Huntington Bancshares Incorporated (HBAN): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de la banca regional, Huntington Bancshares Incorporated (HBAN) navega por una compleja red de fuerzas externas que dan forma a su trayectoria estratégica. Desde la intrincada danza de las regulaciones federales hasta el poder transformador de las tecnologías digitales, este análisis de mano de mano desentraña el entorno multifacético que influye en una de las instituciones financieras más destacadas del Medio Oeste. Cumplir profundamente en los factores matizados que determinarán la resiliencia, la innovación y la ventaja competitiva de Huntington en un ecosistema bancario cada vez más desafiante.

Huntington Bancshares Incorporated (HBAN) - Análisis de mortero: factores políticos

Regulaciones bancarias de EE. UU. Impactando las estrategias operativas de Huntington

La Ley de Reforma y Protección del Consumidor de Dodd-Frank Wall Street continúa imponiendo requisitos regulatorios significativos a Huntington Bancshares. El banco debe mantener:

• Relación de capital de nivel 1 del 10,5%
• Relación de capital total del 12,5%
• Relación de apalancamiento del 5%

Métrico de cumplimiento regulatorio	Porcentaje requerido
Requisitos de capital de Basilea III	13.5%
Cumplimiento de la prueba de estrés	Pasado en 2023

Política monetaria de la Reserva Federal que afecta los préstamos y las tasas de interés

La postura de política actual de la Reserva Federal afecta directamente las estrategias de préstamos de Huntington:

• Tasa de fondos federales: 5.25% - 5.50% a partir de enero de 2024
• Tasa de préstamo principal: 8.50%
• Margen de interés neto: 3.24% en el cuarto trimestre de 2023

Cambios potenciales en la supervisión del sector financiero

Marco regulatorio de la administración actual Incluye un escrutinio mejorado de:

• Cumplimiento de la Ley de Reinversión Comunitaria
• Protocolos de seguridad bancaria digital
• Regulaciones contra el lavado de dinero

Regulaciones bancarias a nivel estatal en los mercados regionales del Medio Oeste

Estado	Requisitos reglamentarios específicos
Ohio	Leyes de protección del consumidor mejoradas
Michigan	Pautas de préstamos hipotecarios más estrictos
Indiana	Mandatos locales de préstamos para pequeñas empresas

Huntington Bancshares mantiene el cumplimiento de las regulaciones específicas del estado en sus mercados primarios del medio oeste, con un presupuesto de cumplimiento estimado de $ 42.3 millones en 2024.

Huntington Bancshares Incorporated (HBAN) - Análisis de mortero: factores económicos

Fluctuando el entorno de tasa de interés que influye en la rentabilidad bancaria

A partir del cuarto trimestre de 2023, Huntington Bancshares reportó ingresos por intereses netos de $ 1.36 mil millones, con un margen de interés neto del 3.07%. El rango de tasas de interés de referencia de la Reserva Federal fue de 5.25% a 5.50% en diciembre de 2023.

Métrica de tasa de interés	Valor 2023	Valor 2022
Ingresos de intereses netos	$ 1.36 mil millones	$ 1.42 mil millones
Margen de interés neto	3.07%	3.41%

Desempeño económico regional del medio oeste

Los mercados principales de Huntington incluyen Ohio, Michigan, Pensilvania, Indiana y Virginia Occidental. Las tasas de desempleo regionales a noviembre de 2023 fueron:

Estado	Tasa de desempleo
Ohio	3.8%
Michigan	3.9%
Pensilvania	3.5%
Indiana	3.4%
Virginia Occidental	4.2%

Tendencias de gasto y empleo del consumidor

La cartera de préstamos de Huntington a partir del cuarto trimestre de 2023 mostró:

• Préstamos totales: $ 87.8 mil millones
• Préstamos comerciales: $ 41.2 mil millones
• Préstamos al consumidor: $ 46.6 mil millones

Riesgos potenciales de recesión

Indicadores clave de riesgo económico para Huntington Bancshares:

Indicador económico	Valor 2023
Provisión de pérdida de préstamo	$ 172 millones
Relación de préstamos sin rendimiento	0.58%
Relación de capital de nivel 1	10.2%

Huntington Bancshares Incorporated (HBAN) - Análisis de mortero: factores sociales

Cambiando las preferencias del consumidor hacia las plataformas de banca digital

A partir del cuarto trimestre de 2023, Huntington Bancshares informó 2.4 millones de usuarios bancarios digitales activos. El uso de la banca móvil aumentó en un 18.3% año tras año, con El 67% de las interacciones del cliente que ocurren a través de canales digitales.

