Ben...

Ben inquired about the drivers behind Huntington Bancshares' deposit pricing outperformance and the expected deposit beta over the next 100 basis points of rate cuts. He also sought clarification on the 10 basis points of NIM expansion for next year, specifically if it's on a full-year basis and if fixed-rate repricing is the biggest driver.

Answer

CFO Zach Wasserman attributed deposit outperformance to exceptional execution by deposit teams on both rate and volume, underpinned by primary bank relationships and sophisticated analytical approaches, with a 40% beta observed in recent rate cuts. He confirmed the 10 basis points of NIM expansion is on a full-year basis for 2026, with fixed asset repricing being the most significant driver, stemming from lower roll-off yields compared to new production yields, and noted the company's asset-neutral position buffers rate scenarios.

Ben, via the online portal, asked for clarification on the portfolio change, specifically whether the Machine Automation business will become a separate division within Process Automation.

Answer

CEO Morten Wierod confirmed that Machine Automation will be moved into Process Automation as a separate division. He noted its performance is improving and it will continue to collaborate on projects across ABB, contributing its PLC and automation solutions where relevant, such as in the energy and infrastructure industries.