Huntington faces credit risk from loans and leases, particularly commercial real estate, which is sensitive to economic downturns and rising interest rates. Market risk exists from interest rate fluctuations, impacting net interest income and equity value. Liquidity risk is possible due to deposit outflows, and regulatory changes like FDIC resolution plan requirements and potential capital buffer increases. Litigation and regulatory actions pose further uncertainty with potential for significant, unknown losses.
Financial Upside
Huntington's loan and deposit growth, along with increased noninterest income (especially capital markets and advisory fees, and wealth management), suggest potential for revenue expansion. Improved capital ratios (tangible common equity to tangible assets and CET1) indicate a stronger financial position to support growth and absorb potential losses. The company is actively managing credit quality and liquidity, which could lead to future profitability.
