Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Investor Day (November 2022)
142 slides from Huntington Bancshares's investor day presentation, Nov 10, 2022
Slide 1: 2022 Investor Day
2022 Investor Day November 10, 2022
Slide 2: Safe Harbor and Forward-Looking Statements
Safe Harbor and Forward-Looking Statements CAUTION REGARDING FORWARD-LOOKING STATEMENTS This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to nu
Slide 3: Welcome and Opening Remarks
Welcome and Opening Remarks Tim Sedabres EVP, Head of Investor Relations
Slide 4: Today's Agenda
Today’s Agenda 8:30 AM Welcome and Opening Remarks 10:45 AM Break Tim Sedabres | EVP, Head of Investor Relations 10:55 AM Technology Company and Strategy Overview Technology Strategy and Execution Fuels Scale and Product Distinctiveness To be the Leading People-First, Digitally Powered Bank Paul Hel
Slide 5: Energized Leadership Team with a Track Record of Strong Execution
Energized Leadership Team with a Track Record of Strong Execution Steve Steinour Brant Standridge Sandy Pierce Scott Kleinman Today’s Chairman, President, SEVP and President, Consumer SEVP, Private Client Group SEVP and President, Presenters and CEO and Business Banking and Regional Banking Director
Slide 6: Company and Strategy Overview
Company and Strategy Overview To be the Leading People-First, Digitally Powered Bank Steve Steinour Chairman, President, and CEO
Slide 7: Compelling Investment Opportunity
Compelling Investment Opportunity 1 2 3 4 5 Our culture and Powerful Broad-based Focused and Uniquely purpose drive franchise with organic growth disciplined positioned to outperformance distinguished opportunities execution deliver substantial brand and value creation reputation To be the Leading P
Slide 8: Leading Midwest Regional Bank with Scaled, National Businesses
Leading Midwest Regional Bank with Scaled, National Businesses Compelling Results $180B $146B $117B Assets Deposits Loans and Leases ✓ Top 20 U.S. Bank by Deposits ✓ $8B Revenue (run-rate) Established Market Leadership ✓ Top-tier return profile with Industry Leading Consumer and Business Franchise M
Slide 9: Building on a Strong Foundation to Drive Market-Leading Customer Engagement and Profitable Growth
Building on a Strong Foundation to Drive Market-Leading Customer Engagement and Profitable Growth 2023+ Where We Are Going • Expand strong, quality deposit base 2009 - 2014 2015 - 2022 • Maximize colleague engagement and customer experience Where We Were Where We Are • Leverage broader scope of grow
Slide 10: Winning with Differentiation
Winning with Differentiation Culture Brand Technology & Innovation Growth Opportunities • Top-tier Talent • Trust and NPS • Award Winning Digital • Strategic Growth Initiatives • Colleagues are our Brand • Local Model • Continuous Launch of Disruptive Products • TCF Revenue Synergies • Passion for C
Slide 11: Our Colleagues Drive Outperformance
Our Colleagues Drive Outperformance PURPOSE We make people’s lives better, help businesses thrive, and strengthen the communities we serve VISION To be the Leading People-First, Digitally Powered Bank Purpose and Vision Linked to Business Strategies 11
Slide 12: Our Commitment to ESG in Transformational Times
Our Commitment to ESG in Transformational Times Environment Social Governance Driven by Engagement • Appointed Climate Risk and • $40B Community Plan with • 100% committees chaired by Environmental Strategy and $7.6B in loans made to low- independent Directors with Key Stakeholders Sustainability Di
Slide 13: Engaged and Diversified Board of Directors
Engaged and Diversified Board of Directors Lizabeth Ardisana Alanna Cotton Ann “Tanny” Crane Skills Matrix Owner and CEO, President and Chief Business Officer President and CEO, ASG Renaissance Ferrero North America Crane Group Company Joined: 2016 2019 2010 Strategic Planning/M&A 100% Robert Cubbin
Slide 14: Leading Brand is a Key Source of Competitive Strength
Leading Brand is a Key Source of Competitive Strength #1 #1 #1 Trust NPS Satisfaction Trustworthiness Net Promoter Score Overall Customer Satisfaction Huntington Huntington Huntington Bank 1 Bank 1 Bank 2 Bank 2 Bank 3 Bank 1 Bank 3 Bank 5 Bank 5 Bank 4 Bank 2 Bank 3 Bank 5 Bank 4 Bank 6 Bank 6 Bank
Slide 15: Well-Positioned for Industry Trends
Well-Positioned for Industry Trends Industry Trends Strong Capabilities to Drive Consistent, Profitable Growth Macro Leading from High quality, stable Scaled, national Rising rates, economic Strong fee growth uncertainty position of strength deposit base supports verticals and specialty opportunitie
Slide 16: To be the Leading People-First, Digitally Powered Bank
To be the Leading People-First, Digitally Powered Bank Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile profitable growth customer experience performance and value creation Foundational Strategic Pillars Supporting Execution and Value Creation Across the
Slide 17: Medium-Term Targets Driven by Strategic Initiatives Across the Bank
Medium-Term Targets Driven by Strategic Initiatives Across the Bank Updated Medium-Term Financial Targets Consumer and Business Commercial Banking PPNR Positive Growth Operating • Consumer Bank with Scale and Density • Strength in Middle Market, 6 – 9% Leverage Corporate, and Specialty Banking • Bus
Slide 18: Consumer Banking
Consumer Banking Making Banking Easier to Grow and Deepen Relationships Brant Standridge SEVP and President, Consumer and Business Banking
Slide 19: Consumer Banking Key Messages
