HGH - Heartland Group Holdings

[ziggy415]

I always thought one of the big 4 banks would be the one to buy HMY after 5 years. Maybe Heartland want them all for themselves.
They could be Australia's largest reverse mortgage lender as well as the largest personal lender.
Does this mean heartland have bought a blocking stake

[KJMLimited]

Whats the reasoning behind this?

[winner69]

"Following a series of discrete trades on market through the ASX beginning on 25 June 2021 and ending on 6 July 2021..."

Share price of Harmoney was up a whopping 10% on 30 June 2021. Yeah, that's really discrete lol

"Can't wait" to read in Te Reo in their annual review how this new expanded investment in fintech digital reengineering was strategically timed.

...and that 10% applies to the whole holding eh

But still facing quite a hit on the P&L at June because at half year HMY shares were still over $3

I sense a 'normalised' profit being reported

They might be able to change their accounting methodology and treat movements in such 'investments' through Other Comprehensive income

[Beagle]

Market is always forward looking so its neat how they will tell us what FY22's profit will be when they report next month. Their predicative ability is very cool.

[JohnnyTheHorse]

Heart always skips a beat when I see 5pm Friday announcements come through. But this one's a positive with another $45m MTN issue.

https://www.nzx.com/announcements/375432

Added some more today on the late afternoon dip.

[winner69]

HGH near the top of the losers board …..down 2.4% ….almost as bad as BLT

Things like this aren’t meant to happen

[nztx]

HGH near the top of the losers board …..down 2.4% ….almost as bad as BLT

Things like this aren’t meant to happen

Aussie Covid effect being looked at .. just across the ditch ? ;)

[dabsman]

Good day for HGH after picking up some very cheap HMY shares recently :)

[Dlownz]

Good day for HGH after picking up some very cheap HMY shares recently :)
Agree and after today rise it makes there purchase look genius

[percy]

https://smallcaps.us14.list-manage.com/track/click?u=ac3a9fdb691a7372f8b04b033&id=07017b2dbf&e=6c1ad5cc63

[Bob50]

Deleted-wrong thread.

[Snoopy]

https://smallcaps.us14.list-manage.com/track/click?u=ac3a9fdb691a7372f8b04b033&id=07017b2dbf&e=6c1ad5cc63


Would you rather take out a reverse mortgage from the Australian Federal Government at 4.5%, with lump sums now available:

"two lump-sum advances in any 12-month period, up to a total value of half of the maximum annual rate of the age pension."

which equates to

https://budget.gov.au/2021-22/content/factsheets/download/factsheet_super.pdf

$12,385 per year for singles, while couples combined could receive around $18,670.


OR...

https://www.heartlandfinance.com.au/reverse-mortgages/resources/interest-rate

....borrow from Heartland Australia at 5.6%. Hmmmm?

SNOOPY

[Beagle]

Pretty difficult to buy a luxury car, campervan, boat or whatever else is on your bucket list with $18,670...what's 1% per annum more when people are looking to live out their dreams in their latter years ?

Horses for courses, some people will be happy to work within the tight constraints of the Govt system, others will say, you know what, to heck with it, lets buy that dream toy and enjoy our golden years while our health is still okay.

From what I have seen and heard from luxury boat, car and campervan dealers there's an awful lot of people deciding to make "the most of life right now" because who knows what tomorrow may bring...

[Bjauck]

Would you rather take out a reverse mortgage from the Australian Federal Government at 4.5%, with lump sums now available:

"two lump-sum advances in any 12-month period, up to a total value of half of the maximum annual rate of the age pension."

which equates to

https://budget.gov.au/2021-22/content/factsheets/download/factsheet_super.pdf

$12,385 per year for singles, while couples combined could receive around $18,670.


OR...

https://www.heartlandfinance.com.au/reverse-mortgages/resources/interest-rate

....borrow from Heartland Australia at 5.6%. Hmmmm?

SNOOPY It is quite ironic for a coalition government to get into a business space occupied by Private enterprise. Nothing like a bit of socialism to fool the voters I guess. As Beagle says the maximum amount is quite limited these days. I guess for their government it beats having to increase the means testing thresholds and/or raising the Aussie old age pension

[percy]

I think it makes RELs more respectable.
Years ago it was looked down upon to buy a car on Hire purchase.
Now it is "the norm".
With Aussie Govt making RELs respectable ,I expect HGH's Australian RELs sales trajectory to take off,as RELs become "the norm.".

[ziggy415]

Can anybody remember average size of reverse mortgage taken out in aussie,

[Snoopy]

Can anybody remember average size of reverse mortgage taken out in aussie?