Métrica de banca digital	2023 datos	Cambio año tras año
Usuarios de banca móvil	2.4 millones	+18.3%
Volumen de transacción digital	142.6 millones	+22.7%
Aperturas de cuentas en línea	86,500	+31.2%

Cambios demográficos en el Medio Oeste que afectan las demandas del servicio bancario

El análisis demográfico regional del Medio Oeste revela cambios significativos en los segmentos de los clientes bancarios:

Grupo de edad	Porcentaje de la base de clientes	Necesidades bancarias principales
18-34 años	32.4%	Banca digital, cuentas de baja tarifa
35-54 años	41.2%	Hipoteca, servicios de inversión
55+ años	26.4%	Planificación de jubilación, gestión de patrimonio

Aumento del enfoque en la inclusión financiera y la banca comunitaria

Huntington Bancshares invertido $ 47.3 millones en programas de desarrollo comunitario Durante 2023, apuntando a mercados desatendidos en todo el Medio Oeste.

• Programas de préstamos comunitarios: $ 276 millones desembolsados
• Iniciativas de soporte de pequeñas empresas: 1.850 empresas asistidas
• Programas de educación financiera: 42,000 personas capacitadas

Tendencias laborales remotas que afectan las estrategias de la red de sucursales

Estrategia de adaptación de la red de sucursales en respuesta a las tendencias de trabajo remoto:

Rama métrica	2023 datos	Cambio de 2022
Ubicaciones de sucursales totales	656	-4.2%
Centros de servicio digital	12	+50%
Tráfico diario promedio de la rama diaria	87 clientes	-22.6%

Huntington Bancshares Incorporated (HBAN) - Análisis de mortero: factores tecnológicos

Inversión continua en infraestructura bancaria digital

En 2023, Huntington Bancshares invirtió $ 127.3 millones en actualizaciones de infraestructura tecnológica. El banco reportó un aumento del 22.4% en el gasto de la plataforma de banca digital en comparación con el año anterior.

Categoría de inversión tecnológica	2023 gastos ($ M)	Crecimiento año tras año
Infraestructura bancaria digital	127.3	22.4%
Soluciones de computación en la nube	42.6	18.7%
Sistemas de seguridad de red	35.9	15.3%

Mejora de ciberseguridad y mitigación de amenazas digitales

Huntington Bancshares asignó $ 45.2 millones específicamente para medidas de ciberseguridad en 2023. El banco experimentó 127 intentos de intento de ciber, con una tasa de prevención y mitigación del 96.8%.

Métrica de ciberseguridad	2023 datos
Inversión de ciberseguridad	$ 45.2 millones
Intento de incidentes cibernéticos	127
Tasa de prevención de incidentes	96.8%

Inteligencia artificial y aprendizaje automático en operaciones bancarias

El banco implementó 37 soluciones impulsadas por la IA en varios dominios operativos, lo que resultó en $ 18.6 millones en ganancias de eficiencia operativa.

Aplicación de IA	Número de implementaciones	Ganancia de eficiencia ($ M)
Sistemas de detección de fraude	12	6.3
Chatbots de servicio al cliente	15	4.7
Algoritmos de evaluación de riesgos	10	7.6

Desarrollo de la plataforma bancaria móvil y en línea

Huntington Bancshares reportó 2.4 millones de usuarios de banca móvil activa en 2023, lo que representa un aumento del 17.6% desde 2022. La plataforma de banca móvil procesó 142.3 millones de transacciones durante el año.

