banking; Vehicle Finance; and Regional Banking and The Huntington Private Client Group (RBHPCG). The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, credit cards, and consumer and small business loans, as well as investment products. This segment also provides mortgages, insurance, interest rate risk protection, foreign exchange, automated teller machine, and treasury management services, as well as online, mobile, and telephone banking services. It serves consumer and small business customers. The Commercial Banking segment offers regional commercial banking solutions for middle market businesses, government and public sector entities, and commercial real estate developers/REITs; and specialty banking solutions for healthcare, technology and telecommunications, franchise finance, sponsor finance, and global services industries. It also provides asset finance services; capital raising solutions, sales and trading, and corporate risk management products; institutional banking services; and treasury management services. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment offers private banking, wealth and investment management, and retirement plan services. As of March 18, 2022, the company had approximately 1,000 branches in 11 states. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.
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 a stable financial profile with solid revenue growth and profitability. The balance sheet is robust, with prudent leverage and strong cash flow generation. However, there are areas for improvement in operational efficiencies.Income Statement
Huntington Bancshares shows solid revenue growth with a notable increase in total revenue from prior periods. The company exhibits healthy gross and net profit margins, indicating efficient operations. However, EBIT and EBITDA margins have faced some compression, suggesting potential cost management issues or increased competition.75
Positive
Balance Sheet
The balance sheet is robust with a strong equity base. The Debt-to-Equity ratio is low, reflecting conservative leverage practices. However, the Equity Ratio shows a lower proportion of equity financing, suggesting potential reliance on liabilities for asset funding.70
Positive
Cash Flow
Cash flow statements are strong, with consistent free cash flow generation. The growth in free cash flow is commendable, and the operating cash flow to net income ratio is stable, highlighting efficient cash conversion from earnings. This suggests a well-managed cash flow position despite fluctuations in investing and financing activities.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.55B | 7.38B | 6.95B | 7.25B | 5.99B | 4.82B | Gross Profit |
| 8.73B | 7.38B | 6.95B | 1.28B | 5.99B | 4.82B | EBIT |
| 1.34B | 2.31B | 2.38B | 3.83B | 1.59B | 972.00M | EBITDA |
| 1.54B | 0.00 | 0.00 | 3.25B | 1.98B | 1.34B | Net Income Common Stockholders |
| 2.05B | 1.94B | 1.95B | 2.24B | 1.29B | 817.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 29.44B | 28.96B | 10.13B | 25.06K | 34.37B | 23.20B | Total Assets |
| 209.60B | 204.23B | 189.37B | 182.91B | 174.06B | 123.04B | Total Debt |
| 18.63B | 16.43B | 12.40B | 11.71B | 7.44B | 8.54B | Net Debt |
| 2.70B | 3.10B | 2.07B | 4.79B | 1.53B | 1.82B | Total Liabilities |
| 189.11B | 184.45B | 169.97B | 165.14B | 154.75B | 110.05B | Stockholders Equity |
| 20.43B | 19.74B | 19.35B | 17.73B | 19.30B | 12.99B |
| Cash Flow | Free Cash Flow | ||||
| 1.87B | 1.67B | 2.52B | 3.81B | 1.81B | 1.20B | Operating Cash Flow |
| 2.04B | 1.81B | 2.66B | 4.03B | 2.06B | 1.32B | Investing Cash Flow |
| -12.01B | -12.12B | -3.00B | -11.61B | -3.96B | -8.64B | Financing Cash Flow |
| 13.27B | 13.02B | 3.77B | 8.76B | 827.00M | 12.74B |
Huntington Bancshares Technical Analysis
Positive
16.18
Price Trends
14.52
Positive
15.46
Positive
15.31
Positive
Market Momentum
0.49
Negative
71.11
Negative
95.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBAN, the sentiment is Positive. The current price of 16.18 is above the 20-day moving average (MA) of 14.98, above the 50-day MA of 14.52, and above the 200-day MA of 15.31, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 71.11 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.57B | 12.41 | 10.30% | 3.83% | 7.55% | 17.46% | |
75 Outperform | $20.31B | 10.84 | 11.33% | 4.38% | 1.05% | 12.14% | |
74 Outperform | $30.14B | 12.58 | 9.39% | 2.88% | 1.20% | 1.12% | |
70 Outperform | $18.14B | 13.28 | 6.37% | 4.02% | -2.12% | 13.92% | |
69 Neutral | $26.46B | 12.54 | 11.71% | 3.68% | 5.75% | 0.68% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% | |
58 Neutral | $18.23B | 1,663.64 | 0.14% | 4.93% | -12.50% | -120.77% |
* Financial Sector Average
Performance Comparison
HBAN
Huntington Bancshares
16.18
2.76
20.57%
FITB
Fifth Third Bancorp
39.64
3.24
8.90%
KEY
KeyCorp
16.63
2.13
14.69%
MTB
M&T Bank
187.73
39.98
27.06%
RF
Regions Financial
22.59
3.55
18.64%
CFG
Citizens Financial
41.82
6.75
19.25%
Huntington Bancshares Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: 21.93%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in loan and deposit growth, revenue and profit increases, and strategic execution. However, some caution was noted regarding economic uncertainty and a rise in criticized assets. Overall, the positive outcomes outweigh the challenges, indicating confidence in future performance.Q1-2025 Updates
Positive Updates
Strong Loan and Deposit Growth
Average loans grew by $9 billion year over year, and average deposits increased by $11 billion year over year. Primary bank relationships grew by 3% in consumer and 4% in business banking over the previous year.
Robust Fee Revenue Increase
Fee income increased over 6% year over year, led by payments, wealth, and capital markets.
Improved Capital Levels
Adjusted CET1 grew by 20 basis points from the prior quarter to 8.9%. A $1 billion multiyear share repurchase authorization was approved.
Significant Revenue and PPNR Growth
10% year over year revenue growth and 24% year over year PP and R growth. Earnings per common share of $0.34 and ROTCE at 16.7% for the quarter.
Continued Credit Performance
Net charge-offs decreased four basis points in the quarter. Allowance for credit losses was 1.87%.
Successful Execution on Strategic Initiatives
Investments in new verticals and geographic expansion in North and South Carolina and Texas contributed significantly to growth.
Negative Updates
Economic Uncertainty
There is more uncertainty in the economic outlook for 2025, with potential headwinds that could arise from various economic scenarios.
Criticized Asset Ratio Increase
The criticized asset ratio increased to 3.98%.
Commercial Real Estate Balances Decline
Commercial real estate balances declined by $261 million.
Company Guidance
During the Huntington Bancshares Incorporated First Quarter 2025 Earnings Call, the guidance provided highlighted a robust first quarter performance, with significant growth across several metrics. The company recorded a year-over-year revenue increase of 10% and a 24% rise in pre-provision net revenue (PPNR), reaching $783 million. Earnings per share stood at $0.34, with a return on tangible common equity (ROTCE) of 16.7%. Average loan balances grew by $2.7 billion, or 2.1%, from the prior quarter, while average deposits increased by $2.2 billion, or 1.4%. The company maintained strong credit quality, reflected in net charge-offs of 26 basis points and an allowance for credit losses of 1.87%. Additionally, Huntington Bancshares approved a $1 billion share repurchase program and reported a 20 basis point increase in adjusted CET1 to 8.9%. For 2025, the company expects loan growth of 5% to 7%, deposit growth of 3% to 5%, net interest income growth of 5% to 7%, and fee revenue growth within the 4% to 6% range. The guidance reflects a strategy focused on sustaining growth through disciplined expense management, continued investments in fee revenue, and strong credit performance, while remaining prepared for potential economic uncertainties.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.