The flippant answer is that, if the size of the average loan taken out last year was 'L'. This year the size of the equivalent loan will be:

L - $18,670

The best exposition of the Heartland reverse mortgage situation remains the 19th November 2018 Presentation.

On slide 21, the average Australian Reverse Mortgage at discharge was $113k with a duration of 6.6years.

Assuming an interest rate of 6% over the duration of the loan

That equates to a loan at inception of: L (1.06)^6.6 = $113k => L =$77k

An average is just that, and will reflect the average of a distribution of different sizes of loans. Slide 26 of the presentation would suggest that around 58% of loans are under $50k at origination. What percentage of originating loans is below $20k, the information that would be most useful to know, is not disclosed.

SNOOPY

[KJMLimited]

Rising interest rates are good for lenders because deposit rates go up slower than lending rates. So the NIM widens. That's the theory anyway. But maybe the share price reflects that already.

[winner69]

On slide 21, the average Australian Reverse Mortgage at discharge was $113k with a duration of 6.6years.

Assuming an interest rate of 6% over the duration of the loan

That equates to a loan at inception of: L (1.06)^6.6 = $113k => L =$77k

SNOOPY

Hey Snoops. …do you do those ‘to the power off ‘ (compounding) calculations in your head? Or a special calculator?

[Snoopy]

Hey Snoops. …do you do those ‘to the power of ‘ (compounding) calculations in your head? Or a special calculator?


Any calculator that has an x^y function does the job. My head calculator doesn't have that function though!

SNOOPY

[dabsman]

Hey Snoops. …do you do those ‘to the power off ‘ (compounding) calculations in your head? Or a special calculator?

Open your phone calculator and turn the phone to landscape and all you need for 20 years of school and university right there

[winner69]

Global dairy prices seemed to top recently (this time around) and now heading down

Bit like Heartland share price

[Dlownz]

But if interest today in HGH. Is there a reason for the climb at the end of the day?

[winner69]

Announcement today

Heartland market update



Thought jeez Jeff been holding back this year and he has had to own up and say profit would be much higher than $86m


No - just full year results announcement date

[Beau]

Buyers starting to get in before 24th results great to see.

[sb9]

Buyers starting to get in before 24th results great to see.

Can’t keep lid on a good thing for too long.

[thegreatestben]

Always concerned when we see the SP jump like today, usually starts heading back down with more momentum than going up.

[RTM]

Always concerned when we see the SP jump like today, usually starts heading back down with more momentum than going up.

Really ? Set your nerves at rest, step back and take a look at the last 12 months or a bit more where the share price has steadily ground its way up from its COVID Low. It will help you deal with those small retractions. I guess it depends on ones time frame for ownership. For myself I am wondering about putting in a sell order should it again reach >12% of my portfolio.....currently 8 and rising.

[Beagle]

I'm currently at 8.5% portfolio allocation...feels like that's spot on for me. Happy to let it run up quite a bit further and quite sure it will.

[Mista_Trix]

I'm currently at 8.5% portfolio allocation...feels like that's spot on for me. Happy to let it run up quite a bit further and quite sure it will.

How many stocks and what are your rules around rebalancing - timeframes etc?

[pierre]

I'm currently at 8.5% portfolio allocation...feels like that's spot on for me. Happy to let it run up quite a bit further and quite sure it will.
At 12.6% of my portfolio at this minute and Im happy to keep holding. Im expecting to see a significant increase in the dividend (looks like Mr Market is too) so Im happy to continue to hold.

[winner69]

At 12.6% of my portfolio at this minute and Im happy to keep holding. Im expecting to see a significant increase in the dividend (looks like Mr Market is too) so Im happy to continue to hold.

‘Normalised’ earnings will come in a fraction over guidance

The revaluation downwards of their Harmoney is covered by part of the covid overlay which they’ll write back …reported profit a few million more than guidance …..unless Jeff finds something else he needs to ‘proactively provide for’

No worries …even F22 forecast will be good.

[RTM]

Really ? Set your nerves at rest, step back and take a look at the last 12 months or a bit more where the share price has steadily ground its way up from its COVID Low. It will help you deal with those small retractions. I guess it depends on ones time frame for ownership. For myself I am wondering about putting in a sell order should it again reach >12% of my portfolio.....currently 8 and rising.

That would be around $3.15 so I think I am safe for a while. And of course, the rising tide could lift all the boats.

[RTM]

How many stocks and what are your rules around rebalancing - timeframes etc?

