Huntington Bancshares Incorporated (HBAN): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico do setor bancário regional, o Huntington Bancshares Incorporated (HBAN) navega em uma complexa rede de forças externas que moldam sua trajetória estratégica. Desde a dança intrincada dos regulamentos federais até o poder transformador das tecnologias digitais, essa análise de pestle desvenda o ambiente multifacetado que influencia uma das instituições financeiras mais proeminentes do Centro -Oeste. Mergulhe profundamente nos fatores diferenciados que determinarão a resiliência, a inovação e a vantagem competitiva de Huntington em um ecossistema bancário cada vez mais desafiador.

Huntington Bancshares Incorporated (HBAN) - Análise de Pestle: Fatores Políticos

Regulamentos bancários dos EUA que afetam as estratégias operacionais de Huntington

A Lei de Reforma e Proteção ao Consumidor de Dodd-Frank Wall Street continua a impor requisitos regulatórios significativos aos Huntington Bancshares. O banco deve manter:

• Índice de capital de nível 1 de 10,5%
• Índice de capital total de 12,5%
• Taxa de alavancagem de 5%

Métrica de conformidade regulatória	Porcentagem necessária
Requisitos de capital Basileia III	13.5%
Conformidade no teste de estresse	Passado em 2023

Política monetária do Federal Reserve que afeta os empréstimos e as taxas de juros

A postura política atual do Federal Reserve afeta diretamente as estratégias de empréstimos da Huntington:

• Taxa de fundos federais: 5,25% - 5,50% em janeiro de 2024
• Taxa de empréstimos primários: 8,50%
• Margem de juros líquidos: 3,24% no quarto trimestre 2023

Mudanças potenciais na supervisão do setor financeiro

Estrutura regulatória da administração atual Inclui um escrutínio aprimorado de:

• Conformidade da Lei de Reinvestimento Comunitário
• Protocolos de segurança bancários digitais
• Regulamentos de lavagem de dinheiro

Regulamentos bancários em nível estadual nos mercados regionais do Centro-Oeste

Estado	Requisitos regulatórios específicos
Ohio	Leis aprimoradas de proteção ao consumidor
Michigan	Diretrizes mais rigorosas de empréstimos hipotecários
Indiana	Mandatos locais de empréstimos para pequenas empresas

A Huntington Bancshares mantém a conformidade com os regulamentos específicos do estado em seus principais mercados do Centro-Oeste, com um orçamento estimado de conformidade de US $ 42,3 milhões em 2024.

Huntington Bancshares Incorporated (HBAN) - Análise de Pestle: Fatores Econômicos

Ambiente de taxa de juros flutuante influenciando a lucratividade bancária

No quarto trimestre 2023, Huntington Bancshares registrou receita de juros líquidos de US $ 1,36 bilhão, com uma margem de juros líquidos de 3,07%. O intervalo de taxa de juros de referência do Federal Reserve foi de 5,25% a 5,50% em dezembro de 2023.

Métrica da taxa de juros	2023 valor	2022 Valor
Receita de juros líquidos	US $ 1,36 bilhão	US $ 1,42 bilhão
Margem de juros líquidos	3.07%	3.41%

Desempenho econômico regional do meio -oeste

Os principais mercados de Huntington incluem Ohio, Michigan, Pensilvânia, Indiana e Virgínia Ocidental. As taxas regionais de desemprego em novembro de 2023 eram:

Estado	Taxa de desemprego
Ohio	3.8%
Michigan	3.9%
Pensilvânia	3.5%
Indiana	3.4%
Virgínia Ocidental	4.2%

Tendências de gastos e emprego de consumidores

A carteira de empréstimos de Huntington, a partir do quarto trimestre de 2023, mostrou:

• Empréstimos totais: US $ 87,8 bilhões
• Empréstimos comerciais: US $ 41,2 bilhões
• Empréstimos ao consumidor: US $ 46,6 bilhões

Riscos potenciais de recessão

Principais indicadores de risco econômico para Huntington Bancshares:

Indicador econômico	2023 valor
Provisão de perda de empréstimo	US $ 172 milhões
Razão de empréstimos não-desempenho	0.58%
Índice de capital de camada 1	10.2%

Huntington Bancshares Incorporated (HBAN) - Análise de Pestle: Fatores sociais

Mudança de preferências do consumidor para plataformas bancárias digitais

A partir do quarto trimestre 2023, Huntington Bancshares relatou 2,4 milhões de usuários de bancos digitais ativos. O uso bancário móvel aumentou 18,3% ano a ano, com 67% das interações do cliente que ocorrem através de canais digitais.