Consumer Banking Key Messages 1 2 3 4 Continuing Extending our Providing more Investing in digital industry-leading local model and comprehensive engagement and a customer brand presence by banking solutions more advice checking further investing to our customers centered interaction acquisition in
Slide 20: Consumer Banking Has Several Points of Differentiation
Consumer Banking Has Several Points of Differentiation Developed a brand with a top customer switching preference and that our customers trust Established position in customer acquisition and digital adoption Earned national recognition for customer experience in service and mobile Created a reputat
Slide 21: Foundation of Industry Leading Brand and Capabilities
Foundation of Industry Leading Brand and Capabilities 49% of 21% of $72B Deposits HBAN’s total $25B HBAN’s total $827M 42% of HBAN’s total Loans Fee Revenue (YTD annualized) Midwest Leadership in Footprint… $429M ...With Established Scale And Scope YTD Fee Revenue #1 Branch Share 3.6M 3.1M 1,032 66%
Slide 22: Customer Acquisition Driving Continued Growth Across Footprint
Customer Acquisition Driving Continued Growth Across Footprint Total Average Deposits ($B) Total Average Loans ($B) $72.1 $62.0 $41.6 $44.0 $25.1 $35.7 $38.2 $21.0 $16.8 $17.0 $16.5 $15.4 2017 2018 2019 2020 2021 3Q22 2017 2018 2019 2020 2021 3Q22 Customer Acquisition Leadership • Driving High Quali
Slide 23: Ongoing Targeted Investments in Key Enablers Drive Our Success
Ongoing Targeted Investments in Key Enablers Drive Our Success Investments in Fair Play Approach… 1 Product Innovation 3.1M Checking 2 Brand Positioning and Marketing Households #1 in the following areas among in market competitors1: 2022 Instant • Trust Access • NPS 2021 • Customer-Focused 3 Servic
Slide 24: Trends Informing Our Strategy
Trends Informing Our Strategy Banks Reduce Convenience Digital Preference Digital Acquisition Demand for Human Advice Reduced access to service and Customers self-directed to open Less quality than relationships Remains high for more product elimination relationships online originated in branches co
Slide 25: How We Will Win
How We Will Win Creating The Innovative and Business Expanding digital Leveraging product differentiation to Distinctive Bank of capabilities to further drive household acquisition Products For All Choice scale expertise People Growing Primary1 Consumer Household Maximizing Relationships Customer To
Slide 26: Harnessing the Value of the Branch Network
Harnessing the Value of the Branch Network Meeting Our Customers Where They Are Customer Interactions Transforming Branch Network Increasingly Digital What We’ve Done Roadmap ✓ 765 million mobile and ✓ 2021: Closed 188 branches; divested 14 associated ✓ Closing 11% of branches over next 5 years2 des
Slide 27: Customer Growth and Digital Traffic Create a Deepening Opportunity
Customer Growth and Digital Traffic Create a Deepening Opportunity Huntington has organically acquired Tremendous deepening opportunity Leverage reputation for service 1.2M checking households exists among our 3.6M customers via excellence to increase trust in over the past five years digital and in
Slide 28: Strategic Initiative to Digitally Deepen and Engage
Strategic Initiative to Digitally Deepen and Engage The Opportunity Outcome Goal Create an engaging Average annual digital Share of Wallet by e-commerce customer experience interactions per acquisition channel Deposits customer 4 Innovation Areas: +10% 15.4% Driving primacy Making it easy 765 per Ho
Slide 29: A Place to Easily Find and Buy Our Solutions
A Place to Easily Find and Buy Our Solutions Focused Feature: Huntington Marketplace Compelling HBAN Solution Outcomes Purpose ✓ Easy for customers to Create a compelling digital Shopping Experience find and shop our • Marketplace to shop for new products and solutions products • Streamlined account
Slide 30: Research and Decision-Making
Human Advisor-Based Model Interactive and Accessible Through Our Digital Channel Our Journey Began with Defining the Customer Persona We’re Building for… High Our Target 28% “Self Directed” 69% “Validators” and “Delegators” Research and Decision-Making Validators • Seek validation on investment deci
Slide 31: Providing Insights, Guidance, and Advice
Providing Insights, Guidance, and Advice Goals Opportunity Target CustomerInnovation Outcomes Highlights Scaling our delivery of advice Exclusively rewards wealth customers with extends our position with customers SmartInvest best rates, no banking for long-term relationship depth fees, and enhanced
Slide 32: Consumer Banking Key Pillars
Consumer Banking Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Customer Acquisition Focused Innovation Roadmap Execution and Digital Deepening • Leverage leadership positi
Slide 33: Wealth Management
Wealth Management Delivering Advisory Expertise and Enhancing Digital Capabilities to Capture Significant Opportunity Sandy Pierce SEVP, Private Client Group and Regional Banking Director
Slide 34: Wealth Management at Huntington
Wealth Management at Huntington Affluent High Net Worth Huntington Wealth Management Highlights1 Huntington Financial Advisors Private Bank 22K Top Quartile Top Quartile 21K Relationships AUM Revenue Relationships Growth Growth $4B <1.5% Attrition Rate2 $20B AUM AUM Served in +TCF New Served in All
Slide 35: Unified Advisory Converging Consumer Bank and Wealth Management
