Huntington's Arm to Divest Corporate Trust Business, Shares Up 3.05%

Shares of Huntington Bancshares HBAN gained 3.05% on Friday, following its decision to streamline operations by divesting the corporate trust and institutional custody business of its subsidiary, The Huntington National Bank (Huntington), to Argent Institutional Trust Company (AITC). This strategic move reinforces the company’s commitment to enhancing its core financial offerings, positioning itself for greater efficiency and long-term profitability

Details of HBAN's Divestiture Deal

While the financial terms of the agreement remain undisclosed, it involves the transfer of key client relationships, personnel, and operational infrastructure from Huntington to AITC. Post-transaction, AITC and Huntington will maintain a strategic relationship, with Argent continuing to provide corporate trust, escrow, and custody solutions to Huntington’s commercial banking clients.

Key Huntington personnel will transition to AITC, ensuring service continuity and expertise retention for clients. According to Melissa Holding, executive vice president and director of Wealth Management at Huntington, “Our mission is to keep clients at the center of all we do, and this relationship allows these corporate trust and institutional custody clients to continue to benefit from a high level of expertise, service, and commitment to their financial success.” Holding further added, “We’re confident that clients will continue to receive the exceptional service they have come to expect, and that both clients and colleagues will experience a seamless transition.”

HBAN's Focus on Core Banking Operations

Huntington Bancshares’ divestiture of its corporate trust and custody business reflects a strategic shift toward refining operations and strengthening its core banking services.

Last month, the company expanded its commercial banking business across the country by bringing its middle-market banking, particularly in Florida, demonstrating a commitment to deepening client relationships and optimizing financial offerings. Aligning with AITC for corporate trust solutions allows Huntington to streamline operations while ensuring seamless service continuity for its business clients.

Over the past year, shares of HBAN have gained 28.9% compared with 28.4% growth recorded by the industry.

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Currently, HBAN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Financial Firms

Similar to HBAN, earlier this month, Wells Fargo & Company WFC entered into a definitive agreement to divest its rail equipment leasing business to a newly formed joint venture between GATX Corporation and Brookfield Infrastructure. The deal is set to close by the first quarter of 2026, subject to regulatory approvals and customary closing conditions.

The divestiture will include the WFC’s entire portfolio of rail operating lease assets, valued at approximately $4.4 billion, and its rail finance lease portfolio. The sale is not anticipated to have a material impact on Wells Fargo’s financial position or earnings.

Likewise, last month, UBS Group AGs UBS subsidiary, UBS Asset Management (Americas) LLC, announced a definitive agreement to sell O’Connor, its hedge fund, private credit, and commodities business, to Cantor Fitzgerald as part of its ongoing strategy to streamline operations.

The initial completion of the transaction between UBS Group and O’Connor is expected during the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions.

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