Huntington Bancshares, Inc. (HBAN) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 21, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings and welcome to the Huntington Bancshares Second Quarter 2023 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Tim Sedabres, Director of Investor Relations for Huntington Bancshares. Thank you. You may begin.

Tim Sedabres

Thank you, operator. Welcome, everyone and good morning. Copies of the slides we will be reviewing today can be found in the Investor Relations section of our website, www.huntington.com. As a reminder, this call is being recorded and a replay will be available starting about 1 hour from the close of the call. Our presenters today are Steve Steinour, Chairman, President and CEO; and Zach Wasserman, Chief Financial Officer. Rich Pohle, Chief Credit Officer, will join us for the Q&A.

Earnings documents which include our forward-looking statements disclaimer and non-GAAP information are available on the Investor Relations section of our website.

With that, let me now turn it over to Steve.

Steve Steinour

Thanks, Tim. Good morning, everyone and welcome. Thank you for joining the call today. We're pleased to announce our second quarter results which Zach will detail later. Our approach to both our colleagues and customers continues to be grounded in our purpose and served us well in the second quarter. Our colleagues again demonstrated that we make people's lives better, help businesses thrive and strengthen the communities we serve.

Now on to Slide 4; these are the key messages we want to highlight today. First, Huntington has a distinguished deposit franchise which continues to benefit from our strategy to acquire and deepen primary bank customer relationships. This has fueled continued deposit growth over the year, including this quarter. Second, we once again drove capital ratios higher with common equity Tier 1 having increased for 4 quarters in a row. We remain on track to build CET1 to the high end of our range by year-end. Third, credit quality which is a hallmark of the company is performing very well and we continue to operate within our aggregate moderate to low risk appetite. Fourth, we are dynamically managing through the interest rate environment. We are maintaining disciplined deposit pricing while delivering deposit growth and maintaining a robust liquidity position.

Finally, we remain intently focused on executing our strategy. We are investing in the business to drive long-term sustainable revenue growth and we continue to proactively manage the expense base to align with the revenue outlook. Operation accelerate remains on track and we will increase our use of business process outsourcing to drive sustained efficiencies into 2024.