Unified Advisory Converging Consumer Bank and Wealth Management Consumer Bank Unified Wealth Management Advisory Our Target Investment Advisory • Build on sweet spot of customers who Penetration Rate 1) Validators seek validation on desire advisory services investment decisions 3 - 5% • Opportunity
Slide 36: Unified Advisory | Enabling Our Customers
Unified Advisory | Enabling Our Customers Digital and Product Enablement Smart Total Wealth Advisor Invest Dashboard Connect 36
Slide 37: Track Record of Consistent Organic Growth Across Comprehensive Solutions
Track Record of Consistent Organic Growth Across Comprehensive Solutions New Business Sales $1M+ Wealth AUM ($B) (Revenue) ($M) Management Relationships $27.0 $24.2 $18.9 $15.0 5% CAGR 13% CAGR 4% CAGR Personalized Investment Trust and 2017 3Q22 2017 2022 YTD 2017 3Q22 Financial Management Estate Pl
Slide 38: Wealth Management Key Pillars
Wealth Management Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Customer Acquisition and Innovation with Local Model Execution Deepening • Innovate and accelerate digital
Slide 39: Business Banking
Business Banking Expanding and Accelerating Our Business Banking Franchise Brant Standridge SEVP and President, Consumer and Business Banking
Slide 40: Business Banking Key Messages
Business Banking Key Messages 1 2 3 4 Starting from a Investing in digital Harnessing Growing by position of capabilities to efficiencies and scaling in select strength with enable customers streamlining areas of expertise differentiators to access to capital capture sizeable through credit opportun
Slide 41: Starting from a Position of Strength
Starting from a Position of Strength Developed a distinctive brand, earning national recognition for Ease of Doing Business, Trust and Value of Long-Term Relationship1 Established reputation for small business acquisition expertise in providing access to Capital Markets, Treasury Management, Practic
Slide 42: Established Reputation as the Business Bank of Choice
Established Reputation as the Business Bank of Choice 6% of $22B Deposits 15% of HBAN’s total $7B Loans HBAN’s total $192M 10% of HBAN’s total Fee Revenue (YTD annualized) Business Checking Established Leader & Innovator Our Customers Households Scale and Scope1 • Privately-held companies 375K • Wid
Slide 43: Leading Position with Strong Deposit Quality
Leading Position with Strong Deposit Quality Key Sustainable Differentiators Quality Deposit Franchise and Strong Loan Portfolio Total Average Deposits ($B) Business Banking Deposits Distinctive Brand $21.8 (as of 3Q22) Grow Digital $19.2 Acquisition Savings & (over past 3 years) Other 23% $13.0 0%
Slide 44: Investing to Unlock Significant Opportunity and Access the Untapped Market
Investing to Unlock Significant Opportunity and Access the Untapped Market Growing Primary Business Households Digitally Enable the Treasury Accelerating Scale in Select 2-3% annually Business Owner Management Credit Process Areas of Expertise Modernization Driving engagement Supports customers Leve
Slide 45: Digitally Enable the Business Owner To Maximize Engagement
Digitally Enable the Business Owner To Maximize Engagement Background Unique Huntington Solution Results in: Initiate and accept Gain transparency payments quickly, • Jeanine is a small business into overall During easily, and safely ✓ Increase customer lifetime owner and Huntington financial health
Slide 46: Accelerate Credit Process Modernization
Accelerate Credit Process Modernization Current State Strategic Focus Areas Results in: Investing in Credit Workflow System to Drive: • Strong credit process model • High volume, people, policy • and process intensive Competitive service levels 1 Customer Experience • Faster turnaround times, stream
Slide 47: Scale in Select Areas of Expertise
Scale in Select Areas of Expertise Practice Finance SBA • Launched in 2018 focused on Dental and • #1 SBA Lender in the Nation1 Veterinary Finance • Nationwide Expansion for SBA 7a • 82% Deposit Penetration completed 1Q22 Proven strength in • 61% Primary Bank Relationships • Market Expansion Post-TC
Slide 48: Business Banking Key Pillars
Business Banking Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Customer Acquisition and Business Bank of Choice Execution Deepening • Scale in select areas of expertise in
Slide 49: Commercial Banking
Commercial Banking Serving the Needs of Businesses and Institutions across the Nation through Our Commercial Bank Scott Kleinman SEVP and President, Commercial Bank
Slide 50: Commercial Banking Key Messages
Commercial Banking Key Messages 1 2 3 4 Competitive Well-positioned to Clear strategy to Digital and differentiators to address industry capture significant technology drive sustained trends by delivering regional and investments to industry capabilities and national growth acquire and deepen leader
Slide 51: Serving the Needs of Businesses and Institutions Across the Nation
Serving the Needs of Businesses and Institutions Across the Nation $37B 25% of HBAN’s total $53B Loans 45% of HBAN’s total $637M 32% of HBAN’s total Fee Revenue (YTD annualized) Deposits Proven Commercial Optimization and Growth... …With Significant Scale and Reach Where We Were (2010) Where We Are
Slide 52: Consistent Growth and Strong Expertise Across Platform
Consistent Growth and Strong Expertise Across Platform Total Average Deposits ($B) Total Average Loans ($B) Industry Leading Expertise $53.3 Mid Market, CRE Corporate & $38.0 Specialty Specialty Banking $36.6 25% 36% $29.4 • Top 6 Franchise Lender1 $25.0 $26.1 $27.1 $27.2 $21.2 $22.2 $21.2 $23.4 • T
Slide 53: Achieving Scale Across Diverse Set of Commercial Solutions
