01—Abstract
Summary
Summary of the 8-K filed December 11, 2024. Cited figures are marked; the original filing is the authoritative source.
Huntington Bancshares Incorporated (HBAN) furnished presentation slides under Item 7.01 for its participation at the Goldman Sachs 2024 Financial Services Conference on December 11, 2024, where Chairman, President and CEO Steve Steinour and CFO Zach Wasserman presented to analysts and investors.
The slides, attached as Exhibit 99.1, are furnished rather than filed for purposes of Section 18 of the Exchange Act. The presentation centers on organic growth, with 6.3%a annualized end-of-period loan growth in 3Q24 and average deposit growth of 5.6% year over year, and it highlights a down-beta deposit strategy, with cost of deposits down 29 bps from July to November 2024 and an expectation of record net interest income in FY25. Fee income growth is a major theme.
The company reports adjusted fee income up 12%b year over year, with Wealth revenue up 18%, Capital Markets up 50%, and Commercial Payments up 8%. Adjusted CET1 rose 90 bps year over year to 8.9%, the loan-to-deposit ratio fell to 80%, and year-to-date net charge-offs of 30 bps compared with a peer median of 42 bps. The allowance for credit losses stood at 1.93% of loans.
The company also cites branch expansion into North and South Carolina, with 55 planned builds there, and 21 in Colorado. For investors, the slides present a company guiding to higher net interest income and PPNR expansion into 2025, supported by fee growth and a credit profile the company describes as top quartile. The filing is a presentation rather than a financial results release, and its figures are management's own, including peer comparisons drawn from S&P Global Market Intelligence and company filings.
02—Key points
Key Highlights
- Presentation at the Goldman Sachs 2024 Financial Services Conference on December 11, 2024, by CEO Steve Steinour and CFO Zach Wasserman; slides furnished as Exhibit 99.1 under Item 7.01.
- Loan growth of 6.3% annualized (EOP) in 3Q24 versus a peer median of -1.3%; average deposit growth of 5.6% year over year versus a peer median of -0.8%.
- Cost of deposits down 29 bps from July to November 2024; company expects record net interest income in FY25 and approximately flat to modestly higher sequential NII in 4Q24E.
- Adjusted noninterest income up 12% year over year; Wealth revenue up 18%, Capital Markets up 50%, and Commercial Payments up 8% year over year.
- Adjusted CET1 up 90 bps year over year to 8.9%; loan-to-deposit ratio down to 80%.
- Top-quartile net charge-offs of 30 bps versus a peer median of 42 bps, with an allowance for credit losses of 1.93% of loans.
- Expansion into North and South Carolina and Texas, six new commercial verticals, and planned branch builds of 93 for 2025-2030.
03—Questions
Frequently Asked Questions
What did Huntington disclose in this 8-K filing?
Huntington furnished presentation slides for its appearance at the Goldman Sachs 2024 Financial Services Conference on December 11, 2024, attached as Exhibit 99.1. The slides are furnished under Item 7.01 and are not deemed filed for purposes of Section 18 of the Exchange Act.
How is Huntington's loan and deposit growth trending?
The company reports 6.3% annualized end-of-period loan growth in 3Q24 against a peer median of -1.3%, and average deposit growth of 5.6% year over year against a peer median of -0.8%. It also notes a quarter-to-date November 2024 loan increase of $3.1 billion and deposit increase of $2.1 billion.
What is management's outlook for net interest income?
Management expects approximately flat to modestly higher sequential net interest income in 4Q24 and anticipates record net interest income in FY25. It cites a 29 bps cumulative decline in monthly deposit costs since July, and continued benefit from fixed asset repricing.
How is Huntington's credit quality described?
The company describes its credit performance as top quartile, with net charge-offs of 30 bps year to date versus a peer median of 42 bps, and an allowance for credit losses of 1.93% of loans. Commercial real estate is 9.1% of total loans, and consumer loans are over 95% secured.
What drove fee income growth?
Adjusted noninterest income rose 12% year over year to $531 million in 3Q24, with growth led by Capital Markets (up 50%), Wealth (up 18%), and Commercial Payments (up 8%). Merchant acquiring was brought in-house, and the company expects sequential Capital Markets revenue growth in Q4.
04—Continue