Huntington Bancshares Incorporated (HBAN) Q1 2024 Earnings Call Transcript
Date: April 19, 2024
Time: 8:00 AM ET
Welcome to Huntington Bancshares Incorporated’s First Quarter Earnings Call for 2024. During this call, executives will share details about the bank’s performance in the first quarter and their outlook for the remainder of the year and into 2025.
Executive Summary
Steve Steinour, Chairman, President, and CEO, alongside Zach Wasserman, Chief Financial Officer, highlighted several key points during the call:
- Huntington is focusing on executing its organic growth strategies, emphasizing its strong liquidity and capital metrics.
- Loan growth was prominent this quarter, with further acceleration expected. Deposits also saw an increase, underpinning a solid foundation for future growth.
- The management team expects net interest income and fee revenues to rise sequentially from the first quarter’s levels.
- Credit management remains rigorous, aligning with Huntington’s moderate to low-risk appetite.
- Huntington is poised for earnings expansion through the year and into 2025 due to its strategic investments and core performance.
Financial Performance
Zach Wasserman provided an overview of the quarter’s financials, indicating a strategic blend of loan growth and expense management which positions Huntington for a robust 2024. Loan balances grew by $1.6 billion from the previous year, marking a consistent growth trajectory. Deposit balances also saw a significant $7.9 billion increase year over year.
Credit quality remained stable with net charge-offs improving slightly quarter-over-quarter. The capital and liquidity metrics solidify Huntington’s balance sheet strength, supporting ongoing growth initiatives.
Growth Strategies and Market Expansion
Steinour elaborated on Huntington’s growth strategies, highlighting the addition of new talent and the expansion into new markets like the Carolinas and Texas. The introduction of new commercial specialty verticals underscores the bank’s commitment to diversifying its revenue streams and sustaining its competitive edge.
Future Outlook
The call detailed a confident outlook for the rest of 2024, with organic growth strategies expected to drive loan growth and an increase in fee revenues. Management’s disciplined approach to managing expenses and optimizing the balance sheet is forecasted to bolster profitability through 2024 and into 2025.
Q&A Session Highlights
During the Q&A session, management addressed questions about the net interest income guidance, credit quality observations, and the impact of potential regulatory changes. The executive team reiterated their positive outlook, underpinned by strong loan pipelines and robust deposit growth.
Conclusion
The executives expressed optimism about Huntington’s trajectory and its strategic initiatives that are expected to yield sustainable growth. The disciplined focus on organic growth, rigorous credit management, and strategic market expansions positions Huntington well for future success.
For more information on Huntington’s financial performance and strategic direction, please visit their Investor Relations website.