I don't know about Mr Beagle but I have too many stocks, no rules around rebalancing and no set time frames. I do start to get thoughtful when anything exceeds around 12%. I also scratch my head a bit about anything with a > 100% gain. Usually I just sit on them. Occasionally I get lucky and sell (SML @ 10) or maybe a portion (Scales).

[nztx]

‘Normalised’ earnings will come in a fraction over guidance

The revaluation downwards of their Harmoney is covered by part of the covid overlay which they’ll write back …reported profit a few million more than guidance …..unless Jeff finds something else he needs to ‘proactively provide for’

No worries …even F22 forecast will be good.


by chance do you have the numbers for the next 4 weeks Powerballs ? ;)

Ta :)

[winner69]

by chance do you have the numbers for the next 4 weeks Powerballs ? ;)

Ta :)

Don’t want anybody to win Powerball for several weeks …wait until it’s up to $20m

[nztx]

Don’t want anybody to win Powerball for several weeks …wait until it’s up to $20m

$80 mil in Oz on Thursday would be cool .. ;)

could have even more fun 'buying the Bank' .. ;)

[thegreatestben]

Aha I’m running 37% HGH, bought in at around 1.08 I think. Maybe that’s why I’m nervous.

[nztx]

Aha I’m running 37% HGH, bought in at around 1.08 I think. Maybe that’s why I’m nervous.


why be nervous ? .. you appear to have fairly sizeable unrealised cushion there :)

I'm currently around 47.5% across two shares in NZ equities here .. but that fluctuates with bucks
in offshore markets coming or going, and can change daily ..

[Beagle]

I don't know about Mr Beagle but I have too many stocks, no rules around rebalancing and no set time frames. I do start to get thoughtful when anything exceeds around 12%. I also scratch my head a bit about anything with a > 100% gain. Usually I just sit on them. Occasionally I get lucky and sell (SML @ 10) or maybe a portion (Scales).

For what its worth on very rare occasions I am happy to buy up to 15% portfolio allocation for REALLY high conviction positions and let it run of its own momentum to as high as 20% before rebalancing. I see Kingfish seem to have a similar approach with their maximum capped at about 20%. Its up to each person to decide for themselves what their risk tolerance is in terms of the maximum in any one company...other than my signature line I have given up, (which I am sure will be a tremendous relief to some lol), preaching about the merits of diversification.

Back to HGH...nice to see this starting to gather a little bit of steam on solid volume. I remain confident this is tracking north and should continue to do so very nicely in the foreseeable future and is very well supported by both TA and fundamentals. Its really cool how HGH tell you what next years profit is going to be when reporting current years profit so I look forward to their FY22 forecast later this month with considerable interest.

[ScrappyO]

Its really cool how HGH tell you what next years profit is going to be when reporting current years profit so I look forward to their FY22 forecast later this month with considerable interest.

Yes, it keeps the share price ticking along with out the wild speculations.

[peat]

looks like a break out here.... 2.10 held for a while but now is support.

[Snow Leopard]

$2.16 New All Time Closing High knocking 15-Dec-2017 off the top of the podium.

Also over 15% of my NZX portfolio so no DRiP for me.

[Beagle]

$2.16 New All Time Closing High knocking 15-Dec-2017 off the top of the podium.

Also over 15% of my NZX portfolio so no DRiP for me.

Woo Hoo !! For some strange reason I remember that day you mentioned quite well ;)

I have no interest whatsoever in selling this time and will continue with the DRIP. Wonder what the dividend announcement will be ? My guess 6 cps (fully imputed as usual).

[RTM]

....or should I be grateful as a shareholder ? Certainly clarifies why I have no cash with HGH anymore.

12838

[pierre]

....or should I be grateful as a shareholder ? Certainly clarifies why I have no cash with HGH anymore.

12838
If you don't like the interest rates you'd receive from Heartland you could always invest with one of the big banks like ANZ.

They are currently paying 0.05% on an ordinary savings account and up 0.20% on a "serious saver" (haha) account.

Guess all these rates explain why the share market is increasingly popular.

[nztx]

....or should I be grateful as a shareholder ? Certainly clarifies why I have no cash with HGH anymore.

12838


that assumes one manages to navigate through the sea of AML Documentary B**L***** to get there first .. ;)

Know a few who got lost along the way & in frustration abandoned attempts ..

Needless to say, they're smiling on their choice of owning a slice of the bank instead .. ;)

[Bjauck]

....or should I be grateful as a shareholder ? Certainly clarifies why I have no cash with HGH anymore.

