Sign in

    Chris Harris

    Research Analyst at Wells Fargo

    Chris Harris's questions to AMTD IDEA (AMTD) leadership

    Chris Harris's questions to AMTD IDEA (AMTD) leadership • Q4 2019

    Question

    Chris Harris of Wells Fargo questioned the rationale for moving directly to zero commissions instead of a phased reduction and asked about the renegotiation timeline for the TD Bank agreement.

    Answer

    President & CEO Tim Hockey explained that their analysis of customer price sensitivity indicated that once a major competitor moved to zero, it was 'game over' for charging for trades, necessitating an immediate match. Regarding the TD Bank agreement, he stated that the notification for renewal is due by July 2021 for a 2023 effective date, providing ample time for discussions on deposit pricing.

    Ask Fintool Equity Research AI

    Chris Harris's questions to AMTD IDEA (AMTD) leadership • Q2 2019

    Question

    Chris Harris of Wells Fargo inquired about strategies to better monetize cash balances in purchased money market funds, suggesting the creation of a proprietary fund. He also asked if the company would consider offering more competitive interest rates on less transactional cash to support Bank Deposit Account (BDA) balances.

    Answer

    EVP and CFO Steve Boyle stated that the company receives remuneration on funds moved to sweep or purchased money funds, though it's less than BDA deposits. President and CEO Tim Hockey added that while they constantly evaluate new product options, they wouldn't pre-announce them. Hockey also explained that most cash is considered transactional, but tiered rates and other products are available for clients seeking yield, and the pressure for cash sorting seems to be abating.

    Ask Fintool Equity Research AI

    Chris Harris's questions to AMTD IDEA (AMTD) leadership • Q1 2019

    Question

    Chris Harris asked about the dynamics of interest-earning assets, specifically the mix shift between segregated cash and other cash, its impact on NII, and why the seg cash yield saw minimal growth.

    Answer

    CFO Steve Boyle clarified that the mix shift was due to idiosyncratic timing related to the year-end 15c3-3 calculation, which moved cash temporarily. He confirmed segregated cash carries a higher yield, which should benefit NII going forward, and noted that the prior quarter's yield calculation was incorrect, advising to use the current quarter as a baseline.

    Ask Fintool Equity Research AI