Huntington Bancshares continued its efficiencies push during the first quarter, saying it plans to keep expenses at a 1% to 3% increase over each quarter to offset upcoming economic uncertainty.

THE BIGGER PICTURE: The $189 billion bank’s noninterest expenses increased 3% year over year to $1 billion, according to the bank’s earnings supplement.

Huntington has launched an effort to reduce expenses, increase profits and regulate the pace of hiring, Chief Financial Officer Zach Wasserman said during an earnings call today.

“We are very intent on driving a low level of overall expense growth and really leveraging our ongoing program of efficiency initiatives,” he said. “We continue to drive outsized growth and self-fund investments within that overall low-growth framework.”

BY THE NUMBERS: Huntington posted for Q1:

• Total revenue increased 16% YoY to $1.9 billion;
• Mobile active users grew 8% YoY to 2.6 million;
• Digital logins rose 10% YoY to 207.6 million;
• Outside data processing and other services decreased 8% YoY to $151 million; and
• Equipment costs dipped by 21% YoY to $64 million.

NOTEWORTHY: Huntington is looking to boost efficiencies through its Operation Accelerate program, the bank’s approach to scaling operations via automation and lowering expenses by consolidating departments, thus cutting headcount, President and Chief Executive Steve Steinour said during Thursday’s earnings call.

“We completed a number of actions to support our ongoing efficiency programs such as the 31 branch consolidations [in Q1], the voluntary retirement program and our organizational realignment with reductions in personnel,” he said. “In addition to Operation Accelerate, we have a roadmap to deliver continued efficiencies going forward.”

FLASHBACK: Last year, the bank shuttered 63 locations as part of an ongoing branch optimization initiative, Brant Standridge, senior executive vice president and president of consumer banking business at Huntington, previously said at the bank’s Investor Day.

FUTURE LOOK: As economic uncertainty approaches, Steinour says the bank will weather turbulent times due to planning that has kept Huntington’s costs low.

“We are well positioned to operate through uncertainty with a focus on our long-term strategy and our commitment to top quartile returns,” Steinour said. “I believe Huntington is built to thrive during times like this and ultimately to benefit and to capture opportunities as they arise. Moments of market disruption present opportunities to take market share, to win new customers and to hire great talent. We are confident in our strategy and strong position.”

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