12838
It is a more difficult decision to have cash and term deposits when the interest rates are so far below the CPI inflation rate! However with asset prices at current levels and with a lot of uncertainty with Covid progression, My bank deposits have never been higher. I have split them between Heartland and two big Australian owned Banks. Heartland rates are slightly higher. Heartland Bank shares also comprise about 7% of my share portfolio.

[winner69]

It is a more difficult decision to have cash and term deposits when the interest rates are so far below the CPI inflation rate! However with asset prices at current levels and with a lot of uncertainty with Covid progression, My bank deposits have never been higher. I have split them between Heartland and two big Australian owned Banks. Heartland rates are slightly higher. Heartland Bank shares also comprise about 7% of my share portfolio.

The option value of cash at the moment is quite high

[RTM]

It is a more difficult decision to have cash and term deposits when the interest rates are so far below the CPI inflation rate! However with asset prices at current levels and with a lot of uncertainty with Covid progression, My bank deposits have never been higher. I have split them between Heartland and two big Australian owned Banks. Heartland rates are slightly higher. Heartland Bank shares also comprise about 7% of my share portfolio.

I am in a similar position with respect to cash. And quite concerned about the effect of inflation on it.

[Beagle]

I feel the same way. Yes its a bit unsettling getting an interest rate on cash and short term deposits that's well below inflation but its even more unsettling what might happen if what's happening in Australia happened here. In effect the difference between the annual inflation rate and the rate one gets after tax on cash and short term deposit is the price of the optionality you're getting. i.e. the price of optionality is quite high. I agree 100% with Winner69 that the value you're getting in regard to optionality is also quite high at the moment.

[davflaws]

I have to say I don't understand why anyone would hold a lot of cash. If I place a sell order because I need some substantial $s, the money is in my Kiwibank working a/c in two days, and that timeframe works just fine for any emergency I can think of.

If I want to buy some other shares with what I get from the ones I sell, I can do that the same day (though I don't trade and haven't for years - in fact since PRC)

[Beagle]

Like a lot of other people you think its best to be fully invested. Others think the market is fully priced and are awaiting a pullback in some share prices before deploying some of their cash. Others fell good about having liquid resources while we live in these interesting times. No perfect answer to what's the ideal cash allocation, if any. I go with what my gut tells me feels right.

[dobby41]

Like a lot of other people you think its best to be fully invested. Others think the market is fully priced and are awaiting a pullback in some share prices before deploying some of their cash. Others fell good about having liquid resources while we live in these interesting times. No perfect answer to what's the ideal cash allocation, if any. I go with what my gut tells me feels right.

Generally, I go with what lets me sleep at night.

[Getty]

Anyone who thinks HGH is investable @$2.14, could cast their eye over GFL @ 71c

PE 16.31 vs 8.37.

NTA 112 vs 37.17

Div 3.04% vs 5.28%.

GFL more likely to be a takeover target too, even HGH said they were looking for acquisitions.

[Beagle]

I have to say I don't understand why anyone would hold a lot of cash. If I place a sell order because I need some substantial $s, the money is in my Kiwibank working a/c in two days, and that timeframe works just fine for any emergency I can think of.

If I want to buy some other shares with what I get from the ones I sell, I can do that the same day (though I don't trade and haven't for years - in fact since PRC)

What's happening today is what I have been expecting for quite some time. Its always been a question of when (not if), their will be a Delta outbreak in the community. As hinted above, I have a significant allocation to cash for the reason of what opportunities this new outbreak might throw up.

[winner69]

What's happening today is what I have been expecting for quite some time. Its always been a question of when (not if), their will be a Delta outbreak in the community. As hinted above, I have a significant allocation to cash for the reason of what opportunities this new outbreak might throw up.

The OPTION VALUE OF CASH just got heaps more valuable eh

[Beagle]

The OPTION VALUE OF CASH just got heaps more valuable eh

HEAPS more valuable indeed !

[STr]

sooooo ... what will be the opportunities. Perhaps MFB may get some new life

[101nick101]

What's happening today is what I have been expecting for quite some time. Its always been a question of when (not if), their will be a Delta outbreak in the community. As hinted above, I have a significant allocation to cash for the reason of what opportunities this new outbreak might throw up.

You are a smart pooch.

[Beagle]

You are a smart pooch.

You're too kind. Cautious old mutt probably better describes me.

Keeping an eye on KPG - I've said for some time they are directly in the firing line of a delta outbreak.
Could be good buying around 80 cents if this outbreak gets really ugly.