Métrica bancária digital	2023 dados	Mudança de ano a ano
Usuários bancários móveis	2,4 milhões	+18.3%
Volume de transação digital	142,6 milhões	+22.7%
Aberturas de contas on -line	86,500	+31.2%

Mudanças demográficas no Centro -Oeste que afetam as demandas de serviços bancários

A análise demográfica regional do meio -oeste revela mudanças significativas nos segmentos de clientes bancários:

Faixa etária	Porcentagem de base de clientes	Necessidades bancárias primárias
18-34 anos	32.4%	Banco digital, contas de baixa taxa
35-54 anos	41.2%	Hipoteca, serviços de investimento
55 anos ou mais	26.4%	Planejamento de aposentadoria, gerenciamento de patrimônio

Aumente o foco na inclusão financeira e no setor bancário da comunidade

Huntington Bancshares investiu US $ 47,3 milhões em programas de desenvolvimento comunitário Durante 2023, direcionar mercados carentes no Centro -Oeste.

• Programas de empréstimos comunitários: US $ 276 milhões desembolsados
• Iniciativas de suporte para pequenas empresas: 1.850 empresas assistidas
• Programas de alfabetização financeira: 42.000 indivíduos treinados

Tendências de trabalho remotas que afetam estratégias de rede de ramificação

Estratégia de adaptação para rede de filiais em resposta a tendências de trabalho remotas:

Métrica de filial	2023 dados	Mudança de 2022
Locais totais de ramificação	656	-4.2%
Centros de Serviço Digital	12	+50%
Tráfego diário de pedestres diários de ramificação	87 clientes	-22.6%

Huntington Bancshares Incorporated (HBAN) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo em infraestrutura bancária digital

Em 2023, Huntington Bancshares investiu US $ 127,3 milhões em atualizações de infraestrutura de tecnologia. O banco relatou um aumento de 22,4% nos gastos com plataforma bancária digital em comparação com o ano anterior.

Categoria de investimento em tecnologia	2023 gastos ($ m)	Crescimento ano a ano
Infraestrutura bancária digital	127.3	22.4%
Soluções de computação em nuvem	42.6	18.7%
Sistemas de segurança de rede	35.9	15.3%

Aprimoramento da segurança cibernética e mitigação de ameaças digitais

Huntington Bancshares alocou US $ 45,2 milhões especificamente para medidas de segurança cibernética em 2023. O banco experimentou 127 tentativas de incidentes cibernéticos, com uma taxa de prevenção e mitigação de 96,8%.

Métrica de segurança cibernética	2023 dados
Investimento de segurança cibernética	US $ 45,2 milhões
Tentativa de incidentes cibernéticos	127
Taxa de prevenção de incidentes	96.8%

Inteligência artificial e aprendizado de máquina em operações bancárias

O banco implementou 37 soluções orientadas a IA em vários domínios operacionais, resultando em US $ 18,6 milhões em ganhos de eficiência operacional.

Aplicação da IA	Número de implementações	Ganho de eficiência ($ M)
Sistemas de detecção de fraude	12	6.3
Atendimento ao cliente Chatbots	15	4.7
Algoritmos de avaliação de risco	10	7.6

Desenvolvimento de plataforma bancária móvel e online

A Huntington Bancshares registrou 2,4 milhões de usuários ativos de bancos móveis em 2023, representando um aumento de 17,6% em relação a 2022. A plataforma bancária móvel processou 142,3 milhões de transações durante o ano.

Métrica bancária móvel	2023 dados	Crescimento ano a ano
Usuários bancários móveis ativos	2,4 milhões	17.6%
Transações móveis processadas	142,3 milhões	22.9%
Taxa de download de aplicativos móveis	673,000	15.2%

Huntington Bancshares Incorporated (HBAN) - Análise de Pestle: Fatores Legais

Conformidade com a Lei de Sigilo Banco e regulamentos de lavagem de dinheiro

Huntington Bancshares relatou gastar US $ 76,3 milhões em despesas regulatórias e de conformidade em 2023. O banco mantém uma equipe de conformidade dedicada de 247 profissionais focados especificamente nos regulamentos de lavagem de dinheiro (AML) e da Lei de Sigilo Banco (BSA).

