Huntington Bancshares Inc at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Thank you, both. That was a lot in there in a short amount of time, which we'll kind of maybe come back to some of that. Maybe, Zach -- maybe you should start off kind of big picture on your thoughts on kind of the overall economic landscape in your markets, fairly close to your customers, and just kind of what that means for overall growth trends through the balance of this year and maybe into 2025?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : I guess up 3% this year, I guess, better than peers is, I guess, up 3% to 4% was your guidance back in July. So still, I would think that's going to end up at the upper end of the peer group. Maybe, Brant, within that, maybe just talk to what you're hearing from your customers and just kind of where do you see the pockets of opportunities to grow loans?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then if we could get the first ARS question up on the screen. So for those new to this conference, we do this every year, with these clickers in front of you, for each company. The first question will be the same. It's kind of what your overall position is in Huntington. And we'll publish all these answers tonight, so you can see I'm not going to spend time at least on the first one. I guess, Brant, maybe just sticking with that on the Carolinas, I mean, you're not the first bank to say, let's go build branches in the Carolinas. There's obviously well-entrenched players like BofA and Truist and US banks expanding energy from Morgan and others. I guess, what gives you confidence you could be successful there? Why is this the right time? And maybe kind of what are some of your targeted outcomes?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. And Zach, one question we've gotten is from your slides this morning is you kept the NII guidance unchanged, but the rate environment has obviously evolved since July when you last spoke. Maybe just talk to, I think, when you were expecting two cuts this year. What's the store rate assumption in your rate curve?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : I guess you showed good deposit growth in that quarter-to-date slide. Any -- I guess, talk either on kind of mix shift kind of within the quarter from non interest bearing, interest bearing? And also, just you kind of mentioned executing the down beta playbook. Any pricing actions you're taking now in the deposit? In the last quarter, you were a bit more aggressive in terms of taking up deposit pricing. Clearly, the rate environment has kind of shifted since then.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Maybe going up to the next ARS question, we're going to ask this data question for a lot of the regional banks or looking all the regional banks and some others. And we'll kind of look to see what the audience expectations are in beta. But Brant, I'm going to turn it over to you and get your perspective. I guess it used to be a mid to high 20s data question. Zach kind of mentioned the high 30s data. Maybe just provide some additional color on kind of the down beta strategy, how quickly is the reprice of deposits. The Fed, say, cuts, let's say, 25 basis points next week on September 18. What do you do September 19? And just how we should think about that?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. Maybe to put up the next ARS question, which had to do with next year's net interest margin -- and I guess, Zach, before I kind of move on towards the balance sheet, it sounded like your outlook for NII and next year is a bit more constructive, I think, that investors kind of fear in term of -- with respect to margin and just overall net interest income. I guess, just what gives you maybe some confidence with the Fed, expected to materially cut rates? And just how do you think about NII and NIM for next year?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then just maybe shifting to fee income, I guess you reiterated the guidance of about 5% to 7% for the year. The first half of the year was only up closer, I think, 5%, 5.5%, call it. So that implies an acceleration. Just maybe talk to some of the drivers of that.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : I guess, Brant, Zach mentioned wealth management a bunch of times there. I know it's something you're really focused on. Just maybe some color on your strategy for future growth, just like the Carolinas wealth management is another competitive area.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. And maybe shifting gears to expenses, I guess you didn't say exact, but expense growth, I think, this year was supposed to be 4.5%. Is that number still right, excluding the $20 million charge you referenced?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. And then I guess that would imply, I guess, a slowdown in the back half of the year. Just maybe -- just talk to your expense growth this year is higher than peers, accelerating some investments in tech and risk management. Just kind of where are you in that life cycle? I mean, you kind of -- I think one of the questions was go ahead of the curve or behind the curve?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. And I guess as we start to think about expenses for 2025, maybe just talk to how you're approaching the budgeting process and just thinking about expense growth for next year?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Now in your prepared remarks, you left out asset quality. In the past, you guys have talked to, I guess, 25- to 35-basis-point charges for this year, which is kind of the lower half of your kind of long-term guidance. Just maybe, is that still a good number? And just how you're thinking about credit in the current environment?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then on capital, you were kind of 8.6% CET1 AOCI at 2Q. I suspect AOCI is much less of a drag in 3Q, kind of approaching that 8%, 9% to 10% operating range. Just how do you think about capital? I know you want to grow loans, but investors seem to like buybacks, and just how you're thinking about capital management?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then just lastly, about a minute remaining, acquisitions. TCF went well. I think by most accounts, just how do you think about the overall environment for bank acquisitions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, HBAN.OQ - Huntington Bancshares Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Perfect. With that, please join me in thanking Zach and Brant for their time today.