Huntington Bancshares Cuts 2027 Outlook as Margin, Loan Growth Pressures Mount

Major U.S. banks, including JPMorgan, Bank of America, and others, raised their prime lending rate to 7% after the Federal Reserve's quarter-point rate hike. The move increases borrowing costs for consumers and businesses. Bank stocks fell, with BofA down 2.7%, Citi 2.4%, and JPMorgan 1%. Rate hikes may boost bank earnings but could also slow economic activity and impact credit quality.

U.S. stocks fell Wednesday after the Federal Reserve raised interest rates, with the S&P 500 down 0.4% and the Dow Jones dropping 1.2%. Fed Chairman Kevin Warsh indicated more hikes may come as inflation remains high. Traders expect rates to reach 4.25%-4.50% by year-end. Bank stocks declined, while AI-related stocks like Nvidia and AMD rose.

Top U.S. banks, including JPMorgan and Bank of America, raised their prime lending rate to 7% after the Federal Reserve's first rate hike since 2023. The Fed increased rates by 0.25% and signaled further hikes, aiming to combat inflation. Bank shares fell, with JPMorgan down 1% and Goldman Sachs down 4%. Higher rates boost bank earnings but may slow economic activity and reduce loan demand.

Huntington Bancshares (HBAN) shares fell 5.3% after lowering 2026 net interest income growth guidance to 35% from 39-43% and adopting a more conservative 2027 EPS target range of $1.75-$1.83, citing weaker loan volume and pressure on net interest margin.

Huntington Bancshares (HBAN) stock fell 2.0% to $16.41 in pre-market trading after lowering its fiscal 2027 EPS guidance to $1.75-$1.83, down from $1.90-$1.93, and revising 2026 net interest income growth forecast lower. The bank cited high short-term rates and deposit pricing competition. The stock's ex-dividend date is September 17.

Huntington Bancshares (HBAN) stock dropped 3% after lowering its fiscal 2027 EPS guidance to $1.75-$1.83 from $1.90-$1.93, citing higher rates and competition. 2026 net interest income growth forecast cut to 35% from 39-43%. Fee income growth outlook raised to 32% from 26.5-29.5%. Share repurchases increased to $1.3B-$1.4B.