Achieving Scale Across Diverse Set of Commercial Solutions Capital Focused on High Growth, High Return Businesses Middle Market Markets Returns Commercial Corporate Treasury Capital Real Estate Commercial and Specialty Management Markets High Banking Middle Banking Asset Corporate Market and Finance
Slide 54: Trends Informing Our Strategy
Trends Informing Our Strategy Secular Trends Ownership Transition Sustainability Digital Transformation Expertise, technology, and automation Companies pursuing transition or M&A And climate change driving demand Foundational expectations Well-Positioned to Execute Scale, penetration, Strategic inve
Slide 55: Building on Our Foundation
Building on Our Foundation Key Results 1 Acquire • Scale the existing markets, leverage new and expanded Relationships markets of MN, CO, Chicago, and Detroit Primary bank relationships First Operating deposits 2 Deepen • Drive primary bank relationships through data and analytics 3 Industry Focus •
Slide 56: Specialty Banking Meeting the Rising Expectations of Our Customers
Specialty Banking Meeting the Rising Expectations of Our Customers Strategic Focus Areas Specialty Banking $8.2B Strategic Focus Areas Target Goals Loan Balances +$7.7B growth 1 National Addressable Market 2x Growth ▪ Tech & Telecom • 3x faster C&I growth than industry C&I growth Loans and Deposits
Slide 57: Leveraging Scale and Expertise in Asset Finance Businesses
Leveraging Scale and Expertise in Asset Finance Businesses Opportunity to Drive Continued Growth and Momentum $20.6B Asset Finance1 Target Goal Loan Balances • TCF +$20.2B growth • Macquarie Equipment Finance +10% Loan Growth (5-year CAGR) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 58: Expanding Capital Markets
Expanding Capital Markets Capital Market Fees ($M) Capital Market Capabilities $225 Debt and $151 M&A / $125 Syndicated Equity $123 Finance Advisory / $108 Capital Other $90 Markets Public Fixed Income Financial Risk Finance / Sales and Management Municipal Trading 2017 2018 2019 2020 2021 2022 YTD
Slide 59: Climate Finance
Climate Finance Partner with Clients as They Reduce Their Carbon Footprint Background Solutions Market Opportunity Market Approach • Large capital provider to renewable energy projects +$500M in funded exposure Scale and Expand • Energy Efficiency • #5 bank-owned equipment finance $575B Scale: Conti
Slide 60: Optimization and Value Creation from Digital Transformation
Optimization and Value Creation from Digital Transformation Sales and Lending Service Transact Channels Onboarding • Drive insights with • Accelerate credit • Create a consistent • Simplify cross border • Drive ease of use EDGE decisioning support model across all payments and liquidity • Meet and d
Slide 61: Commercial Banking Key Pillars
Commercial Banking Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Customer Acquisition and Expertise and Capabilities Execution Digital Deepening • Target markets / clients
Slide 62: Enterprise Payments
Enterprise Payments Capturing Significant Growth Opportunities in Payments Amit Dhingra EVP, Head of Enterprise Payments
Slide 63: Enterprise Payments Key Messages
Enterprise Payments Key Messages 1 2 3 4 Accelerating Achieving organic Enhancing Heightening focus progress with growth through product offerings on innovation further reach and greater share of and user and strategic selective scale customer wallet experience partnerships Well-Positioned to Captur
Slide 64: Enterprise Payments: A Comprehensive Set of Solutions for All Customers
Enterprise Payments A Comprehensive Set of Solutions for All Customers Consumer Business Mid-Market Corporate Card • Credit, Debit, Commercial Cards Treasury Management • Payables • Receivables Select Examples Business to Consumer • ChoicePay (Torana) • Virtual Cards Payment Platforms • Zelle, Real
Slide 65: Strong Payments Presence Supports Further Expansion
Strong Payments Presence Supports Further Expansion $585M Fee Revenue (YTD annualized) 30% of HBAN’s total ~$2.3T Payments Annually Processed #2 MasterCard Debit Issuer 1 Proven Payments Optimization and Growth Selective Scale and Growth Fee Income ($M) Credit Card, 16% $518 $585 94% Zelle Growth2 $
Slide 66: Trends Informing Our Strategy
Trends Informing Our Strategy Digital Transformation Evolving Space Increased Payment Scale Necessary Shaping customer expectations With increasing competition & Credit Options To compete in certain value pools and modernization Well-Positioned to Execute Digitally enabling colleagues Strong brand E
Slide 67: How We Will Win | Card
How We Will Win | Card Consumer Medium-Term Target Goals Product Solutions 2.7X Extend leadership Address customer needs with 1.3X position in debit usage relevant offerings With Debit Card With Credit Card Enhanced Capabilities Focus on total relationship Incremental Consumer HH Value with Payment
Slide 68: How We Will Win | Treasury Management
How We Will Win | Treasury Management Integrated Payables Total Spend ($B) Target Goal 55% CAGR Treasury Management Customer Product Sales Penetration Connectivity Solutions Advice 2020 2021 2022 YTD Interact in the way to meet customer to address customer annualized customers choose needs pain poin
Slide 69: How We Will Win | Business to Consumer
How We Will Win | Business to Consumer Delivering Innovative Business to Consumer Payments Solutions through fintech Torana Acquisition Outcomes Want to pay ✓ Seamless, efficient, digital disbursement customers in modern, ✓ Deepen relationships ✓ Simple and easy for customers to choose Businesses ef
