Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Nasdaq Investor Conference (June 2019)
24 slides from Huntington Bancshares's conference presentation, Jun 13, 2019
Slide 1: Welcome
Welcome Huntington Bancshares Incorporated Nasdaq Investor Conference June 13, 2019 The Huntington National Bank is Member FDIC. ®, Huntington®, Huntington® are federally registered service marks of Huntington Bancshares Incorporated. ©2019 Huntington Bancshares Incorporated. All rights reserved. (N
Slide 2: Disclaimer
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: Huntington Bancshares Overview
Huntington Bancshares Overview Huntington is a $108 billion asset regional bank holding company headquartered in Columbus, Ohio. Ohio Selected Footprint Branches: 424 Economic Highlights Deposits: $51.3 billion Loans(1): $40.8 billion Michigan Combined GDP of 7 state core Branches: 276 footprint r
Slide 5: 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 6: Well-Diversified Balance Sheet
Well-Diversified Balance Sheet Both a consumer & commercial bank 1Q19 Average 1Q19 Average 46% 50% Total Loans 50% Total Deposits 54% $74.8 B $82.8 B Consumer: $37.4 B Commercial: $37.4 B Consumer: $44.3 B Commercial: $38.5 B 6
Slide 7: Risk Management is at the Core of Our Evolution
Risk Management is at the Core of Our Evolution Driving reduced earnings volatility, more stable returns, higher capital generation, and stronger shareholder value creation Board and CEO Significant “Everyone Disciplined set the investment in Owns Risk” management “Tone at the Top” risk management c
Slide 8: 2018 Huntington Strategic Plan
2018 Huntington Strategic Plan Vision of top quartile financial performance Vision Source of Differentiation: Customer Experience Pillars of Strategic Execution: Category of One (Culture & Brand) Deepen Customer Relationships Extend Local Advantage Enabling Investments: Talent Digitization Data & An
Slide 9: Investing in our Colleagues
Investing in our Colleagues Colleagues are key to our brand and our success Elevating performance management to performance engagement Enhancing physical, mental, and financial wellness and benefits programs Raised the minimum hourly wage to $16 (effective May 2019) Expanding colleague learn
Slide 10: Technology Enables Our Strategy
Technology Enables Our Strategy Record tech development in 2018; further increases planned in 2019 Flexible Scale & Security ✔ Next generation data center and cyber – secure, flexible, and scalable cloud-based infrastructure Efficient Deployment ✔ Automation and DevOps – efficient delivery of ne
Slide 11: End-to-End Digital Transformation
End-to-End Digital Transformation Technology enhancements driving modernized delivery model Improving and Simplifying Sales and Service Next Gen Acquisition Transforming Branch Efficiency and Deepening Reducing time to open an account by 40% Improved, real-time sales leads Strategically Paperl
Slide 12: Delivery Evolution
Delivery Evolution Customer usage continues migration to mobile and digital channels Digitally Active Customers Mobile Adoption Customers Enrolled in Alerts +23% +35% 2.2 million +68% 1.3 million 1.8 million 1.1 million 1.0 million 0.7 million Apr 2017 Apr 2019 Apr 2017 Apr 2019 Apr 2017 Apr 2019 De
Slide 13: Driving Top Quartile Financial Performance with Scale, Density, and Efficiency
Driving Top Quartile Financial Performance with Scale, Density, and Efficiency Deposit Market Share Rankings Efficiency Ratio ROTCE Illustrate Franchise Density (1) % of Com pany MSAs Com pany Top 3 #1 Wells Fargo & Co. 65.5% 21.4% Bank of America Corp. 58.7 11.9 Capital One Financial Corp. 43.3 16.
Slide 14: Driving Toward a Best-in-Class Return Profile
Driving Toward a Best-in-Class Return Profile Actions taken since 2009 accelerated performance 1Q19 ROTCE vs. Peers Focused the 18.3% Business Model Peer Median: 14.1% Built the Brand Peer 1 Peer 2 Peer 3 HBAN Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11* Invested in 1Q19 ROCE vs. Peers
Slide 15: Positioned for Strong Relative Performance Through-the-Cycle
Positioned for Strong Relative Performance Through- the-Cycle Strengthened Pretax Pre-Provision Net Revenue (1) Well-Diversified Balance Sheet $ billions $1.9 $2.0 $1.8 $1.8 $1.4 (3) $1.1 50% Loans (3) 50% 46% Deposits $75 B $83 B 54% (2) (2) 2015 2016 2017 2018 1Q18 1Q19 (2) (2) 1.86% 1.75% 2.26% 2
Slide 16: Well-Defined Capital Priorities
Well-Defined Capital Priorities Targeting total payout ratio of 70% - 80%, including a dividend payout target of 40% - 45% Capital Priorities 1. Funding Organic Growth 2. Support the Dividend 3. All Other Uses $74.8 4.7% $72.2 4.4% $67.9 $57.5 $48.6 3.0% 2.5% 2.4% $0.25 $0.29 $0.35 $0.50 $0.56 $252
Slide 17: 2019 Expectations and Long-Term Financial Goals
2019 Expectations(1) and Long-Term Financial Goals 2019 2019 - 2021 Full-Year Expectations(1) Long-Term Financial Goals Revenue Growth 4% - 6.5% Revenue Growth 4% - 6% 2018 = $4.540 billion Positive Noninterest Expense Growth 2% - 3.5% Noninterest Expense Growth Operating 2018 = $2.647 billion Lever
Slide 18: 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 19: Appendix
Appendix
Slide 20: Huntington's Peer Group
Huntington’s Peer Group Price / Total Total Total Market Dividend $ in millions Assets Deposits Loans Capitalization Consensus Consensus Tangible Yield 2018E 2019E Book PNC Financial Services Group, Inc. $392,837 $271,221 $232,293 $58,222 11.2x 10.4x 1.7x 2.9% BB&T Corporation 227,683 159,766 149,05
Slide 21: Important Disclosures
Important Disclosures Slide 9: Enterprise Net Promoter Score is a composite of customer segment metrics weighted by 2018 budgeted revenue: (1) Consumer‐Retail Banking, JD Power Annual Consumer Retail Study, (2) Consumer‐Private Bank, HNB Proprietary Satisfaction/Loyalty Survey, (3) Small Business, H
Slide 22: Reconciliation
Reconciliation Pretax Pre-Provision Net Revenue (PPNR) ($ in millions) 1Q19 1Q18 2018 2017 2016 2015 Net interest income – FTE $829 $777 $3,219 $3,052 $2,412 $1,983 Noninterest income 319 314 1,321 1,307 1,151 1,039 Total revenue 1,148 1,091 4,540 4,359 3,563 3,022 Less: Significant Items 0 0 0 2 1
Slide 23: Basis of Presentation
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 24: Basis of Presentation
Basis of Presentation 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 be associated with ordinary banking activities, are so unusually large that their outsiz
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