Huntington Bancshares Inc (HBAN) Q1 2025 Earnings Call Highlights: Strong

• Earnings Per Share (EPS): $0.34

• Return on Tangible Common Equity (ROTCE): 16.7%

• Preprovision Net Revenue (PPNR): $783 million, 24% year-over-year growth

• Average Loan Growth: $2.7 billion or 2.1% from the prior quarter

• Average Deposit Growth: $2.2 billion or 1.4% versus prior quarter

• Common Equity Tier 1 (CET1): 10.6%, increased by 40 basis points from last year

• Tangible Book Value Per Share: Increased by over 13% year over year

• Net Charge-Offs: 26 basis points

• Allowance for Credit Losses: 1.87%

• Net Interest Income Growth: $31 million or 2.2% growth in the quarter

• Net Interest Margin (NIM): 3.1%, up 7 basis points from the prior quarter

• Noninterest Income Growth: 6% or $27 million from the prior year

• Payments Revenue Growth: 6% year over year

• Wealth Management Fees Growth: 15% year over year

• Capital Markets Growth: 20% year over year

• Noninterest Expense: Decreased by $26 million sequentially

• Share Repurchase Authorization: $1 billion multiyear program

Release Date: April 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Huntington Bancshares Inc (NASDAQ:HBAN) reported strong loan and deposit growth, with average loans increasing by almost $9 billion and deposits by $11 billion year over year.

• The company achieved a 10% year-over-year revenue growth and a 24% increase in pre-provision net revenue (PPNR), indicating robust financial performance.

• Net interest margin improved to 3.1%, supported by disciplined deposit pricing and effective management of interest rate risks.

• Huntington Bancshares Inc (NASDAQ:HBAN) maintained strong credit performance with net charge-offs at 26 basis points and an allowance for credit losses at 1.87%.

• The company announced a $1 billion multiyear share repurchase authorization, reflecting confidence in its capital position and future growth prospects.

• The economic outlook for 2025 is uncertain, with increased probability of adverse scenarios that could create headwinds for the industry.

• Criticized asset ratio increased to 3.98%, indicating some deterioration in asset quality.

• Noninterest income growth is subject to market conditions, particularly in areas like M&A advisory, which are sensitive to economic uncertainty.

• The company is cautious about loan growth in the second half of the year, reflecting potential economic challenges.

• There is a potential for modest drag from the hedging program on net interest margin, depending on future interest rate movements.

Q: The net interest margin came in higher than expectations. Should we expect flat net interest margin trends relative to the 3.10%, or should we consider interest recoveries? A: Zachary Wasserman, CFO, explained that the outperformance was primarily due to better-than-expected deposit pricing. The current run rate is around 3.07%, and under most scenarios, the net interest margin is expected to remain flat around this level for the rest of the year.