Métrica de banca móvil	2023 datos	Crecimiento año tras año
Usuarios de banca móvil activa	2.4 millones	17.6%
Transacciones móviles procesadas	142.3 millones	22.9%
Tasa de descarga de la aplicación móvil	673,000	15.2%

Huntington Bancshares Incorporated (HBAN) - Análisis de mortero: factores legales

Cumplimiento de la Ley de secreto bancario y las regulaciones contra el lavado de dinero

Huntington Bancshares informó gastar $ 76.3 millones en gastos reglamentarios y reglamentarios en 2023. El banco mantiene un equipo de cumplimiento dedicado de 247 profesionales enfocados específicamente en las regulaciones de la Ley de Secretación Bancaria (BSA).

Métrico de cumplimiento	2023 datos
Gastos totales de cumplimiento	$ 76.3 millones
Personal de cumplimiento	247 profesionales
Investigaciones de AML realizadas	1.352 casos
Informes de actividad sospechosos archivados	842

Posibles riesgos de litigios en el sector de servicios financieros

En 2023, Huntington Bancshares reveló $ 18.4 millones en reservas legales para posibles gastos de litigio. El banco actualmente enfrenta 23 procedimientos legales activos con una exposición potencial estimada de $ 42.6 millones.

Litigio métrico	2023 datos
Reservas legales	$ 18.4 millones
Procedimientos legales activos	23 casos
Exposición legal potencial	$ 42.6 millones

Requisitos de informes regulatorios y adecuación de capital

Huntington Bancshares mantiene fuertes relaciones de capital que exceden los mínimos regulatorios:

• Relación de capital de nivel 1 común: 10.2%
• Relación de capital total: 13.7%
• Relación de capital de nivel 1: 11.5%
• Relación de apalancamiento: 9.6%

Relación de capital	Relación de Bancshares de Huntington	Mínimo regulatorio
Equidad común de nivel 1	10.2%	7.0%
Capital total	13.7%	10.0%
Capital de nivel 1	11.5%	8.5%
Relación de apalancamiento	9.6%	5.0%

Adherencia a la ley de protección del consumidor

Huntington Bancshares informó cero Acciones de aplicación de la Oficina de Protección Financiera del Consumidor (CFPB) En 2023. El banco procesó 1.247 quejas de los consumidores, resolviendo 98.6% dentro de los 15 días hábiles.

Métrica de protección del consumidor	2023 datos
Acciones de cumplimiento de CFPB	0
Quejas de consumo recibidas	1,247
Tasa de resolución de quejas	98.6%
Tiempo de resolución promedio	10.3 días hábiles

Huntington Bancshares Incorporated (HBAN) - Análisis de mortero: factores ambientales

Prácticas bancarias sostenibles e iniciativas de financiamiento verde

A partir de 2024, Huntington Bancshares comprometió $ 2.5 mil millones a financiamiento sostenible y iniciativas ambientales. La cartera de préstamos verdes del banco aumentó en un 22.7% año tras año.

Categoría de finanzas verdes	Monto de inversión ($)	Porcentaje de cartera
Proyectos de energía renovable	875,000,000	35.2%
Tecnología limpia	625,000,000	25.1%
Infraestructura sostenible	500,000,000	20.1%
Eficiencia energética	375,000,000	15.1%
Conservación ambiental	125,000,000	5.0%

Reducción de la huella de carbono en las operaciones bancarias

Huntington Bancshares redujo las emisiones operativas de carbono en un 18,5% en 2024, dirigiendo una reducción del 45% para 2030. Emisiones actuales de carbono: 42,500 toneladas métricas CO2 equivalente.

Fuente de emisión	Emisiones de carbono (toneladas métricas)	Estrategia de reducción
Centros de datos	12,750	Transición de energía renovable
Red de sucursales	10,625	Actualizaciones de eficiencia energética
Oficinas corporativas	8,500	Certificaciones de construcción verde
Transporte de empleados	6,375	Trabajo remoto, incentivos de vehículos eléctricos
Viaje de negocios	4,250	Reuniones virtuales, compensación de carbono

Evaluación de riesgos ambientales en préstamos comerciales

Huntington implementó protocolos integrales de evaluación de riesgos ambientales, evaluando el 98.3% de las solicitudes de préstamos comerciales para el impacto ambiental y los criterios de sostenibilidad.

