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    Michael Carrier

    Research Analyst at Bank of America Merrill Lynch

    Michael Carrier's questions to AMTD IDEA (AMTD) leadership

    Michael Carrier's questions to AMTD IDEA (AMTD) leadership • Q3 2019

    Question

    Michael Carrier from Bank of America Merrill Lynch asked about the expense outlook for the next one to two years, considering branch closures, past tech investments, and a tougher rate environment.

    Answer

    President, CEO & Director Timothy Hockey emphasized a philosophy of positive operating leverage and making targeted expense cuts like a 'scalpel as opposed to an ax'. EVP & CFO Stephen Boyle added that expense growth would slow to the historic 2-4% range, possibly lower.

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    Michael Carrier's questions to AMTD IDEA (AMTD) leadership • Q2 2019

    Question

    Michael Carrier of Bank of America Merrill Lynch asked about available expense levers amid a weaker revenue backdrop and the company's ability to maintain positive operating leverage. He also sought context on the interest rate sensitivity disclosure, specifically the factors driving the wide range of impact from a potential Fed rate cut.

    Answer

    EVP and CFO Steve Boyle affirmed the commitment to positive operating leverage, stating they will tighten discretionary spending and expect expense growth to slow to the 2-4% range next year. President and CEO Tim Hockey added that while the commitment is firm, they avoid quarterly fire drills. Regarding rate sensitivity, Boyle explained the range depends on competitive pricing actions; the high end assumes reversing current betas, while the low end assumes more aggressive or lagging rate cuts on their part.

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