Huntington Bancshares (HBAN) Stock Forecast & Price Target

Huntington Bancshares demonstrated robust financial performance, with deposits rising 1.8% sequentially to $165.3 billion, showcasing growth across most categories, particularly in checking and money market accounts. The bank's net interest income also saw a 2.2% sequential increase to $1.43 billion, driven by an expanding net interest margin, which grew 7 basis points to 3.10%, indicating improved profitability from interest-earning assets. Additionally, Huntington's capital position remains strong, evidenced by a CET1 ratio of 10.6%, affirming its stability and capacity for future growth as management raised fiscal year 2025 revenue growth expectations.

Huntington Bancshares's stock outlook is challenged by a decline in core noninterest income, which fell 14.8% sequentially largely due to reduced capital markets revenues, alongside a marginal drop in loan yields. Although net charge-offs decreased to $86 million, potential pressures on asset quality remain due to economic uncertainties, suggesting that credit costs could rise if the economy enters a recession. Furthermore, the bank faces a less favorable interest rate environment that may hinder loan growth and complicate deposit-gathering efforts, putting additional strain on overall financial performance.