Huntington Bancshares Lowers 2027 Earnings Outlook Amid Margin and Loan Growth Challenges
Huntington Bancshares has revised its 2027 earnings per share (EPS) outlook downward to a range of $1.75–$1.83, citing pressures from higher funding costs, deposit competition, and slowing loan growth. The bank's organic loan growth rate has dropped to approximately 6% from the previous 8%–9%, with commercial real estate paydowns, mortgage weakness, and reduced indirect auto lending contributing to headwinds. Despite these challenges, Huntington plans to increase its share repurchase program by $200 million in 2027, raising it to a total of between $1.3 billion and $1.4 billion as slower loan growth frees up capital. The bank's net interest margin is expected to remain near the low-to-mid range of 3.20% through next year. CEO Steve Steinour noted that while operating performance has remained solid, external factors such as higher-for-longer interest rates and increased deposit competition have made the environment more challenging than anticipated at the start of the year.
Tickers: $HBAN
Topics: interest rates loan growth net interest margin share buybacks