Huntington Bancshares Incorporated (HBAN): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where Huntington Bancshares Incorporated (HBAN) is putting its capital to work and what's generating returns as of late 2025. Here's the quick math on their business segments using the Boston Consulting Group Matrix, translating their recent strong performance-like the Q3 2025 adjusted Return on Tangible Common Equity (ROTCE) of 17.8%-into simple strategic buckets. We'll show you which areas, like the 12% growing Commercial loan portfolio, are Stars demanding investment, which, like the core deposits growing 6.5% to 7%, are reliable Cash Cows, and which legacy assets, like the securities portfolio that took a $58 million repositioning loss, are Dogs needing attention. Keep reading to see the full breakdown of where Huntington needs to double down and where it should consider divesting.

Background of Huntington Bancshares Incorporated (HBAN)

Huntington Bancshares Incorporated, known on the NASDAQ as HBAN, is the bank holding company for its main subsidiary, The Huntington National Bank. The organization traces its roots back to 1866 when P. W. Huntington formed P. W. Huntington & Company in Columbus, Ohio, which is still the company's headquarters today. You can see the company is definitely a long-standing fixture in the Midwest financial scene.

The Huntington National Bank provides a comprehensive suite of financial products and services to a diverse clientele, including individual consumers, small and middle-market businesses, corporations, and municipalities. Its major activities center on full-service commercial and consumer banking, but it also offers mortgage banking, investment management, treasury management, and insurance brokerage services. Honestly, one key differentiator is that Huntington is recognized as the largest originator of SBA 7(a) loans in the U.S.

As of early 2025, Huntington Bancshares Incorporated was a regional bank holding company with assets around $210 billion or $223 billion, depending on the reporting date, and it was ranked among the top ten regional bank holding companies in the U.S. The core retail banking footprint has historically been concentrated in the Midwest, with significant branch presence in Ohio, where it had 459 offices as of 2024, and Michigan with 290 offices. Still, recent strategic moves have pushed its reach further; for instance, the merger with Veritex Holdings, Inc., closed on October 20, 2025, accelerating growth in Texas markets like Dallas-Fort Worth and Houston, and another acquisition of Cadence Bank was announced in late October 2025.

Huntington Bancshares Incorporated (HBAN) - BCG Matrix: Stars

Stars are defined by having high market share in a growing market. Huntington Bancshares Incorporated's commercial lending areas, particularly Commercial and Industrial (C&I) lending, fit this profile due to significant growth rates that position them as leaders in their respective segments, even as they require continued investment to maintain that lead.

The Commercial loan portfolio is demonstrating robust expansion, a key indicator of a Star business unit. For the third quarter of 2025, the average commercial loan balances showed a year-over-year increase of 12%. This sustained growth suggests strong market penetration within a sector that is still expanding for Huntington Bancshares Incorporated.

Drilling down into the commercial segment, Commercial and Industrial (C&I) lending specifically showed a significant acceleration in the second quarter of 2025. The average commercial and industrial loans increased by 15% year-over-year, driven by a $7.7 billion increase in average balances for that specific category. This high growth rate in a core lending area signifies a market leader capturing share in a growing market.

The strategic move to combine with Veritex Holdings, which closed on October 20, 2025, is a direct investment to solidify and accelerate growth in a high-growth geographic market, Texas. This combination is designed to ensure these growth engines remain Stars. Post-merger, the combined entity holds nearly $223 billion in assets, $176 billion in deposits, and $148 billion in loans. Furthermore, the expansion is expected to position the combined institution as the fifth in deposit market share in both Dallas and Houston, and eighth across Texas. New initiatives, including this geographic expansion, accounted for $1.2 billion in loan growth, representing approximately 40% of total loan growth in Q3 2025.

The Asset Finance unit, a key component of the Commercial segment, is also contributing to this growth trajectory. While the overall standalone loan growth guidance for 2025 was raised to a range of 6% to 8%, Asset Finance specifically contributed $200 million to the total loan growth figures reported in the third quarter. This shows it is a meaningful contributor to the overall high-growth commercial engine.

