HGH - Heartland Group Holdings

[Beagle]

Nice to see some decent volume back in the stock today.

[winner69]

Nice to see some decent volume back in the stock today.

But its not going up

Seeing SKC get away with 'normalised' things which has a positive imoact on the share price and gives everybody the warm fuzzies I think Simon has to start 'normalising' things as well and report say $25m this half in the headlines

To keep it going they need something new ...... how about "Normalised take up of home equity release loans' - always higher than actual of course but if things had gone to normal expectations $25m would have been the number

Like it

[Beagle]

It's not going down either Winner, which given its recent gains is a pretty good sign.

Good news comes in threes they say. First was the capital requirement, second was the profit upgrade, third must be the next acquisition

Disc Hold.

Nicely said mate.

At grave risk of sounding like a broken record, some consolidation around the current level (after such strong recent gains), is a healthy thing.

[Snoopy]

Wolf - I took the interest margin of 4.44%‰ from the preso with full year results

http://www.sharetrader.co.nz/attachm...1&d=1416083026

Impressive looking chart eh. All they have recently said and shown in presentations suggest it going to get better, although the increase probably wont be as great as the last few years

But even so just another 0.1% point increase is another $3m in NOI

I am curious about this ever improving net interest margin of Heartland. Is there a way to calculate what is happening to the net interest margin without waiting for Heartland's annual slide presrentation?

The reserve bank has a collective margin table for all NZ banks

http://www.rbnz.govt.nz/statistics/tables/s20/

For the June 2014 quarter they list the net interest margin averaged over all 23 registered banks. So I guess those banks have suppied the reserve bank sufficient information to calculate it. But is there sufficient information on the net for Joe share investor to do the same?

'Investorwords' defines the net interest margin as follows:

"The dollar difference between interest income and interest expenses, usually expressed as a percentage of average earning assets"

(http://www.investorwords.com/3249/ne...st_margin.html)

The Heartland disclosure statement for FY2014 is here.

http://www.heartland.co.nz/uploadGal...nt%20Jun14.pdf

Note 8 from the Heartland declaration has:

1/ the 'total interest income' at $200.141m and
2/ the 'total interest expense' at $93.719m

The dollar difference on those two is $106.442m.

Now I can't see what the 'average earning assets' are, and these would not normally be declared at 'snapshot report time'. But if you go to the balance sheet, the 'end of year financial receivables' (a proxy for the average?) are $1,985.119m.

$106.442m / $1,985.119m = 5.36%

That is rather higher than the 4.44% quoted in Heartland's own chart. But not far enough out to indicate that I am totally going down the wrong road.

Since net interest margin seems to be one of the keys to Heartland going forwards, can anyone make a better fist of this calculation than I have?


SNOOPY

[Xerof]

two suggestions Snoopdog -

Firstly, take the average of opening and closing receivables, rather than just the closing.

Second, and I find this one easiest - take their word for it when they say 4.44%

[percy]

two suggestions Snoopdog -

Firstly, take the average of opening and closing receivables, rather than just the closing.

Second, and I find this one easiest - take their word for it when they say 4.44%

But wait !!!! There is another way!!!!
Phone CFO Simon Owen [09] 927 9151 and ask him.

[dingoNZ]

But wait !!!! There is another way!!!!
Phone CFO Simon Owen [09] 927 9151 and ask him.

Sounds like you already have him on speed dial

[Jantar]

But wait !!!! There is another way!!!!
Phone CFO Simon Owen [09] 927 9151 and ask him.

Lol. Ask a banker a question and expect to be told the truth? That is good.

[percy]

Lol. Ask a banker a question and expect to be told the truth? That is good.

I have spoken to and asked questions of the following Heartland people.
Bruce Irvine,Director.Returns phone calls and gives straight answers.
Simon Owen,CFO.Plain clear answers.
Craig Stephen.Has since left HNZ.Went out of his way to give me clear answers,and guidance.

[winner69]

oh percy .... Allison will be shattered that you forgot her

still have time to send her a red rose for valentines day