Bank Hapoalim: positive operating leverage is finally showing up
Revenue grew faster than expenses for the first time in three years and it happened without a one-off. That is the durable version of operating leverage.
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Discussion · 7
Thanks for showing the workings. The distinction between adequate reserves and the earnings path is well made. What does the bear actually have to be right about?
Respectfully, I think this overstates it. The channel data is what makes this hard to dismiss. How are you thinking about the timing risk here?
I think the setup matters more than the thesis here. The margin bridge is doing more work here than is acknowledged. Where does this break if rates back up another 50bp?
This lines up with what I saw in the filings. The distinction between adequate reserves and the earnings path is well made. Curious whether you would still size it the same at a higher entry.
Reasonable, and I have thought about it a lot. The sell side has the direction and not the magnitude, and the magnitude is the entire trade here.
Respectfully, I think this overstates it. The contract structure matters more than the headline rate. How much does this depend on the macro cooperating?
This is the one I get most. The read-across is real for the closest comparable and much weaker beyond it, because the contract structures differ.