Métrica de conformidade	2023 dados
Despesas totais de conformidade	US $ 76,3 milhões
Equipe de conformidade	247 profissionais
Investigações de LBC realizadas	1.352 casos
Relatórios de atividades suspeitas arquivadas	842

Riscos potenciais de litígios no setor de serviços financeiros

Em 2023, Huntington Bancshares divulgou US $ 18,4 milhões em reservas legais para possíveis despesas de litígio. Atualmente, o banco enfrenta 23 processos legais ativos com a exposição potencial estimada de US $ 42,6 milhões.

Métrica de litígio	2023 dados
Reservas legais	US $ 18,4 milhões
Procedimentos legais ativos	23 casos
Exposição legal potencial	US $ 42,6 milhões

Relatórios regulatórios e requisitos de adequação de capital

Huntington Bancshares mantém fortes índices de capital que excedem os mínimos regulatórios:

• TIER de patrimônio comum 1 Índice de capital: 10,2%
• Razão de capital total: 13,7%
• Tier 1 Capital Ratio: 11,5%
• Razão de alavancagem: 9,6%

Índice de capital	Razão de Huntington Bancshares	Mínimo regulatório
Nível de patrimônio líquido comum 1	10.2%	7.0%
Capital total	13.7%	10.0%
Capital de Nível 1	11.5%	8.5%
Razão de alavancagem	9.6%	5.0%

Adesão à lei de proteção ao consumidor

Huntington Bancshares relatou zero Ações de aplicação do Departamento de Proteção Financeira do Consumidor (CFPB) Em 2023. O banco processou 1.247 reclamações de consumidores, resolvendo 98,6% em 15 dias úteis.

Métrica de proteção ao consumidor	2023 dados
Ações de aplicação do CFPB	0
Reclamações de consumidores recebidas	1,247
Taxa de resolução de reclamação	98.6%
Tempo médio de resolução	10.3 dias úteis

Huntington Bancshares Incorporated (HBAN) - Análise de Pestle: Fatores Ambientais

Práticas bancárias sustentáveis ​​e iniciativas de financiamento verde

A partir de 2024, Huntington Bancshares comprometeu US $ 2,5 bilhões a finanças e iniciativas ambientais sustentáveis. O portfólio de empréstimos verdes do banco aumentou 22,7% ano a ano.

Categoria de finanças verdes	Valor do investimento ($)	Porcentagem de portfólio
Projetos de energia renovável	875,000,000	35.2%
Tecnologia limpa	625,000,000	25.1%
Infraestrutura sustentável	500,000,000	20.1%
Eficiência energética	375,000,000	15.1%
Conservação Ambiental	125,000,000	5.0%

Redução da pegada de carbono nas operações bancárias

Huntington Bancshares reduziu as emissões operacionais de carbono em 18,5% em 2024, direcionando uma redução de 45% até 2030. Emissões atuais de carbono: 42.500 toneladas METICAS EQUIVAMENTE.

Fonte de emissão	Emissões de carbono (toneladas métricas)	Estratégia de redução
Data centers	12,750	Transição de energia renovável
Rede de filiais	10,625	Atualizações de eficiência energética
Escritórios corporativos	8,500	Certificações de construção verde
Transporte de funcionários	6,375	Trabalho remoto, incentivos de veículos elétricos
Viagens de negócios	4,250	Reuniões virtuais, compensação de carbono

Avaliação de risco ambiental em empréstimos comerciais

Huntington implementou protocolos abrangentes de avaliação de riscos ambientais, avaliando 98,3% dos pedidos de empréstimos comerciais para critérios de impacto e sustentabilidade ambientais.

Compromisso com investimentos em projetos de energia renovável

Em 2024, Huntington investiu US $ 875 milhões em projetos de energia renovável, incluindo iniciativas solares, eólicas e hidrelétricas em 12 estados.

Tipo de energia renovável	Valor do investimento ($)	Geração anual de energia projetada
Projetos solares	437,500,000	625.000 MWh
Energia eólica	262,500,000	375.000 MWh
Hidrelétrico	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.