[Bjauck]

HEAPS more valuable indeed ! The events today, have shown how pertinent this discussion has been. The low interest earned on my deposits no longer seem so low.

[Beagle]

It is a more difficult decision to have cash and term deposits when the interest rates are so far below the CPI inflation rate! However with asset prices at current levels and with a lot of uncertainty with Covid progression, My bank deposits have never been higher. I have split them between Heartland and two big Australian owned Banks. Heartland rates are slightly higher. Heartland Bank shares also comprise about 7% of my share portfolio.


The events today, have shown how pertinent this discussion has been. The low interest earned on my deposits no longer seem so low.

Yes its hard to believe we only started talking about this yesterday. I for one have been extremely reluctant to mention the percentage allocation to cash and short term deposit in case people thought I was unhinged so thank you for starting the conversation. Won't mention percentage allocations now either because its not cool to talk about it after the option value of cash has just shot up so much.

[101nick101]

You're too kind. Cautious old mutt probably better describes me.

Keeping an eye on KPG - I've said for some time they are directly in the firing line of a delta outbreak.
Could be good buying around 80 cents if this outbreak gets really ugly.

Sold out of KPG not 2 days ago, will be keeping an eye on how AIA opens as well.

[Beagle]

Sold out of KPG not 2 days ago, will be keeping an eye on how AIA opens as well.

Great timing !!!

[RTM]

You're too kind. Cautious old mutt probably better describes me.

Keeping an eye on KPG - I've said for some time they are directly in the firing line of a delta outbreak.
Could be good buying around 80 cents if this outbreak gets really ugly.

If it gets really ugly there will be a few more opportunities than KPG. For example, recall what happened to OCA ?
Pleased I have a significant amount of cash. Although like last time...I could well be like a possum in the headlights trying to decide what to buy or sell.

[Beagle]

If it gets really ugly there will be a few more opportunities than KPG. For example, recall what happened to OCA ?
Pleased I have a significant amount of cash. Although like last time...I could well be like a possum in the headlights trying to decide what to buy or sell.

Yes mate...the headlights are so bright with Covid its difficult to see anything with real clarity. I might start a new thread soon along the lines of what opportunities are you looking to pounce on in this lockdown ?

Give us something to do and talk about while we sit here endlessly bored with yet another lockdown. "Go hard and go early". You wouldn't find a bookie even prepared to give you $1.01 back on the dollar for Cindy to say that at the 6.00 p.m. press conference this evening !

[Bjauck]

…
Give us something to do and talk about while we sit here endlessly bored with yet another lockdown. "Go hard and go early". You wouldn't find a bookie even prepared to give you $1.01 back on the dollar for Cindy to say that at the 6.00 p.m. press conference this evening ! I lost count of the number of times it was used before I logged onto online shopping to order my truck load of bog rolls. A week may be a long time in politics but a day is even longer for financial markets.

Best of luck and good health to all for the forthcoming lockdown.

[Baa_Baa]

I lost count of the number of times it was used before I logged onto online shopping to order my truck load of bog rolls.

It was 2050 when little Johnny opened the last toilet roll from his grandparents hoarding during the covid pandemic.

[nztx]

How far things twitch could well come later when lock down extensions or their withdrawal
/ ease back occurs . Bound to be some sort of shockwave effect with tomorrow's opening IMO

Then again, the avalanche of Retail Investors will all be on deck at a loose end ready to play again .. ;)

Payday Wednesday or Thursday may see a bit of a rebound .. :)

[Old mate]

Bit of a price drop before results tomorrow.

[pierre]

Bit of a price drop before results tomorrow.

Yes - a bit surprising. I'm sure - to repeat Percy's mantra - they will do what they said they would do.

And who knows, Jeff might even have a pleasant surprise or two up his sleeve - like the dividend for example?

[thegreatestben]

Bad day for HMY is a bad day for HGH?

[RTM]

Bit of a price drop before results tomorrow.

Yes, waiting with interest. If I recall correctly, these guys often keep us waiting till later in the morning. Still…. Have STU and SUM to mull over in the meantime.

[sb9]

Yes, waiting with interest. If I recall correctly, these guys often keep us waiting till later in the morning. Still…. Have STU and SUM to mull over in the meantime.

Yep, gotta wait till at least 9.30. What they say, bankers are not early starters...

[pierre]

Yep, gotta wait till at least 9.30. What they say, bankers are not early starters...