Compromiso con las inversiones del proyecto de energía renovable

En 2024, Huntington invirtió $ 875 millones en proyectos de energía renovable, incluidas iniciativas de energía solar, eólica e hidroeléctrica en 12 estados.

Tipo de energía renovable	Monto de inversión ($)	Generación de energía anual proyectada
Proyectos solares	437,500,000	625,000 MWH
Energía eólica	262,500,000	375,000 MWH
Hidroeléctrico	175,000,000	250,000 MWh

Huntington Bancshares Incorporated (HBAN) - PESTLE Analysis: Social factors

Commitment to a five-year, $40 billion Community Plan for economic inclusion and lending.

You need to see where a bank's stated purpose translates into real capital flow, and Huntington Bancshares Incorporated's (HBAN) commitment to its five-year Community Plan is a clear indicator. Launched in June 2021, the plan pledged $40 billion in loans and investments to strengthen under-resourced communities and small businesses across its footprint. This isn't just a target; it's a social contract.

Honestly, the bank has been aggressive in its execution. As of the first 51 months of the plan, Huntington Bancshares has already exceeded the total commitment, deploying $42.3 billion in community support. That's a strong signal of institutional priority. The commitment to racial and social equity is also significant, with a dedicated $16 billion goal for loans and investments to minority and under-resourced populations, a goal they've also surpassed, reaching $18.5 billion in the same period. This is defintely a core pillar of their social license to operate.

Community Plan Commitment Area	5-Year Goal (USD)	Progress as of Oct 31, 2024 (USD)
Total Community Plan Commitment	$40 billion	$42.3 billion (as of 51 months)
Affordable Housing & Consumer Lending	$24 billion	$18.2 billion
Small Business Lending	$10 billion	$8.2 billion
Dedicated to Minority/Under-resourced Populations	$16 billion	$18.5 billion (as of 51 months)

Focus on Societal Infrastructure, Taxes, and Jobs creates significant positive social value.

The bank's social impact extends beyond direct lending into broader societal infrastructure and job creation, which is a key component of its Community Development Lending and Investing (CDLI) strategy. This is about building the foundation for economic vitality. The CDLI commitment stands at $6.7 billion over the five-year period, with $2 billion specifically earmarked for minority initiatives in these areas.

This capital is channeled into projects that provide tangible community benefits, such as affordable housing units, community services for food security, and workforce development programs. For small and mid-sized businesses, the bank's role is to provide the resources to grow, which directly translates into local job creation and a stronger tax base for the communities they serve. It's a virtuous cycle: fund the business, create the job, strengthen the community.

Decreasing customer loyalty across the sector necessitates continuous digital and service investment.

The social environment for banking has fundamentally changed. Customer loyalty is a moving target in 2025, especially with new Consumer Financial Protection Bureau (CFPB) rules making it easier for customers to port their financial data and switch banks for free. This means that a great digital experience is no longer a luxury; it's the price of entry.

Huntington Bancshares must continuously invest in its digital channels to retain its customer base against fintech disruptors and larger national banks. The trend is clear: as of Q4 2023, the bank reported 2.4 million active digital banking users, and 67% of all customer interactions now occur through digital channels. That's a huge volume of traffic that must be seamless, personalized, and fast, or else churn risk rises. The mobile app is the branch for a growing segment of customers, particularly Millennials and Gen Z who demand frictionless service.

• Retaining customers is harder in 2025 due to easier switching.
• Mobile banking usage increased 18.3% year-over-year (Q4 2023).
• 67% of customer interactions are now digital.
• Digital-only US bank customers rose to 41% post-pandemic.

Strong emphasis on a people-first purpose, supporting affordable housing and small businesses.

At its core, Huntington Bancshares operates with a 'people-first' purpose, which is the unifying theme of its social strategy. This isn't just a slogan; it's the driver behind their specific lending targets. Their economic impact is defined by helping families achieve financial stability and homeownership, and giving small businesses the capital to thrive.