Here's a quick look at the scale of the growth drivers contributing to the Star classification as of the third quarter of 2025:

The strategy for these units is clear: invest to maintain market share and convert this high-growth success into Cash Cows as the market matures. You're seeing Huntington Bancshares Incorporated commit capital to these areas, which is why the cash flow is currently balanced between investment and return.

Key performance indicators supporting the Star positioning include:

• Average commercial loans grew $8.5 billion year-over-year in Q3 2025.
• C&I lending growth was driven by a $7.7 billion increase YoY in Q2 2025.
• The Veritex combination is expected to lift Return on Average Tangible Common Equity (ROTCE) by 30 basis points for 2025.
• Net Interest Income (NII) guidance was raised to 10% to 11% growth for the full year 2025, inclusive of Veritex.
• The bank is focused on funding high return loan growth as its top capital priority.

Huntington Bancshares Incorporated (HBAN) - BCG Matrix: Cash Cows

You're looking at the core engine of Huntington Bancshares Incorporated's financial stability, the business units that are market leaders in mature segments and print cash. These are the units we want to maintain, not necessarily grow aggressively, because they fund everything else.

The Consumer and Regional Banking segment definitely fits this profile. It maintains a high market share across Huntington Bancshares Incorporated's legacy Midwest footprint, which is a mature, well-understood operating environment. This segment is the source of that consistent, reliable cash flow you're looking for in a Cash Cow.

The stability comes directly from the core deposit base. For the full year 2025, management projected average total deposits to grow between 6.5% and 7% on a Huntington standalone basis. That's the kind of steady, low-cost funding that defines a high-market-share, low-growth business unit. Honestly, that deposit stability is the bedrock.

This funding strength directly fuels the Net Interest Income (NII), which is the primary revenue driver for this segment. Huntington Bancshares Incorporated raised its full-year 2025 guidance for NII growth to a range of 10% to 11%. That's a massive, reliable revenue stream being 'milked' effectively from their established position. For context, the second quarter of 2025 saw NII jump 12% year-over-year to $1.47 billion.

Here's a quick look at how the core business performed in Q2 2025, which demonstrates this cash-generating power:

Because this franchise is established, investments are focused on efficiency rather than broad promotion. The goal is to 'milk' the gains passively, maybe supporting infrastructure to improve that cash flow even more. For instance, the bank is focused on deepening customer ties, seeing consumer primary relationships grow 3% and business banking up 4% year-over-year in Q1 2025, which supports the low-cost deposit narrative.

The strategy here is clear: maintain the current level of productivity in this regional banking franchise. You want to keep that low-cost funding source stable, which helps cover administrative costs and funds the riskier Question Marks in the portfolio. The fact that they are raising guidance for NII growth to 10% to 11% for the full year shows they are successfully managing this asset to generate maximum shareholder value, defintely.

You should track these key indicators to ensure the Cash Cow status remains intact:

• Maintain deposit growth at the high end of the 6.5% to 7% projection.
• Ensure NIM remains robust, as Q2 2025 was 3.11%.
• Continue disciplined expense management to maximize operating leverage.
• Monitor loan growth, which was up nearly $10 billion over the last year in Q2 2025.

Huntington Bancshares Incorporated (HBAN) - BCG Matrix: Dogs

You're looking at the segments of Huntington Bancshares Incorporated (HBAN) that, despite the overall strong performance in 2025, require careful management due to low growth or market share. These are the areas where capital is tied up without generating star-level returns, so they fit squarely in the Dogs quadrant.

One clear example involves the balance sheet cleanup activities. You saw the impact in the second quarter of 2025 with the legacy, lower-yielding securities portfolio that required a $58 million pre-tax repositioning loss. That charge, which reduced Q2 2025 EPS by $0.04, represents management actively pruning assets that no longer fit the desired risk/return profile in the current rate environment. Honestly, taking the hit now is better than letting them drag performance slowly.

Another area fitting this profile is non-strategic or legacy Commercial Real Estate (CRE) loans. While overall average total loans grew 8% year-over-year in Q2 2025 to $133.2 billion, the specific legacy CRE segment is showing contraction. We are looking at non-strategic or legacy Commercial Real Estate (CRE) loans, where average balances decreased 11% year-over-year in Q2 2025. This specific decline suggests an intentional runoff or reduction in a sector that might be facing lower growth prospects or higher capital requirements relative to the bank's core focus areas, like the growing commercial and industrial segment which grew 15% year-over-year in average balances.