Probably have lots of beans to count - need every available minute before 10am to make sure they don't miss any. :)

[Beagle]

All that translation into Te Reo that we absolutely "love" takes a bit of extra time ;)

[Sideshow Bob]

Heartland announces full year NPAT of $87.0 million - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/377825)

Heartland announces full year NPAT of $87.0 million

24/8/2021, 9:33 amFLLYRNZX/ASX release

Heartland announces full year NPAT of $87.0 million (or $87.9 million on an underlying basis after removing the impacts of one-offs)
24 August 2021

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce a net profit after tax (NPAT) of $87.0 million for the financial year ended 30 June 2021 (FY2021), an increase of $15.1 million (20.9%) compared with the financial year ended 30 June 2020 (FY2020).

On an underlying basis, FY2021 NPAT was $87.9 million, an increase of $11.0 million (14.3%) compared with the FY2020 underlying NPAT.

Highlights for FY2021

‒ NPAT of $87.0 million, up 20.9% ($15.1 million). Underlying NPAT of $87.9 million, up 14.3% ($11.0 million) on FY2020 underlying NPAT.
‒ One-off items had a $0.8 million net impact on NPAT, consisting of $4.1 million of one-off net gains and $6.9 million of one-off expenses (net of tax).
‒ Gross finance receivables (Receivables) of $5.0 billion, up 7.9% ($368.5 million).
‒ Return on equity (ROE) of 11.9%, up 144 basis points (bps).
‒ Net interest margin (NIM) of 4.35%, up 2 bps.
‒ Net interest income (NII) of $233.5 million, up 7.8%.
‒ Cost to income (CTI) ratio of 46.8%, up 1.5 percentage points (pps). Underlying CTI ratio of 44.8%, down 0.1 pps, and CTI ratio of 43.9% for the second half of FY2021 (2H2021).
‒ Impairment expense as a percentage of average receivables decreased from 0.65% in FY2020 to 0.31% in FY2021.
‒ FY2021 final dividend of 7.0 cents per share (cps), taking FY2021 total dividend to 11.0 cps – an increase of 4.0 cps from FY2020 due to the easing of restrictions imposed by the Reserve Bank of New Zealand (RBNZ) on distributions by banks in New Zealand.
‒ Earnings per share (EPS) of 14.9 cps, up 2.4 cps.
‒ Heartland Bank Limited (Heartland Bank) remains one of two Australasian banks to have no reduction or adverse change to its ratings or outlook by Fitch Ratings since January 2020.
‒ Further digitalisation and continuous integration of product applications and platforms in New Zealand and Australia.
‒ New Zealand Reverse Mortgages awarded Consumer Trusted Accreditation (fourth consecutive year).
‒ Australian Reverse Mortgages awarded Your Magazine’s 5-Star Lender Award and InfoChoice’s Best Reverse Mortgage Award.
‒ Heartland Bank awarded Canstar Savings Bank of the Year 2021 (fourth consecutive year), and 5-Star Ratings for Outstanding Value for its Direct Call and YouChoose accounts.
‒ Heartland Bank became the National Foundation for Deaf and Hard of Hearing’s first Hearing Accredited Workplace.

See the attachments to this release, including the FY21 Results Release for further information.
- Ends -

[pierre]

Yes - a bit surprising. I'm sure - to repeat Percy's mantra - they will do what they said they would do.

And who knows, Jeff might even have a pleasant surprise or two up his sleeve - like the dividend for example?

Nice outcome for the year NPAT $87m up 20.9% - and yes Jeff did have a nice divvie surprise. Final of 7cps making total for the year 11cps.

[winner69]

Jeff will manage F22 profit to $97m (even though he says $93m to $96m)

That's all what matters

[iceman]

Yet another a stunning result. The numbers I always look at with most interest are all looking good:
- Return on equity (ROE) of 11.9%, up 144 basis points (bps).
- Net interest margin (NIM) of 4.35%, up 2 bps.
- FY2021 final dividend of 7.0 cents per share (cps), taking FY2021 total
dividend to 11.0 cps

[RTM]

Yet another a stunning result. The numbers I always look at with most interest are all looking good:
- Return on equity (ROE) of 11.9%, up 144 basis points (bps).
- Net interest margin (NIM) of 4.35%, up 2 bps.
- FY2021 final dividend of 7.0 cents per share (cps), taking FY2021 total
dividend to 11.0 cps

Yes...agree. Great result, as a retiree love the dividend
SUM tick
STU tick
HGH tick
Now just got to see what the market thinks. Not that it makes a lot of difference either way to me.

[KJMLimited]

Is there a potential capital raising to fund the purchase of the Harmoney escrow shares that get released on Sep 1?

[whatsup]

Bad day for HMY is a bad day for HGH?