Slide 70: Enterprise Payments Key Pillars
Enterprise Payments Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Customer Relationships and Expertise and Capabilities Execution Digital Deepening • Deepen relationships
Slide 71: Vehicle Finance
Vehicle Finance Powerful Franchise Opportunity Delivering Sustainable Results Through the Cycle Rich Porrello EVP and President, Vehicle Finance and Dealer Services
Slide 72: Vehicle Finance Key Messages
Vehicle Finance Key Messages 1 2 3 4 Delivering Leveraging scale Deepening and Achieving sustainable to drive monetizing top quartile profitable growth operational customer performance efficiency relationships with industry leadership Proven Ability to Deliver Growth and Returns Through the Cycle 72
Slide 73: Track Record of Vehicle Finance Leadership and Growth
Track Record of Vehicle Finance Leadership and Growth $22B 19% of HBAN’s total 0.04% Average NCOs (YTD) 780 Average FICO Loans Vehicle Finance Average Loans ($B) and % of Total Loans Strong and Unique Business Model1 $22.0 770 $16.9 10-year Indirect Auto Portfolio $13B average FICO 25% Commercial (L
Slide 74: Unified Business Model Delivers Full Product Suite Across Client Segments
Unified Business Model Delivers Full Product Suite Across Client Segments Indirect Auto / RV/Marine Commercial Relationships Auto: $13B (11% of total loans) Dealer $6B Commitments RV/Marine: $6B (5% of total loans) Relationships $3B Outstanding • Top 10 bank auto loan lender • A top ROTCE commercial
Slide 75: Proven Track Record of Strategic Growth
Proven Track Record of Strategic Growth Optimize Through the Cycle Know when to pull and press on production to maximize returns Indirect Auto Production ($B) and Average Yield $1.9 $1.9 4.7% $1.8 $1.8 $1.8 4.8% 4.6% 4.6% 4.6% $1.7 $1.7 $1.6 $1.6 $1.6 $1.6 $1.5 $1.4 $1.4 $1.4 $1.4 $1.4 $1.4 $1.3 3.8
Slide 76: Disciplined Execution Through the Cycle Enables Strategic Geographic and Product Expansion
Disciplined Execution Through the Cycle Enables Strategic Geographic and Product Expansion Successful Track Record of Measured Expansion 2009 2016 2022 PowerSports Launch Auto 7 states 23 states 30 states ~$1.0B RV / Marine -- 26 states 35 states Loan Balances PowerSports (New) -- -- 17 states launc
Slide 77: Auto - Strong Credit Performance Through the Cycle
Auto - Strong Credit Performance Through the Cycle Auto % of Total Loans $13.6 Key Highlights of Credit Strength $12.5 $12.9 $12.9 $13.4 $12.2 $11.0 Strong Credit Quality $8.7 $9.5 Auto Loans and % $6.7 18.3% 18.8% 17.5% 17.1% • Industry knowledge and focus on rigorous 16.4% 16.7% 15.8% 15.6% of Tot
Slide 78: Leveraging Industry Expertise and Unified Model to Grow and Deepen Dealer Relationships
Leveraging Industry Expertise and Unified Model to Grow and Deepen Dealer Relationships Opportunity Proven Success with Unique Solutions Results In ✓ Dealer relationship began in 2012 with a total of $31M of initial financing Leverage expertise, Winning primary ✓ Expertise, solutions, and scale help
Slide 79: Vehicle Finance Key Pillars
Vehicle Finance Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Geographic / Product Expansion Expertise and Capabilities Execution • Expand opportunistically with auto and
Slide 80: Q&A
(2) Huntington Q&A
Slide 81: Break
(2) Huntington Break
Slide 82: Technology
Technology Technology Strategy and Execution Fuels Scale and Product Distinctiveness Paul Heller SEVP, Chief Technology and Operations Officer Prashant Nateri EVP, Chief Transformation Officer
Slide 83: Technology Key Messages
Technology Key Messages 1 2 3 4 Investing in digital Leveraging agile Accelerating Simplifying capabilities across and flexible core customer customer the enterprise infrastructure acquisition and journeys through deepening with Operation data and analytics Accelerate Enabling Best-in-Class Customer
Slide 84: Technology Strategy Supported by Accelerated Investments
Technology Strategy Supported by Accelerated Investments Technology Investments: Then and Now Investments • Driving revenue growth • Improved customer experience 2x +23% CAGR • Business specific digital roadmaps • Internal process efficiency improvements of Investments / Transform the Bank Run the B
Slide 85: Investments Resulting in Broad Based Digital Innovation
Investments Resulting in Broad Based Digital Innovation Recent and Planned Digital Roadmap Launches Across the Enterprise Consumer Banking Business Banking Commercial Banking Payments Vehicle Finance • 10 new major products • New mobile app • EDGE Digital tool • B2C / ChoicePay • Digital onboarding
Slide 86: Agile and Flexible Core Infrastructure Enabling Scale and Efficiency
Agile and Flexible Core Infrastructure Enabling Scale and Efficiency Enabling Key Business Initiatives Outcomes ✓ “Hollowing out core” with modular technology stacks Cost Synergies: $80M+ run-rate reduction from TCF, huge scale benefits over time ✓ API development Speed to Market ✓ Acceleration of c
Slide 87: Data and Analytics Accelerating Customer Acquisition and Deepening
Data and Analytics Accelerating Customer Acquisition and Deepening Generating Insights Personalization Decision Engine CRM • Robust aggregation of data • Personalized marketing, • Customer insights delivered • Unify data to elevate • Real-time decision making advice, and expertise across all busines
Slide 88: Operation Accelerate
Operation Accelerate Transforming Customer and Colleague Experience, Driving Efficiency and Revenue
Slide 89: What is Operation Accelerate?
