Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Goldman Sachs US Financial Services Conference 2019
22 slides from Huntington Bancshares's conference presentation, Dec 11, 2019
Slide 1: Goldman Sachs US Financial Services Conference
Goldman Sachs US Financial Services Conference December 11, 2019 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2019 Huntington Bancshares Incorporated.
Slide 2: Disclaimer: Caution Regarding Forward-Looking Statements
Disclaimer 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 numerous assumptions, risks, and u
Slide 3: Important Messages
Important Messages Building long-term shareholder value Consistent organic growth Maintain aggregate moderate-to-low risk appetite Minimize earnings volatility through the cycle Disciplined capital allocation Focus on top quartile financial performance relative to peers Strategic focus on Cu
Slide 4: Purpose Drives Performance
Purpose Drives Performance Huntington’s approach to shareholder value creation The best way to achieve our long-term financial goals and generate sustainable, through-the-cycle returns is to fulfill our purpose to make people’s lives better, help businesses thrive, and strengthen the communities we
Slide 5: Huntington Strategy
Huntington Strategy Vision of top quartile financial performance enabled through differentiated customer experience Vision Source of Differentiation Customer Experience Pillars of Strategic Execution Category of One (Culture & Brand) Deepen Customer Relationships Extend Local Advantage Enabling Inve
Slide 6: Driving Top Quartile Financial Performance with Scale, Density, and Efficiency
Driving Top Quartile Financial Performance with Scale, Density, and Efficiency (1) Source: S&P Global Market Intelligence (2) FMER acquisition closed in August 2016; 2016 and 2017 results included acquisition-related expense; 2017 results included benefit from implementation of federal tax reform 20
Slide 7: Current Strategic Priorities
Current Strategic Priorities Continuation of our strategic plan focused on delivering top tier performance and superior customer experience Drive organic revenue growth across all business segments Expand expertise-driven commercial and business lending Extend the reach of our corporate banking
Slide 8: Positioning the Balance Sheet to Remain Flexible in Lower Interest Rate Environment
Positioning the Balance Sheet to Remain Flexible in Lower Interest Rate Environment Actions taken to reduce risk from lower interest rates Actions included purchase of interest rate floors, swaps, and $1 billion of additional securities Shifting origination focus towards fixed rate auto and resi
Slide 9: Disciplined Expense Management
Disciplined Expense Management Continue to build capacity for digital, mobile, and other investments, while delivering positive operating leverage Consolidation of 30 in-store Giant Eagle branches planned in 1Q20 Colleague reduction of approximately 200 FTE (as announced on the 3Q19 earnings cal
Slide 10: Strategically Positioning for a Digital Future
Strategically Positioning for a Digital Future Record amount of technology development in 2018 and 2019 Run the Bank Drive process improvements, reliability, and create efficiency across channels (e.g., modernizing deposit infrastructure, digitalization of workflow, investment in RPA, etc.) Protec
Slide 11: Strategically Positioning For a Digital Future
Strategically Positioning For a Digital Future Continue tech enhancements driving modernized delivery model and recognition Improving and Simplifying Sales and Service Transforming Branch Efficiency Next Gen Acquisition ✓ Reduced time to open and Deepening We Listen to Customers & an account by 30%
Slide 12: Delivering Segment Tailored Experience
Delivering Segment Tailored Experience Customizing the digital capabilities to match customer needs and segment strategy Consumer Hub Business Hub Private Bank Hub 4Q18 1Q19 1Q20 Unique Features Unique Features Unique Features ✓ Customized Insights ✓ Cash Position Banner ✓ View My Team ✓ Heads Up (a
Slide 13: Delivery Evolution
Delivery Evolution Customer usage continues migration to mobile and digital channels 2019 Goldman Sachs US Financial Services Conference 13
Slide 14: 2019 Full-Year Expectations
2019 Full-Year Expectations Managing to positive operating leverage in challenging environment 3Q19 YTD 2019 Full-Year Actuals Expectations Net Interest Income (FTE) Growth 3% Approximately 1% 2018 = $3.219 billion 9% - 10% Noninterest Income Growth 9% [Includes $22 million of 2018 = $1.321 billion
Slide 15: Long-Term Financial Goals
Long-Term Financial Goals Driving top tier financial performance 2019 - 2021 Long-Term Financial Goals Revenue Growth 4% - 6% Positive Operating Noninterest Expense Growth Leverage Efficiency Ratio 53% - 56% ROTCE 17% - 20% Net Charge-offs 35 bp - 55 bp (Average through-the-cycle target range) 2019
Slide 16: Driving Toward a Best-in-Class Return Profile
Driving Toward a Best-in-Class Return Profile Strategic actions resulting in top quartile performance Focused the Business Model Built the Brand Invested in the Franchise Disciplined Execution Aggregate Moderate-to-Low Risk Appetite Strong Management / Shareowner Alignment Sources: S&P Global Market
Slide 17: Important Messages
Important Messages Building long-term shareholder value Consistent organic growth Maintain aggregate moderate-to-low risk appetite Minimize earnings volatility through the cycle Disciplined capital allocation Focus on top quartile financial performance relative to peers Strategic focus on Cu
Slide 18: Pi e?:
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Slide 19: Reconciliation: Tangible Common Equity and ROTCE
Reconciliation Tangible common equity and ROTCE ($ in millions) 3Q19 2Q19 3Q18 YTD 2019 YTD 2018 Average common shareholders’ equity $10,510 $10,272 $9,953 $10,247 $9,959 Less: intangible assets and goodwill 2,240 2,252 2,305 2,252 2,318 Add: net tax effect of intangible assets 53 55 66 55 68 Averag
Slide 20: Use of Non-GAAP Financial Measures
Do we consolidate Basis of Presentation this and next slide? 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 n
Slide 21: Basis of Presentation
Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Significant 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
Slide 22: Investor Relations Contacts
Mark A. Muth Director of Investor Relations Office: 614.480.4720 E-mail: mark.muth@huntington.com Brian M. Vereb Asst. Dir. of Investor Relations Office: 614.480.5098 E-mail: brian.m.vereb@huntington.com For additional information, please visit: http://www.huntington.com The Huntington National Bank
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