For affordable housing, the bank committed $24 billion in financing, a direct response to a critical social need in their markets. For small businesses, the backbone of local economies, the $10 billion in dedicated lending is key to supporting entrepreneurs and local growth. By focusing on these two areas-housing and small business-Huntington Bancshares embeds itself as a genuine partner, not just a provider, which is the only way to build long-term trust and loyalty in this environment.

Huntington Bancshares Incorporated (HBAN) - PESTLE Analysis: Technological factors

Reinvesting cost savings directly into digital technology and marketing initiatives.

Huntington Bancshares Incorporated is defintely a realist about where future growth comes from, so they are executing a clear strategy: take efficiency savings and pour them right back into the digital channels and marketing that drive new customer acquisition. This isn't just a general cost-cutting exercise; it's a strategic funding mechanism for growth.

The bank is actively managing expenses to create this internal funding. For instance, costs associated with their aggressive branch expansion in the Carolinas are being absorbed within their existing business-as-usual investment capacity for 2025 and beyond. This capital discipline allows them to invest in key digital areas like the 'digital storefront' to enable frictionless originations and access to colleagues. It's a pragmatic approach: use the core business to fund the future digital one.

Here's the quick math on their digital position as they move through 2025:

Metric	2022 Data	2024 Data	Trend/Goal
Digitally Acquired Consumer Households	136K	152K	Increase of 16K Households
Digital Logins (Mobile & Web)	784M	951M	Near 1 Billion Annual Interactions
Digitally Active Customers	Baseline	N/A	8% increase since 2022

Goal to acquire over 100K+ incremental consumer households digitally by 2030.

The stated, long-term ambition is to acquire over 100K+ incremental consumer households digitally by 2030. This is a massive push, and it's built on the success they've already seen. As of 2024, 50% of all new consumer checking households already originate through digital channels. That's a strong starting point.

The real opportunity here, and the risk, is moving those digitally acquired customers from 'skinny' relationships-where they might only have a single product-to full, primary banking relationships. Huntington's strategy is to improve digital household quality by aiming to triple the average deposits from new digital households by 2030. They are focusing on:

• Building an 'Ecommerce Experience' for banking.
• Prioritizing mobile-first customer acquisition.
• Expanding 'One-Tap Originations' for simple product sign-ups.

This is a marathon, not a sprint, but the early numbers show they are on the right track.

Ongoing branch modernization efforts complement the push for digital adoption.

To be fair, Huntington Bancshares Incorporated isn't abandoning the physical world; they view themselves as a 'People-First, Digitally Powered Bank.' The branch network is still critical, especially since a significant portion of their most valuable, multi-product accounts are opened there. They are managing a dual-channel strategy.

The biggest physical investment is the accelerated expansion into new markets like North and South Carolina. They initially planned a five-year build-out of 55 branches but have pulled that plan into just three years, aiming for completion by 2027. This means a substantial number of new locations will open in 2025 and over 20 in both 2026 and 2027. This expansion is not just about real estate; it's about leveraging a local, human-driven approach-the 'people-first' part-to complement the digital efficiency they are building.

High volume of over 1 billion digital customer interactions annually.

The sheer scale of digital engagement is a key technological factor. Huntington is handling over 1 billion digital interactions with customers per year. This high volume is the engine for their data-driven technology strategy.

This massive data flow fuels their ability to offer personalized offers and real-time, trigger-based marketing, which is essential for the 'digital deepening' strategy. The focus is on using technology to provide better service, not just faster transactions. They are using this digital scale to create a more human experience, for example, by developing features like 'Caregiver Banking' to address complex, real-life needs. The growth in digitally active customers, up 8% since 2022, proves the adoption is sticking. Finance: draft a 13-week cash view by Friday that specifically isolates the capital expenditure timeline for the Carolinas branch build-out against the projected digital marketing spend.

Huntington Bancshares Incorporated (HBAN) - PESTLE Analysis: Legal factors

You need to understand that regulatory compliance isn't just a cost center; for a bank like Huntington Bancshares Incorporated, it's a competitive moat. The legal landscape in 2025 is defined by strong capital buffers and the ongoing, complex debate around new international standards. Huntington Bancshares is defintely positioned well, holding capital significantly above the required minimums, which gives them flexibility others lack.