What is Operation Accelerate? Clear Goals to Create Customer and Shareholder Value A holistic approach to enable the bank to significantly scale effectively and efficiently while transforming our colleague and customer experience Increasing Lowering Increasing Revenue Cost Satisfaction Simplify | Re
Slide 90: Operation Accelerate Strategic Framework
Operation Accelerate Strategic Framework Improve the Customer Experience through Guiding Outcomes: Principles: Automation, Simplification, and Efficiencies ✓ Customer and ✓ Simplification colleague experience ✓ Speed and agility ✓ Scale and deepening ✓ Digitization in ✓ Unlocked productivity everyth
Slide 91: Business Bank Deposit Account Journey
Business Bank Deposit Account Journey Providing a simple, convenient Account Opening Experience that will scale Simplify Flexibility to open an account • Optimize online 45% online or in a branch application flow Reduction On-demand customer service Speed • Automate & enable paperless 50% Customers
Slide 92: Opportunity to Drive Significant Revenue and Expense Benefits
Opportunity to Drive Significant Revenue and Expense Benefits Overview: Targeted Impacts • Started in Nov 2021; Collection of 21 defined journeys • Initial scope completed for 9 journeys; Execution on Net PPNR Run-Rate initiatives in progress ~$150M • Business Banking Loan Origination (including rev
Slide 93: Technology Key Pillars
Technology Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Bedrock Technology Foundation Talent and Emerging Technologies Speed, Quality, and Efficiency • Leverage scalable
Slide 94: Risk and Credit
Risk and Credit Aggregate Moderate-to-Low Risk Appetite Sets Foundation for Sustainable Profitable Growth Helga Houston SEVP, Chief Risk Officer Rich Pohle EVP, Chief Credit Officer
Slide 95: Risk Management Key Messages
Risk Management Key Messages 1 2 3 Clearly established Strong risk Well-positioned aggregate management with scalable risk moderate-to-low culture permeates processes and risk appetite the company controls Disciplined and Consistent Risk Management Supports Strategy 95
Slide 96: Established Holistic Risk Governance Approach
Established Holistic Risk Governance Approach Risk Appetite Risk Culture Risk Framework Aggregate moderate-to-low Everyone owns risk Clear lines of defense through the cycle • Set strategies to ensure we are • All employees are encouraged and First: Revenue generating business leaders operating with
Slide 97: Risk Management Focus is Forward-Looking
Risk Management Focus is Forward-Looking Disciplined Risk Management Ensuring Scalability for Growth Market, Liquidity, Technology and Credit Compliance Operational Climate Capital Cyber Security • Relationship Based • Proactive Balance • Outstanding CRA • End to End • Simplify and Scale • Dedicated
Slide 98: Intentional Approach to Risk Management Results in Sound Credit Performance
Intentional Approach to Risk Management Results in Sound Credit Performance CCAR Cumulative Loan Losses as a % of Average Total Loans1 2020 2015 2016 2017 2018 2020 Resubmission 2022 HBAN 4.2% Peer 1 4.4% Peer 1 4.2% Peer 1 5.2% HBAN 5.1% Peer 1 5.9% Peer 1 5.7% Peer 1 4.5% Peer 2 4.8% Peer 2 4.3% H
Slide 99: Credit Risk Management
Credit Risk Management Credit Approach Supports Prudent Portfolio Growth
Slide 100: Credit Risk Management Key Messages
Credit Risk Management Key Messages 1 2 3 Disciplined credit Robust credit Clearly defined approach through alignment across company-wide the cycle business lines credit risk management metrics Credit Risk Processes Drive Adherence to Through the Cycle Aggregate Moderate-to-Low Risk Appetite 100
Slide 101: Disciplined Concentration Framework Results in Consistent Credit Performance
Disciplined Concentration Framework Results in Consistent Credit Performance Industries • Limits on industries and sub-industries based on inherent cyclicality, subject matter expertise, and other factors Portfolios • Portfolio limits and sub-limits based on cyclicality, historic loss rates, and oth
Slide 102: Diversified and Balanced Portfolio Prioritizes Credit Quality
Diversified and Balanced Portfolio Prioritizes Credit Quality Loan Portfolio Mix (ADB) Consumer Commercial RV/Marine Consumer All Other C&I 2% 10% $52B Auto Floorplan Asset Finance 32% Residential 5% Business 41% Mortgage 45% Banking 9% Auto 26% 55% 25% 27% Mid Market, 20% CRE Corporate, and All Oth
Slide 103: Preparing for Economic Uncertainty
Preparing for Economic Uncertainty Enter current Actively engaged with Implemented modest Consumer lending Supporting customers environment from a customers to navigate adjustments to our guidelines modified through economic position of strength higher inflation and commercial front-end • Reduced so
Slide 104: Risk Management Key Takeaways
Risk Management Key Takeaways 1 2 3 Clearly established Strong risk Well-positioned aggregate management with scalable risk moderate-to-low culture permeates processes and risk appetite the company controls Disciplined and Consistent Risk Management Supports Strategy 104
Slide 105: Culture and Colleagues
Culture and Colleagues A Strong Culture Can Create Long-Term Value Raj Syal SEVP, CHRO
Slide 106: Culture and Colleagues Key Messages
Culture and Colleagues Key Messages 1 2 3 4 Connecting Engaging, Making Driving colleague and developing, Huntington the outperformance customer retaining, and best place our through culture experience attracting the colleagues will and DE&I best talent ever work Prioritizing Experience, Top Talent,
Slide 107: Huntington's Cultural Journey
