Huntington Bancshares Lowers 2027 Earnings Outlook Amid Rate Pressures

Huntington Bancshares reduced its financial guidance for 2026 and 2027, citing a challenging interest rate environment and heightened competition for loans and deposits. This downward revision follows previous estimates provided in April. It reflects the bank's effort to prioritize risk-adjusted returns over aggressive volume growth in a tightening market.

"What we won't do is change our credit discipline, and we're going to be very disciplined about our risk-adjusted returns," said Steve Steinour, CEO of Huntington Bancshares, in a statement regarding the outlook adjustment.

Revised Financial Projections

The bank now projects fiscal 2027 earnings per share (EPS) in the range of $1.75 to $1.83, a reduction from its April forecast of $1.90 to $1.93. Additionally, the bank lowered its 2026 net interest income growth projection to approximately 35%. This is down from its previous guidance range of 39% to 43%, according to a report by Yahoo Finance.

Management attributed part of the strategic shift to specific sectors where competitive pressures have intensified. The bank has chosen to pull back on certain lending segments to avoid eroding margins.

"There was a meaningful acceleration in terms of the competitive environment in indirect auto that caused us to want to reduce production," said Zach Wasserman, CFO of Huntington Bancshares, as reported by American Banker.

Capital Allocation Strategy

Despite the tempered earnings outlook, Huntington Bancshares announced plans to increase its share repurchase activity. The bank intends to deploy between $1.3 billion and $1.4 billion toward buybacks. This signals a commitment to returning capital to shareholders while it navigates a slower growth environment for net interest income.

What Is at Stake for Regional Banks

The adjustment highlights a trend among regional lenders struggling to balance loan volume against the rising cost of deposits. As interest rates remain elevated, banks are forced to choose between maintaining market share in competitive categories like auto lending or protecting their net interest margin. Huntington's decision to prioritize credit discipline over volume underscores the industry focus on maintaining asset quality in a cooling economic cycle.