The focus on efficiency also points toward physical footprint rationalization. You can expect Huntington Bancshares to target certain non-core, mature branch locations in slower-growth areas that may be targeted for efficiency-driven consolidation. This is a common move when digital adoption, which supports their overall growth, makes a large physical footprint less critical for customer acquisition and service delivery in those specific geographies.

Finally, even well-managed credit quality areas can represent a Dog if the capital allocation isn't optimal. Any non-performing assets (NPAs) still tie up capital that could be deployed elsewhere. While credit quality remains strong, with the nonperforming asset ratio at 0.60% in Q3 2025, which is an improvement from the 0.63% at the end of Q2 2025, these assets require active management and reserve coverage. The Allowance for Credit Losses (ACL) stood at $2.6 billion at the end of Q3 2025.

Here's a quick look at the specific asset quality metrics that define the low-growth/low-return pressure points:

These Dogs represent areas where Huntington Bancshares is actively managing down exposure or absorbing one-time costs to clear the way for higher-growth Stars and reliable Cash Cows, like the core Net Interest Income which grew 12% year-over-year in Q2 2025.

The strategic implications for these Dogs involve minimizing further investment and maximizing cash recovery or efficient divestiture. You should watch for:

• Reduction in the size of the securities portfolio post-repositioning.
• Continued decline in legacy CRE loan balances.
• Minimal capital expenditure on non-core branch infrastructure.
• Maintaining the NPA ratio below the 0.60% level.

Finance: draft 13-week cash view by Friday.

Huntington Bancshares Incorporated (HBAN) - BCG Matrix: Question Marks

You're looking at the business units within Huntington Bancshares Incorporated (HBAN) that are currently consuming cash to fuel growth but haven't yet secured a dominant market position. These are the Question Marks, operating in markets that are expanding, but where Huntington Bancshares' current share is relatively small. The strategy here is clear: invest heavily to capture more market share quickly, or risk these units becoming Dogs.

The Q3 2025 results show clear momentum in several areas that fit this profile, demonstrating high growth rates that suggest potential, but also the ongoing need for investment to scale. For instance, the Payments business delivered 10% year-over-year revenue growth in Q3 2025, reaching $174 million, up from $158 million in the prior-year quarter. Still, building scale in the competitive payments landscape requires continuous investment in technology and client acquisition.

Similarly, Wealth Management and Trust fees are showing strong traction. This area, which represents a high-growth, lower-market-share focus for Huntington Bancshares, saw fees increase 12% year-over-year in Q3 2025. The revenue for Wealth and asset management was $104 million for the quarter, up from $93 million a year ago. You need to watch this closely; these fee-based businesses are crucial for diversification, but they need to accelerate their market penetration.

Here's a quick look at the segment performance that characterizes these Question Marks based on Q3 2025 reported figures:

The Capital Markets business is another unit that fits the Question Mark description. It is a high-potential, fee-based service, but it remains a smaller part of the overall revenue mix, reporting $102 million in revenue for Q3 2025. While other fee categories showed strong growth, Capital Markets needs significant investment to increase its share of wallet with corporate clients, especially as global deal volumes are expected to be high in 2025.

The most capital-intensive Question Marks are the new geographic expansion efforts. Huntington Bancshares is making a significant push into places like Florida and the Carolinas. These efforts require substantial upfront investment before market share is defintely secured. For example, the Carolinas expansion, which includes plans for 55 new branches over five years, is a multi-year commitment. While the costs are considered 'well within our business-as-usual investment capacity that we planned in 2025 and beyond,' these are still cash outflows today for future returns.

The key actions required for these units are:

• Aggressively invest in the Payments business to quickly convert high growth into market leadership.
• Continue to fund Wealth Management to build scale against established competitors.
• Determine the optimal investment level for Capital Markets to move it out of the Question Mark quadrant.
• Monitor the initial hiring and branch setup costs in Florida and the Carolinas against projected long-term deposit capture goals.

If onboarding takes 14+ days, churn risk rises, which is a risk for any new market entry.