Huntington’s Cultural Journey Welcome All One Huntington Community Connection • Growth for all colleagues • Highly engaged colleagues • Our colleagues are our • Integration of acquired through vision, values, and brand and live our values cultures purpose to be better as One • Continued service and
Slide 108: Our Culture, Trust, and Engagement Are Differentiators
Our Culture, Trust, and Engagement Are Differentiators Colleague Experience 2022 Survey Results DE&I Leadership Engrained in Talent Strategy 90th % 90th % 73rd % Ethnically Diverse Culture Trust Engagement 24% White • Segment and Regional Culture Champions • Performance goals aligned to our values a
Slide 109: Purpose Drives Performance: Continually Investing in Colleagues
Purpose Drives Performance Continually Investing in Colleagues Top Quartile in Key Retention and • Tuition pre-imbursement / expanded scholarship program Attraction Metrics Two Years in a Row2 • 100% of colleagues have incentive opportunities Involuntary Turnover Average Time to Fill (Days) Incentiv
Slide 110: Proactive Talent Investments
Proactive Talent Investments Exact Track - Business Program for Continued Education “Game-changer.” “Continued development.” ”Valuable.” “Apply it in “It’s like a real-life case real time.” study when I’m able to “The courses, the people, solve Huntington business “There has been a good the process,
Slide 111: Ensuring Strategic Execution with Clear Success Criteria
Ensuring Strategic Execution with Clear Success Criteria Clear Milestones and Targets Maintain equitable average base salary Score in 99th percentile on the culture Voice levels for women and ethnic minorities Pay Equity index in annual colleague survey as with men and non-minorities Survey Leaders
Slide 112: Culture and Colleagues Key Pillars
Culture and Colleagues Key Pillars Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Top-Tier Talent Colleagues are our Brand Pay for Performance • Engage, develop, retain, and attract •
Slide 113: Financial Outlook
Financial Outlook Consistent Top Quartile Financial Performance and Compounding Value Creation Zach Wasserman SEVP, CFO
Slide 114: Financial Outlook Key Messages
Financial Outlook Key Messages 1 2 3 4 5 Delivering results Uniquely Executing on Optimizing capital Well-positioned with proven track positioned to highly prioritized allocation to to reach financial record to drive create value as growth achieve top targets growth and top regional bank investments
Slide 115: Proven Track Record of Financial Performance and Execution
Proven Track Record of Financial Performance and Execution Total Revenue ($B) Pre-Provision Net Revenue1 ($B) ROTCE % (Adjusted)1 $3.0 20% Thousands $7.1 18% 19% $6.0 $2.3 17% $2.0 15% $4.8 $1.9 $2.0 Covid 17.6% $4.4 $4.6 $4.7 $1.8 Impacted ex-AOCI 9% 2017 2018 2019 2020 2021 YTD22 2017 2018 2019 20
Slide 116: Execution Resulting in Financial Outperformance Versus Peers
Execution Resulting in Financial Outperformance Versus Peers ROTCE % (Adjusted, ex-AOCI)1 Adjusted Efficiency Ratio1 Annualized PPNR / Avg. Assets1 NCO / Loans YTD 3Q22 YTD 3Q22 YTD 3Q22 YTD 3Q22 Peer 1 Peer 1 Peer 1 Peer 7 Peer 2 HBAN 56.5% HBAN 1.7% HBAN 0.08% Top Quartile HBAN 17.6% Peer 5 Peer 5
Slide 117: Competitive Enablers of Long-Term Value Creation
Competitive Enablers of Long-Term Value Creation Accomplishments Disciplined Strength and ✓ Delivered top-tier return on capital capital recognition • Optimizing capital allocation allocation of brand ✓ Sustainable revenue growth • Self-funding revenue producing initiatives Value ✓ Positive operatin
Slide 118: Clear Path to Deliver Sustainable Revenue Growth
Clear Path to Deliver Sustainable Revenue Growth Illustrative Contribution of Medium-Term Revenue Growth Vehicle Finance Wealth Mgmt Deliver superior Payments credit performance Increasing Business Banking through the cycle, Grow share of wallet penetration Leverage SBA scale through enhanced throug
Slide 119: Focused on Driving Value from TCF
Focused on Driving Value from TCF ✓ Executed close (< 6 months) and conversion (4 months post close) with pace and quality Delivering on ✓ Delivered cost synergies by Q2 2022, earlier than expected Commitments ✓ 2x Tech Dev Investment from 2019 to 2022 ✓ Generated top quartile returns and efficiency
Slide 120: Well-Positioned with Stable, High Quality Deposit Base
Well-Positioned with Stable, High Quality Deposit Base Average Deposits ($B) 2017 3Q22 $146.0 DDA + Checking 44% 51% $124.3 49% 56% All Other $91.9 ✓ Improved deposit mix from time deposits to $82.3 $77.0 $80.2 relationship-based deposits ✓ Disciplined deposit pricing and controlled beta ✓ Focused o
Slide 121: Diversified Loan Portfolio and Attractive Mix
Diversified Loan Portfolio and Attractive Mix ✓ Consistent growth over time Average Loans ($B) $117.0 ✓ Disciplined client selection ✓ Strong underwriting methodology $96.8 ✓ Diversified loan book Loan Portfolio Mix $79.4 3Q22 $75.0 $72.2 $67.9 Other RV/Marine Asset Finance Automobile 5% 4% 18% 12%
Slide 122: Net Interest Income
Net Interest Income Through the Cycle Peer Leading Net Interest Income ($M) Net Interest Margin % 3.30% 3.33% 5-year Avg2 10-year Avg3 3.26% 3.15%1 Peer Max $6,2 00.00 Peer Max 2.99% 2.94% $5,111 3.19% HBAN $5,2 00.00 3.13% HBAN $4,2 00.00 $4,127 $3,219 $3,239 $3,245 3.00% Peer $3,052 Peer Median $3
Slide 123: Clear Focus on Growing Fee Income to Drive Profitability
Clear Focus on Growing Fee Income to Drive Profitability Noninterest Income ($M) Key Strategic Areas Driving Fee Growth1 Capital Markets 7% 15% Capital Markets $1,976 • Capturing the mid market opportunity 12% $1,889 and expanding platform capabilities 12% Wealth Management $1,591 $1,454 • Leveragin