Could have some flow on to HMY ?

[fish]

Yet another a stunning result. The numbers I always look at with most interest are all looking good:
- Return on equity (ROE) of 11.9%, up 144 basis points (bps).
- Net interest margin (NIM) of 4.35%, up 2 bps.
- FY2021 final dividend of 7.0 cents per share (cps), taking FY2021 total
dividend to 11.0 cps

More than I expected in a nice way .
Initially I expected the lockdown would result in a fall in SP but happily I think I am going to be proved wrong !
In the last week I have really started using online delivery and would happily not go out shopping again to a supermarket-had a nice delivery to the door this morning from petdirect-significantly cheaper than supermarket

[invest]

spectacular result from a solid business.
the dividend yield is strong, which will attract those chasing income.


Yet another a stunning result. The numbers I always look at with most interest are all looking good:
- Return on equity (ROE) of 11.9%, up 144 basis points (bps).
- Net interest margin (NIM) of 4.35%, up 2 bps.
- FY2021 final dividend of 7.0 cents per share (cps), taking FY2021 total
dividend to 11.0 cps

[Beagle]

Excellent result and well pleased with the larger than expected final dividend of 7 cps, a record.
Looking ahead they expect $93 - $96m which is slightly ahead of my expectations with the mid point being $94.5m.
Early calculations, I have them on a forward PE of 13.2 and a gross yield of 7.5% (assuming eps of 16 cps which is midpoint of their forecast and dividends of 11.5 cps).
Very happy holders and signed up to their dividend reinvestment plan quite some time ago. I am expecting a record high closing share price today.

[percy]

More than I expected in a nice way .
Initially I expected the lockdown would result in a fall in SP but happily I think I am going to be proved wrong !
In the last week I have really started using online delivery and would happily not go out shopping again to a supermarket-had a nice delivery to the door this morning from petdirect-significantly cheaper than supermarket

With the extra divie you may be able to give up the pet food...lol

[invest]

Thanks Beagle - agree. Only regret is not buying more...


Excellent result and well pleased with the larger than expected final dividend of 7 cps, a record.
Looking ahead they expect $93 - $96m which is slightly ahead of my expectations with the mid point being $94.5m.
Early calculations, I have them on a forward PE of 13.2 and a gross yield of 7.5% (assuming eps of 16 cps which is midpoint of their forecast and dividends of 11.5 cps).
Very happy holders and signed up to their dividend reinvestment plan quite some time ago. I am expecting a record high closing share price today.

[percy]

Yes ticked all the boxes.

[Beau]

Yes thanks Jeff and the team very happy long term holder.

[thegreatestben]

That's a nice divvie, happy to accept these for the foreseeable future :)

[RGR367]

Yeah a nice day for a lockdown indeed when this 7 cents dividend jive with the 7% weighting of this stock on my portfolio.
Keep the good news coming this week :t_up:

[Soolaimon]

Yes thanks Jeff and the team very happy long term holder.

Ditto, great stock to own.

[Beagle]

Yes...great stock to own. One of the keys to income investing in retirement (or as one approaches retirement), is to find companies that can pay you excellent fully imputed dividends that grow over time.
HGH could easily pay 12 cps, (up from 11 cps in FY21) in fully imputed dividends in FY22 reflecting their forecast ~ 8% eps growth.

Its easy to take our imputation system for granted. The reality is not that many OECD countries have such a system.

[Beau]

Yes...great stock to own. One of the keys to income investing in retirement (or as one approaches retirement), is to find companies that can pay you excellent fully imputed dividends that grow over time.
HGH could easily pay 12 cps, (up from 11 cps in FY21) in fully imputed dividends in FY22 reflecting their forecast ~ 8% eps growth.

Its easy to take our imputation system for granted. The reality is not that many OECD countries have such a system.
I like what I’m reading also someone looking towards their future retirement leave it in the dividend reinvestment plan and it builds up very nicely indeed.

[Monarch]

Steady as she goes. This has been one of my better investments, it has grown to 10% of my portfolio at this point. With a forward PE of ~13.5 it is very tempting to make it 15%!

[Bjauck]

Yes...great stock to own. One of the keys to income investing in retirement (or as one approaches retirement), is to find companies that can pay you excellent fully imputed dividends that grow over time.
HGH could easily pay 12 cps, (up from 11 cps in FY21) in fully imputed dividends in FY22 reflecting their forecast ~ 8% eps growth.

