Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — 2024 Morgan Stanley US Financials, Payments and CRE Conference
17 slides from Huntington Bancshares's conference presentation, Jun 10, 2024
Slide 1: 2024 Morgan Stanley US Financials, Payments and CRE Conference
Welcome.® 2024 Morgan Stanley US Financials, Payments and CRE Conference June 10, 2024 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2024 Huntington Bancshares Incorporated.
Slide 2: Disclaimer
Disclaimer CAUTION REGARDING FORWARD-LOOKING STATEMENTS The information contained or incorporated by reference in this presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical fa
Slide 3: Huntington: A Purpose-Driven Company
Huntington: A Purpose-Driven Company OUR PURPOSE OUR VISION We make people’s lives To be the leading better, help businesses People-First, thrive, and strengthen the Digitally Powered Bank communities we serve Purpose and Vision Linked to Business Strategies Guided by Through-the-Cycle Aggregate Mod
Slide 4: Key Messages
Key Messages 1 Operating from a position of strength, leveraging robust capital and liquidity positions Driving sustained organic deposit and loan growth, supporting expanded net interest 2 income from the first quarter level over the course of the year Sustaining investments in revenue growth initi
Slide 5: Operating from a Position of Strength
Operating from a Position of Strength Deposits / Capital Credit Liquidity CET1 + ACL ACL Deposit Growth % of Loans Since 4Q21 12.0% 1.97% +5.9% Peer Peer Peer Median 11.7% Median 1.66% Median -7.0%(2) Adj. NCO Liquidity(3) as % of CET1(1) Since 4Q21 Uninsured Deposits Peer 1 Peer 5 HBAN 205% Peer 2
Slide 6: Driving Sustained Loan Growth
Driving Sustained Loan Growth Differentiated Full Year Cumulative Average Loan Growth versus Peers Loan Growth Outlook since 1Q23(1) Commercial portfolios drive majority of growth: +2.2% +$1.2B +1.3% 2Q QTD(2) Led by existing businesses including business banking, middle market, and Huntington s
Slide 7: Driving Deposit Funding to Support Accelerating Loan Growth
Driving Deposit Funding to Support Accelerating Loan Growth Deposit Growth vs. Total Deposit Beta(1) Highlights (4Q21 – 1Q24) Core balances represented majority of net growth since YE22, and core average consumer deposits 8 4 Deposit Growth (%) have increased for 5 consecutive quarters 0 Peer 1 -4
Slide 8: Positioned to Expand Net Interest Income
Positioned to Expand Net Interest Income Highlights Retention of Net Interest Income Dollars (1Q23 – 1Q24)(1) Proactively managing to a top quartile Peer 1 92.4% Top / Bottom percentage of net interest income YoY, Quartile(1) HBAN 91.3% supported by loan growth, a well Peer 2 91.2% managed beta, a
Slide 9: Disciplined Credit Culture Supports Outperformance
Disciplined Credit Culture Supports Outperformance Robust Client Selection Historical Moderate-to-Low Risk Portfolio and Underwriting Trends and Reserves Consumer – 44% of total loans Net Charge-off Ratio(3) Prime, super-prime focus with ~770 HBAN Peer Median Through the Cycle Target NCO Range (25
Slide 10: Seizing Opportunity and Adding Talented Colleagues
Seizing Opportunity and Adding Talented Colleagues Recent Expansions New Verticals Recent Expansion Initiatives Commercial Specialty Verticals Native Mortgage HOA, Title, Fund Healthcare American Servicing & Escrow Finance ABL Financial Deposits Deposits Services Offering new and High growth ind
Slide 11: Expanding Deposit Focused Specialty Banking Expertise
Expanding Deposit Focused Specialty Banking Expertise Provides cash and Provides cash and Mortgage HOA, Title, treasury management, treasury management Servicing tri-party agreements, and escrow services to & Escrow Deposits and escrow services granular deposit base Deposits 14 colleague team
Slide 12: Driving Strategic Areas of Fee Revenue Growth
Driving Strategic Areas of Fee Revenue Growth Payments Total Fee Revenue Mix (1Q24) Serving Customers’ Payment and Cash Management Needs Growing Capabilities Capital Expect sequential revenue Established Enterprise Markets increase quarterly in 2024 3 Core Target Customer Sets Payments Organization
Slide 13: Bolstering Payments through Expanded Merchant Acquiring
Bolstering Payments through Expanded Merchant Acquiring Prior In-house Model: Projected Outcome Out-sourced Model: Customer Penetration Provided Referrals to Integrated Capabilities with Third-party Service Banking Product Set >2x Outsourced sales and Create multi-channel acquisitions and servic
Slide 14: 2024 Outlook
2024 Outlook FY24 vs. FY23 Commentary Guidance as of Guidance as of 4/19/24 6/10/24 Average Loans Reflective of accelerated loan growth, while Up 3% - 5% Up 3% - 4% FY23 Baseline = $120.9 billion optimizing for returns Acquiring and deepening primary bank Average Deposits Up 2% - 4% Up 3% - 4% relat
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Common Equity Tier 1 (CET1) CET1 – AOCI Impact ($ in millions) 1Q24 Common Equity Tier 1 (A) $14,284 Add: accumulated other (2,879) Comprehensive income (loss) (AOCI) Less: cash flow hedge (436) Adjusted Common Equity Tier 1 (B) $11,841 Risk Weighted Assets (C) $139,616 Commo
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Noninterest Income, Noninterest Expense Noninterest Income ($ in millions) 1Q23 2Q23 3Q23 4Q23 Noninterest income (GAAP) $512 $495 $509 $405 Less: Notable Items, pre-tax 57 -- -- -- Less: Mark-to-market on pay-fixed swaptions (1) 18 33 (74) Less: CRT -- -- -- (2) Adjusted Non
Slide 17: Notes
Notes Slide 5: (1) AOCI adjustment aligned to the GSIB reporting requirement - exclusion of AOCI adjusted for cash flow hedges on loan portfolio. (2) Average deposit growth 4Q21-1Q24. Source: S&P Global Market Intelligence and filings - Peers include CMA, FITB, KEY, PNC, RF, TFC, ZION; excludes bank
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