Slide 124: Pursuing Strategic Investments with Disciplined Expense Management
Pursuing Strategic Investments with Disciplined Expense Management 1 Grow Expenses Less than Revenue To Deliver Positive Operating Leverage Total Expenses: ~$4 Billion Continued Commitment to Growing Investment Capacity... (YTD 2022 annualized) ✓ Increasing as a % of total expense 2 Increasing at a
Slide 125: Diligent Through the Cycle Management Driven by Aggregate Moderate-to-Low Risk Appetite
Diligent Through the Cycle Management Driven by Aggregate Moderate-to-Low Risk Appetite Net Charge-off Ratio Well-Positioned ACL Reserve Ratio YTD Average for any Economic Scenario 3Q22 • Operating within our target through 1.89% the cycle NCO range 0.16% 1.44% • Consistent top-tier CCAR credit stre
Slide 126: Clear and Disciplined Capital Allocation Priorities
Clear and Disciplined Capital Allocation Priorities Capital Return to Shareholders ($M) Priorities Common Dividends Buybacks $1,480 $1,476 $1,052 $939 $713 $650 $905 • Over $6B returned to shareholders Funding Organic $639 1 $441 $92 over past 6 years Growth $260 $826 $905 $379 $541 $611 $621 2017 2
Slide 127: M&A Execution Supports Long-Term Profitable Growth
M&A Execution Supports Long-Term Profitable Growth Captured Strategic and Financial Benefits from Past M&A Acquisition Type Bank M&A Financial Services Bolt-ons Emerging Fintech Torana Equipment Finance Financial Criteria Attractive Economics and Earn Back Characteristics ✓ ✓ ✓ Clear Cost Synergies
Slide 128: How We Manage Through Uncertain Outlook
How We Manage Through Uncertain Outlook Economic Scenarios Operating Approach Short and shallow 2023 GDP contraction, Growth Outlook Capital Priorities Expense Management followed by modest GDP expansion, inflation generally subsiding, interest rates Baseline informed by forward curve Execution of g
Slide 129: Baseline Scenario | Medium-Term Financial Targets
Baseline Scenario | Medium-Term Financial Targets PPNR ROTCE Positive Growth 20%+ Operating 6 – 9% Leverage ROTCE ex-AOCI 17% – 19% • CET1 Ratio: 9 – 10% Operating • Net Charge-offs: 25 – 45 bps through the cycle Assumptions • Tax Rate: 19 – 21% Consistent Top Quartile Performance Through the Cycle
Slide 130: Strategic Execution to Drive Outperformance in ROTCE
Strategic Execution to Drive Outperformance in ROTCE Adjusted ROTCE Bridge 19.9% ~(230) bps 20%+ ROTCE AOCI 17.6% accretion Positive Provision 17 – 19% Generating fee Marginal tax Dynamic operating increasing to rate higher revenue driven ROTCE interest rate leverage support with growing by wealth e
Slide 131: Purposeful Execution Towards Our Long-Term Strategy
Purposeful Execution Towards Our Long-Term Strategy Investing Differentiating Optimizing for sustainable our culture, brand, and for top quartile performance profitable growth customer experience and value creation Revenue Producing Initiatives Financial Rigor Execution • Prioritize highest revenue
Slide 132: Closing Remarks
Closing Remarks Steve Steinour Chairman, President, and CEO
Slide 133: Investor Day Key Takeaways
Investor Day Key Takeaways 1 2 3 4 5 Our culture and Powerful Broad-based Focused and Uniquely purpose drive franchise with organic growth disciplined positioned to outperformance distinguished opportunities execution deliver substantial brand and value creation reputation People-first Market leadin
Slide 134: Q&A
(2) Huntington Q&A
Slide 135: Appendix
(2) Huntington Appendix
Slide 136: Basis of Presentation
Basis of Presentation Use of Non-GAAP Financial Measures This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, th
Slide 137: Basis of Presentation
Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Notable Items From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be a
Slide 138: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-Provision Net Revenue (PPNR) YTD22 Pre-Provision Net Revenue ($ in millions) 2017 2018 2019 2020 2021 Annualized Total revenue $4,309 $4,510 $4,667 $4,815 $5,991 $7,057 FTE adjustment 50 30 26 21 25 29 Total revenue (FTE) a 4,359 4,540 4,693 4,836 6,016 7,087 Less: net ga
Slide 139: Non-GAAP Reconciliation
Non-GAAP Reconciliation ROTCE – 2017 - 2021 ($ in millions) 2017 2018 2019 2020 2021 ($ in millions) 2017 2018 2019 2020 2021 Adjusted net income available to Average common shareholders’ equity $9,539 $9,887 $10,357 $10,618 $14,569 $1,146 $1,358 $1,376 $749 $1,191 common (C) Less: intangible assets
Slide 140: Non-GAAP Reconciliation
Non-GAAP Reconciliation ROTCE – YTD 2022 ($ in millions) YTD22 ($ in millions) YTD22 Average common shareholders’ equity $16,367 Adjusted net income available to common (annualized) (C) $2,059 Less: intangible assets and goodwill 5,660 Add: net tax effect of intangible assets 47 Return on average ta
Slide 141: Non-GAAP Reconciliation
Non-GAAP Reconciliation EPS, Efficiency Ratio Efficiency Ratio ($ in millions) – Pre-tax YTD22 Noninterest expense (GAAP) $3,124 Less: intangible amortization 40 Noninterest expense less amortization of intangibles (A) $3,084 Less: Acquisition-related net expenses, pre-tax $80 Adjusted noninterest e
Slide 142: Non-GAAP Reconciliation
Non-GAAP Reconciliation Average Loans – Business Banking Average Loans – Business Banking, ex PPP ($ in millions) 2017 2018 2019 2020 2021 Q3 2022 Total average loans – Business Banking $5,580 $5,498 $5,431 $9,270 $10,393 $6,973 Less: total average loans – PPP -- -- -- 4,128 4,021 252 Total average