Huntington Bancshares (NASDAQ:HBAN) shares declined 3% on Monday after the regional bank reduced its fiscal 2027 earnings forecast and revised several elements of its 2026 outlook at the Barclays Global Financial Conference.
The company cited higher short-term interest rates and competition in loan and deposit pricing as factors limiting the expected expansion of its net interest margin.
Huntington also outlined plans to increase share repurchases while maintaining investments intended to support growth.
Fiscal 2027 Earnings Forecast Reduced
Huntington now expects fiscal 2027 earnings per share of $1.75 to $1.83, compared with its previous forecast of $1.90 to $1.93 issued in April.
The bank attributed the reduction primarily to expectations for more moderate net interest margin expansion.
Higher short-term interest rates and competition for loans and deposits are expected to affect the difference between the interest Huntington earns on lending and the interest it pays on funding.
The company’s chief executive said at the conference that Huntington continues to expect a return on equity of more than 17% in 2027 under its revised outlook.
Bank Revises 2026 Revenue and Interest Income Projections
For fiscal 2026, Huntington lowered its annual net interest income growth forecast to approximately 35%, from its previous range of 39% to 43%.
The bank also reduced its implied year-on-year revenue growth projection to around 34%, compared with its earlier estimate of approximately 37%.
Average loan growth is now expected to reach approximately 36%, compared with the previous range of 36% to 37%.
Huntington projects average deposit growth of around 33%, down from its earlier forecast range of 33% to 34%.
The revisions reflect changes in expected lending activity, net interest margins and funding conditions.
Fee Income Outlook Raised
Despite lowering its interest income and revenue forecasts, Huntington increased its fee income growth projection for 2026.
The bank now expects fee income to rise by approximately 32%, compared with its previous forecast of 26.5% to 29.5%.
Management also identified expense control as part of its updated operating outlook, while indicating that the company intends to maintain investments supporting business growth.
The higher fee income forecast partially offsets the changes to other revenue expectations, although Huntington’s overall implied revenue growth projection has declined.
Share Repurchase Plans Increased
Huntington’s chief executive also announced plans to increase share repurchases to between $1.3 billion and $1.4 billion.
The announcement accompanied the bank’s revised earnings and operating forecasts.
Huntington’s updated guidance reflects expectations for slower net interest margin expansion, revised loan and deposit growth assumptions, and higher fee income.
The forecasts remain subject to changes in interest rates, competition and lending conditions.
Huntington Bancshares stock price
