Huntington Bank: Set for Outperformance in Coming Years, CEO Says

Huntington Bancshares Incorporated (Nasdaq: HBAN), a regional bank holding company, is poised for outperformance over the next few years, according to its CEO, Steve Steinour. The bank's strong financial performance, strategic growth initiatives, and commitment to customer relationships and community engagement have positioned it well for continued success.



Huntington Bank's recent financial results have been impressive, with sequential revenue and profit expansion driven by accelerated loan growth and sustained deposit gathering. The bank's net interest income and fee revenues have increased, while its credit quality has remained strong. This performance is a testament to the bank's disciplined management and strategic focus on organic growth.



One of the key drivers of Huntington Bank's success is its focus on customer relationships and community engagement. The bank's purpose-driven orientation, centered around colleagues, customers, and communities, has fostered a culture of customer satisfaction and colleague engagement. This commitment has led to high customer satisfaction ratings, strong customer acquisition and retention rates, and high colleague engagement scores. Additionally, Huntington Bank's involvement in public-private partnerships and community initiatives has helped to build goodwill and strengthen its relationships with customers and the broader community.



Huntington Bank's strategic growth initiatives have also contributed to its outperformance. The bank has invested in new geographies and commercial verticals, which has helped it achieve peer-leading organic growth in both loans and deposits. This expansion has been supported by the bank's strong liquidity, capital, and credit position. Furthermore, Huntington Bank's teams have executed well in core businesses, managing overall funding costs lower and increasing fee revenues from payments, wealth management, and capital markets. This has resulted in record revenue for the capital markets team during the quarter.



Huntington Bank's commitment to maintaining a disciplined approach to managing credit quality has also been crucial to its success. The bank has maintained a moderate-to-low risk appetite, resulting in stable net charge-offs and improved nonperforming asset and criticized asset ratios. This focus on credit quality has supported a constructive outlook for the bank's credit performance.

In conclusion, Huntington Bank's strong financial performance, strategic growth initiatives, and commitment to customer relationships and community engagement have positioned it well for outperformance in the coming years. The bank's disciplined management, focus on organic growth, and purpose-driven culture have all contributed to its success. As Huntington Bank continues to execute on its strategic plan, investors can expect the bank to maintain its position of strength and deliver strong results in the years ahead.

Rating: Strong Buy.