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Huntington Bancshares (HBAN)
:HBAN
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Huntington Bancshares
(NASDAQ:HBAN)
Rating:77Outperform
Price Target:―
Positive Factors
Earnings
Huntington reported 1Q25 EPS of 34c, beating MS/Consensus of 30c/31c.
Financial Performance
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.
Growth Strategy
Momentum in expansion markets/verticals should drive strong growth and more conviction on medium-term ROTCE.
Negative Factors
Expense Management
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.
Huntington Bancshares (HBAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.55B
Dividend Yield4%
Average Volume (3M)23.99M
Price to Earnings (P/E)11.9
Beta (1Y)1.17
Revenue Growth7.55%
EPS Growth17.46%
CountryUS
Employees20,092
SectorFinancial
Sector Strength75
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,456,811,600
10 Day Avg. Volume30,657,708
30 Day Avg. Volume23,993,757
Financial Highlights & Ratios
PEG Ratio-3.69
Price to Book (P/B)1.33
Price to Sales (P/S)0.00
P/FCF Ratio10.68
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit3.77
Enterprise Value/Ebitda2.28
Forecast
1Y Price Target
$17.65Price Target Upside12.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Huntington Bancshares Business Overview & Revenue Model
Company DescriptionHuntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. It operates through its subsidiary, The Huntington National Bank, providing a comprehensive range of banking services. The company offers retail banking, commercial banking, and wealth management services across its network of branches primarily located in the Midwest region of the United States. Its core products and services include checking and savings accounts, mortgage and consumer loans, credit cards, and various investment and insurance solutions.
How the Company Makes MoneyHuntington Bancshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and lease financing, where the company earns money from the interest charged on consumer and commercial loans, including mortgages, personal loans, and business loans. Non-interest income comes from fees and service charges related to banking services, such as account maintenance fees, transaction fees, and overdraft charges. Additionally, Huntington earns income from investment management services, trust services, and insurance product sales. The bank also benefits from strategic partnerships and acquisitions that enhance its product offerings and expand its market reach, contributing to its financial performance.
Huntington Bancshares Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: 19.71%|
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 Financial Statement Overview
Summary
Huntington Bancshares showcases solid revenue growth and profitability, supported by a robust balance sheet with prudent leverage and strong cash flow generation. However, there are opportunities 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 | ||||
| 12.03B | 11.96B | 8.92B | 6.96B | 6.08B | 4.97B | Gross Profit |
| 7.12B | 6.96B | 6.90B | 6.96B | 5.97B | 3.77B | EBIT |
| 2.55B | 2.40B | 2.38B | 2.76B | 1.59B | 972.00M | EBITDA |
| 3.19B | 3.02B | 3.18B | 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 | ||||
| 19.68B | 17.26B | 13.82B | 7.45B | 6.33B | 7.08B | Total Assets |
| 209.60B | 204.23B | 189.37B | 182.91B | 174.06B | 123.04B | Total Debt |
| 18.76B | 16.57B | 13.01B | 11.71B | 7.44B | 8.54B | Net Debt |
| 2.83B | 3.24B | 2.69B | 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 | ||||
| 1.68B | 1.67B | 2.52B | 3.81B | 1.81B | 1.20B | Operating Cash Flow |
| 1.85B | 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 |
| 13.29B | 13.02B | 3.77B | 8.76B | 827.00M | 12.74B |
Huntington Bancshares Technical Analysis
Positive
15.73
Price Trends
14.90
Positive
15.17
Positive
15.40
Positive
Market Momentum
0.15
Positive
54.40
Neutral
14.85
Positive
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 15.73 is above the 20-day moving average (MA) of 15.61, above the 50-day MA of 14.90, and above the 200-day MA of 15.40, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.85 is Positive, 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 | $22.55B | 11.93 | 10.30% | 4.00% | 7.55% | 17.46% | |
77 Outperform | $28.93B | 12.08 | 9.39% | 3.03% | 1.20% | 1.12% | |
75 Outperform | $19.36B | 10.40 | 11.33% | 4.64% | 1.05% | 12.14% | |
73 Outperform | $25.58B | 12.17 | 11.71% | 3.86% | 5.75% | 0.68% | |
72 Outperform | $17.78B | 13.06 | 6.37% | 4.10% | -2.37% | 13.92% | |
64 Neutral | $12.73B | 9.77 | 7.84% | 78.17% | 12.05% | -7.99% | |
61 Neutral | $17.46B | 1,663.64 | 0.14% | 5.21% | -12.50% | -120.77% |
* Financial Sector Average
Performance Comparison
HBAN
Huntington Bancshares
15.73
3.70
30.76%
FITB
Fifth Third Bancorp
38.78
4.16
12.02%
KEY
KeyCorp
16.01
3.01
23.15%
MTB
M&T Bank
181.70
38.04
26.48%
RF
Regions Financial
21.96
3.83
21.13%
CFG
Citizens Financial
41.32
7.99
23.97%
Huntington Bancshares Corporate Events
Business Operations and Strategy
Huntington Bancshares to Present at Financials Conference
Positive
Jun 11, 2025
Huntington Bancshares announced its participation in the 2025 Morgan Stanley US Financials Conference on June 11, 2025, where CFO Zach Wasserman will present. The company highlights its strategic focus on organic growth, robust profit growth, and strong credit performance, positioning itself to outperform in various economic scenarios.
The most recent analyst rating on (HBAN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.