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PNC vs. HBAN: Which Bank Stock Offers Stronger Growth Story?

Zacks Investment Research - Zacks Investment Research - Fri Jul 10, 9:56AM CDT

When investors seek scale and stability among bank stocks, The PNC Financial Services Group, Inc. PNC and Huntington Bancshares Incorporated HBAN often emerge as prominent contenders. Both banks have built strong franchises through diversified lending operations, expanding deposit bases, and a broad focus on consumers, businesses and wealth management clients. However, both banks differ meaningfully in scale, profitability, growth strategy and shareholder returns.

PNC is expected to announce earnings on July 15 and Huntington is anticipated to report quarterly results on July 23. Ahead of these releases, investors may be wondering which of the two stocks offers the more compelling growth opportunity. Let us delve deeper and anlyze each bank growth prospects.

The Case for PNC

PNC Financial expects net interest income (NII) momentum to continue, supported by loan growth, asset repricing, deposit expansion, market investments, operational efficiencies and stabilizing funding costs. Over the six years ended 2025, the company’s NII saw a compound annual growth rate of 6.3%. Management expects NII to increase 14% year over year in 2026.

The company is also undertaking a major expansion of its U.S. branch network. PNC plans to open more than 300 branches across nearly 20 markets, renovate its entire branch network by 2029 and hire more than 2,000 employees by 2030 to support growth and customer service. By expanding into high-growth markets, PNC aims to strengthen its position as a leading financial institution serving consumers and businesses of varying sizes.

PNC has also been diversifying its operations through acquisitions, partnerships and strategic alliances. In January 2026, the company completed its acquisition of FirstBank Holding Company, significantly expanding its presence in Colorado and Arizona. In May 2025, it agreed to acquire Aqueduct Capital Group, enhancing fund-placement capabilities at Harris Williams, its global investment banking subsidiary.

PNC remains committed to returning capital to shareholders. Following the 2026 stress test, the company announced an 18% increase in its quarterly cash dividend to $2 per share. It also has an active share-repurchase authorization. Of the 100 million shares approved for repurchase in July 2022, nearly 32 million remained available as of March 31, 2026.

However, PNC’s growth initiatives involve substantial costs. Management expects $325 million in merger and integration expenses in 2026, including $150 million in the second quarter of 2026. Technology investments, branch expansion and rising personnel expenses are also likely to keep operating costs elevated and pressure near-term profitability.

The Case for HBAN

Huntington has expanded its geographic reach and capabilities across several business lines through acquisitions. In February 2026, the company completed its merger with Cadence Bank, strengthening its presence in Texas and the southern United States while expanding its branch network to nearly 1,400 locations across 21 states. In October 2025, Huntington acquired Veritex Holdings, accelerating its organic growth strategy in Texas by increasing its presence in the Dallas-Fort Worth and Houston markets. HBAN expects acquisition synergies, fee-income growth and capital returns to help it generate a return on tangible common equity of 18-19% by 2027.

The bank’s organic growth prospects also appear favorable. Huntington expects stand-alone NII to increase 10-13%, while Cadence is projected to contribute an additional $1.77-$1.82 billion in 2026. Growth is expected to be supported by rising loan balances, and stabilizing deposit and funding costs.

Huntington is also expanding in faster-growing markets, including the Carolinas, Texas and Florida. The company has been hiring commercial bankers and opening branches to attract deposits and deepen relationships with middle-market customers.

On the capital-return front, Huntington increased its quarterly dividend by 3.3% in October 2021 and has maintained the payout since then. Management has indicated plans to repurchase at least $550 million of shares in 2026 and approved a $3-billion share-repurchase authorization to replace the prior program. However, the company continues to prioritize funding loan growth and investing in strategic initiatives. As a result, the pace of share repurchases could be constrained if loan growth, acquisition-related adjustments or regulatory capital requirements increase.

Huntington’s rapid expansion also presents meaningful execution risks. Management expects $1.1 billion in incremental Cadence-related expenses in 2026, excluding nearly $500 million of remaining one-time costs. Successful integration and cost realization will therefore be crucial to Huntington’s earnings outlook.