Huntington Bancshares Delivers Record-Breaking Q4 Results, Positions Itself for Future Growth
In a recent conference call, Huntington Bancshares announced its fourth-quarter (Q4) results, showcasing a remarkable performance that has left many industry experts in awe.
Huntington's Chairman, President and CEO, Steve Steinour, took to the stage to share the company's achievements, hailing 2024 as an exceptional year for the institution. With accelerated growth across various segments, including loans and deposits, Huntington delivered record fee revenues, reflecting its strategic investments in new geographies and capabilities.
Key highlights from the quarter include sequential growth in both spread and fee revenues, further solidifying Huntington's position as a leader in the industry. The company also executed its down-beta action plans, effectively lowering deposit pricing to manage net interest margin in a dynamic interest rate environment.
Achieving strong credit performance was another notable accomplishment, attributed to disciplined client selection and rigorous portfolio management aligned with Huntington's moderate-to-low-risk appetite. This impressive feat underscores the company's commitment to prudent risk management, a trait that has served it well for many years.
As Steinour highlighted during the conference call, "We're just getting started here." The company is poised to deliver record net interest income and fee revenues for the full year, driven by its growth strategies. With over $7.5 billion in average deposits and more than $3.5 billion in average loans grown in 2024, Huntington's results demonstrate a clear trajectory towards sustained revenue expansion.
The company's focus on executing organic growth strategies, driving revenues higher, and maintaining consistent risk management is paying off, with numerous growth levers identified across its existing markets, businesses, and expanded geographies. Huntington benefits from a unique combination of assets, including a robust liquidity position and stable credit, which have enabled it to accelerate growth in its core business while expanding into new areas.
With Capital Markets setting a new quarterly record for revenue at $120 million – an increase of 74% from the previous year – Huntington's fee revenue businesses are performing exceptionally well. The company is also expanding advisory household relationships by 9% year-over-year and gathering increased wealth assets from its customers, further solidifying its position in the market.
The growth opportunities ahead for Huntington are significant, with Steinour stating that they are "the most attractive they've been since [he] joined Huntington." The company is well-positioned to drive sustained revenue expansion in both fee and spread revenues, thanks to a consistent approach to risk management and numerous growth levers across its existing markets, businesses, and expanded geographies.
