Huntington Bancshares: Q4 Earnings Snapshot - A Tale of Resilience and Growth

As we step into the new year, let's take a look back at Huntington Bancshares' (HBAN) Q4 2024 earnings snapshot. The bank has weathered the storm and emerged stronger, with a compelling story of resilience and growth. Let's dive in and explore the key highlights.



Record Fees and Loan Growth

Huntington Bancshares reported strong Q4 2024 results, with earnings per share (EPS) of $0.34, up $0.01 from Q3 and $0.19 from the year-ago quarter. The bank achieved record fee income and significant loan growth, with net interest income increasing $44 million (3%) quarterly and $79 million (6%) yearly. This impressive performance is a testament to the bank's strategic execution and ability to navigate challenging market conditions.

Sustained Deposit Growth and Sequential Expansion of Net Interest Income

Huntington's sustained deposit growth and sequential expansion of net interest income can be attributed to several key drivers:

1. Successful deposit management strategy: The bank effectively managed its deposit costs, reducing them by 24 basis points to 2.16% in the fourth quarter of 2024 compared to the prior quarter. This reduction in deposit costs has contributed to the bank's ability to maintain and grow its deposit base.
2. Strong franchise value and customer acquisition capabilities: The bank's deposit growth of 7% year-over-year (YoY) to $9.8 billion demonstrates its ability to attract and retain customers, indicating a strong franchise value and customer acquisition capabilities.
3. Improved pricing power and relationship depth: The decrease in deposit costs amid a high-rate environment suggests that Huntington has improved its pricing power and deepened its relationships with depositors, enabling it to maintain and grow its deposit base.
4. Expansion into new geographies and commercial verticals: Huntington's expansion into new geographies and commercial verticals has yielded tangible results, as seen in the 4% sequential growth in commercial loans. This expansion has likely contributed to the bank's ability to attract and retain deposits from these new markets and segments.
5. Aggressive growth strategy with prudent risk management: Despite its aggressive growth strategy, Huntington has maintained stable credit metrics, including a nonperforming asset (NPA) ratio of 0.63%. This indicates that the bank has effectively managed risks associated with its growth strategy, contributing to its sustained deposit growth and net interest income expansion.



Strategic Execution and Future Outlook

Huntington's strategic execution in Q4 2024 showcases a well-balanced growth approach. The record fee income achievement, particularly in payments, wealth management, and capital markets, indicates successful diversification beyond traditional banking revenue streams. The 7% YoY deposit growth to $9.8 billion demonstrates strong franchise value and customer acquisition capabilities. The bank's expansion into new geographies and commercial verticals is yielding tangible results, evidenced by the 4% sequential growth in commercial loans. The decreased deposit costs amid a high-rate environment suggest improved pricing power and relationship depth. The stable credit metrics, including a 0.63% NPL ratio, reflect prudent risk management despite the aggressive growth strategy.

As we look ahead to 2025, Huntington's strategic investments and core business strength position it favorably for sustained growth. However, margin pressure and potential credit cycle shifts remain key monitoring points. The bank must remain vigilant and adapt to potential challenges to maintain its momentum.

In conclusion, Huntington Bancshares' Q4 2024 earnings snapshot paints a picture of resilience and growth, with the bank successfully navigating market challenges and emerging stronger. With a well-balanced growth approach and a strong focus on strategic investments, Huntington is poised for sustained growth in 2025.