Common Equity Tier 1 (CET1) Ratio of 10.6% (Q3 2025) is Well Above Regulatory Minimums

Huntington Bancshares maintains a capital position that is robust, which is the core of regulatory health. Their Common Equity Tier 1 (CET1) ratio-the gold standard for a bank's ability to absorb unexpected losses-stood at a strong 10.6% as of September 30, 2025. This is materially higher than the minimum regulatory requirement, which is a good sign for stability and for future capital deployment.

Here's the quick math: the regulatory minimum for CET1 is 4.5%, plus the Capital Conservation Buffer (CCB) of 2.5%, for a total of 7.0%. Huntington Bancshares' 10.6% ratio gives them a substantial cushion of 3.6% over this minimum, which means they have significant capacity for lending, acquisitions, or share buybacks without triggering distribution constraints.

Capital Metric (as of Q3 2025)	Huntington Bancshares Ratio	Basel III Minimum Requirement	Well-Capitalized Threshold
Common Equity Tier 1 (CET1) Ratio	10.6%	4.5%	6.5%
Tier 1 Capital Ratio	N/A (Focus on CET1)	6.0%	8.0%
Total Capital Ratio	N/A (Focus on CET1)	8.0%	10.0%
Tier 1 Leverage Ratio	N/A (Focus on CET1)	4.0%	5.0%

Subject to a 2.5% Stress Capital Buffer (SCB) Requirement Through September 2025

The Stress Capital Buffer (SCB) is a critical regulatory layer. It's the amount of capital a bank must hold above the minimum to survive a severe economic downturn, as determined by the Federal Reserve's annual stress tests (Comprehensive Capital Analysis and Review, or CCAR). Huntington Bancshares is subject to an SCB requirement of 2.5%, which was effective for the period from October 1, 2024, through September 30, 2025.

This 2.5% SCB is added to the minimum CET1 requirement of 4.5%, meaning the bank's effective minimum CET1 ratio to avoid restrictions on capital distributions is 7.0%. Their actual 10.6% ratio is far above this, showing management is running the bank with a deliberate, conservative capital strategy. That's a good thing for long-term investors.

Anticipated Regulatory Easing, Specifically on Basel III 'Endgame' Provisions, May Free Up Capital for Lending

The proposed Basel III 'Endgame' rules, which aim to significantly increase capital requirements for large banks, have been a major point of contention. The initial proposal, issued in July 2023, was met with overwhelmingly negative feedback from the industry, including regional banks like Huntington Bancshares.

Federal Reserve officials have publicly acknowledged the need for 'broad and material changes' to the proposal. So, while the final rule is not expected before the second half of 2025, the anticipated outcome is a less stringent set of requirements for regional banks than initially proposed. This potential easing of the final rule could effectively lower the future regulatory capital burden, which would free up capital for increased lending, investment, and strategic growth initiatives. It shifts the near-term risk from a capital crunch to a capital opportunity.

Oversight by Multiple Federal and State Regulators, Including the Federal Reserve and OCC

As a multi-state diversified regional bank holding company, Huntington Bancshares Incorporated (HBAN) is under the watchful eye of several powerful regulatory bodies. This multi-layered oversight ensures stability but also increases compliance costs and complexity.

The key federal regulators include:

• The Federal Reserve (Fed): Provides consolidated supervision of Huntington Bancshares Incorporated as a Bank Holding Company (BHC).
• Office of the Comptroller of the Currency (OCC): Primary regulator and examiner for its main subsidiary, The Huntington National Bank (HNB).
• Federal Deposit Insurance Corporation (FDIC): Oversees deposit insurance and resolution planning for The Huntington National Bank.
• Consumer Financial Protection Bureau (CFPB): Focuses on consumer protection laws across the bank's products and services.

The regulatory environment is also impacted by state-level banking and consumer protection laws across the bank's operating footprint, which spans multiple states, plus the ongoing scrutiny from the Securities and Exchange Commission (SEC) for its public company filings. Finance: Monitor the Basel III reproposal release date closely for capital planning adjustments.

Huntington Bancshares Incorporated (HBAN) - PESTLE Analysis: Environmental factors

When you analyze a major financial institution like Huntington Bancshares Incorporated, the 'E' in PESTLE-the environmental factors-is less about smokestacks and more about financed emissions (Scope 3) and governance maturity. It's a transition risk issue, pure and simple. The bank is defintely moving to mitigate this risk, aligning its strategy with global frameworks and formalizing oversight in 2025.

Here's the quick math: Huntington's total reported operational emissions (Scope 1 and 2) for 2023 were only 67,124 metric tons of $CO2e$ ($tCO2e$), but its financed emissions from the auto loan book alone were over 1.4 million $tCO2e$. That massive difference shows exactly where the environmental risk, and the opportunity for impact, sits.

Formal commitment to a climate strategy, aligning with TCFD (Task Force on Climate-related Financial Disclosures) recommendations.

Huntington Bancshares Incorporated has made a clear, formal commitment to a climate strategy, using the Task Force on Climate-related Financial Disclosures (TCFD) recommendations as the foundation for its reporting for the fourth consecutive year, as noted in its 2023 Climate Report. This commitment goes beyond simple disclosure; it integrates climate-related risks into the core of their risk management program, including credit exposure and scenario analysis. The bank also monitors emerging frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and the International Sustainability Standards Board (ISSB) standards, preparing for future regulatory changes.

This alignment is a smart move for investor relations, but still, the real work is in the execution.

Governance is formalized with a Joint Nominating and ESG Committee established in January 2025.

The bank has formalized its environmental governance at the highest level. The Joint Nominating and ESG Committee Charter was approved on January 15, 2025, demonstrating a near-term commitment to board-level oversight of environmental, social, and governance (ESG) issues. This committee is responsible for overseeing the company's ESG practices and strategy, ensuring accountability. The Board and senior management also received their first-ever enterprise-wide climate risk training in 2024, which shows an effort to build internal capability to manage these complex risks.

The new committee structure ensures that climate strategy is a standing, high-priority item, not just an annual report footnote.

Negative impact on GHG emissions is tied to financing activities like Car loans and Mortgages.

The most significant environmental impact for Huntington Bancshares Incorporated is not from its own operations, but from its lending portfolio-specifically the Scope 3, Category 15 financed emissions. The bank is a major player in consumer direct and indirect automotive lending, and this portfolio represents the largest disclosed financed emissions category.

The bank is a member of the Partnership for Carbon Accounting Financials (PCAF), which enables the standardized assessment of these emissions. The data from the 2023 Climate Report shows the scale of this challenge:

GHG Emissions Category (2023 Data)	Metric Tons of $CO2e$ ($tCO2e$)	Notes
Scope 1 (Direct Operations)	16,331	From heating, corporate fleet, etc.
Scope 2 (Purchased Electricity)	50,793	From purchased electricity, steam, etc.
Scope 3 (Financed Emissions - Auto Book)	1,446,371	Largest disclosed financed category.
Total Scope 1, 2, & 3 (Disclosed Categories)	1,798,928	Includes various other Scope 3 categories.

What this estimate hides is the emissions from other major lending portfolios, like mortgages, which the Climate Risk team is still working to compute reliable, accurate estimates for, consistent with emerging regulatory expectations. The auto book alone accounts for over 80% of the total disclosed Scope 3 emissions.

Reports progress on its climate strategy to support the transition to a low-carbon economy.

Huntington Bancshares Incorporated is actively working to reduce its operational footprint and support the broader low-carbon transition. For its own operations, the bank reported a 7% decrease in Scopes 1 and 2 location-based greenhouse gas (GHG) emissions in 2023. They have a long-term goal to shift 50% of their electricity usage to renewable sources by 2035, and they have executed two power purchase agreements to make progress toward this goal.

On the lending side, the bank is leveraging its Renewable Energy Finance (REF) team, which has financed 24 renewable energy projects with a total capacity of 1,856 MW for companies across its footprint and the nation. This is how a bank can really move the needle on climate impact.

• Achieved a CDP's A- climate change rating.
• Financed 24 renewable energy projects with 1,856 MW capacity.
• Reduced Scope 1 and 2 GHG emissions by 7% in 2023.