Its easy to take our imputation system for granted. The reality is not that many OECD countries have such a system. I am a happy holder too. Imputation credits certainly help to avoid double taxation of dividends. Instead of imputation credits, other OECD countries provide a personal income tax-free dividend allowance and personal investment and pension schemes with preferential tax regimes and the ability make before tax gross contributions.

[value_investor]

Awesome result, great dividend stock to have in my portfolio. I started adding to my position from April last year until the end of the year and its become the biggest part of my portfolio now.

My only problem is if I want to reinvest or keep the cash (I'll likely reinvest).

I think the guidance is watered down a bit, but its a HGH thing they like to update. I actually prefer it this way, more upside in the future.

[sb9]

Muted reaction from market in terms of volume, bugger all so far, however price moved up exactly by divvy amount.

[winner69]

I think the guidance is watered down a bit, but its a HGH thing they like to update. I actually prefer it this way, more upside in the future.

Jeff will deliver (ie manage profit) slightly more than $96m but we won't know until closer to the time

Bit of a worry he now uses reported and 'normalised' earnings ....unlike him


more

[Snow Leopard]

Seems to be an OK sort of result does it not?

12877

[Beagle]

The cat and the dog are both very contented but note even with paws folded I always keep my eyes open for more bargains


12882

[winner69]

You have to admire Jeff (and his finance team) for managing reported profit to expectations.

With ‘voluntary acceleration’ of some amortisation, proactive provisioning, clearing out some old debts and even the suspense account he still came in slightly over guidance. And see I didn’t mention the value they put on Harmoney (which went up)

Ang heck they are still holding the $9.5m covid overlay

Could have reported $100m plus if he wanted but heck why do that if punters are excited over $87m. Leave it all in the bottom drawer eh.

Only Grant Robinson has more little cubby holes of hidden cash …big difference is that Jeff’s bottom drawer is real, unlike Grant’s nebulous ones that need more debt to fill up.

[Rawz]

You have to admire Jeff (and his finance team) for managing reported profit to expectations.

With ‘voluntary acceleration’ of some amortisation, proactive provisioning, clearing out some old debts and even the suspense account he still came in slightly over guidance. And see I didn’t mention the value they put on Harmoney (which went up)

Ang heck they are still holding the $9.5m covid overlay

Could have reported $100m plus if he wanted but heck why do that if punters are excited over $87m. Leave it all in the bottom drawer eh.

Only Grant Robinson has more little cubby holes of hidden cash …big difference is that Jeff’s bottom drawer is real, unlike Grant’s nebulous ones that need more debt to fill up.

Agree Winner. Looks like a comfortable 10% eps growth will be hit every until the next cycle.

HMY revaluation gains to be had for the next few years as well I reckon.

How does HLG compare to its peers thou?

[Beagle]

WOW - Just noticed that there's no mucking about with the record 7 cent dividend. Its paid super quick and the shares go ex dividend on 31 August !

Maybe I am not the only one that's noticed this as the shares just hit a fresh all time high of $2.21 !

I think we're on our way to your $2.50 this time Winner :t_up:

[Beagle]

Posted 14 June 2021.


I know you use other ways to assess fair value relative to Aussie banks and that's fine mate but I will stick with earnings. As I said last week I see fair value at about $2.30 but you could be right and that $2.30 might be now, not in 12 months time.
The answer to your question is that will be very much determined by their profit forecast for FY22, which hopefully we will be blessed to know when they announce their FY21 result in August.
Just double checking off market screener now

The market is always forward looking as we know mate so is starting to think about FY22 earnings and leaving aside the outlier CBA (which is on a forward FY22 PE of 20.2) based on Friday's closing prices the peer group I follow is currently trading in a fairly tight range based on 13.1 x - 14.7 (average 14.14) x FY22 forecast earnings.

If we apply the same PE to HGH based on average analyst expectations for FY22 of 89.7m earnings we get fair value now of $2.16
If HGH can issue an FY22 forecast of about the $94m earnings level we've been recently talking about then that suggests eps of just over 16 cps for FY22 and fair value in late August 2021 of 14.14 x 16.04 cps = $2.27....

12885

NB: Eyes closed means super contented state but nose is still working and looking for more dog food wherever it can be found.

[invest]

spot on! HGH hit $2.27 high today

[pierre]

You are a very handsome chap (dog) Beagle - especially when you look so happy!

I'm very happy with my HGH holding and this year's result too but don't tend to leave my tongue hanging out quite so much - except when salivating about the upcoming divvie and the growth in the SP. :)

[winner69]

Beagle - think you can make font bigger than what used

$2.27

[Beagle]

Beagle - think you can make font bigger than what used

$2.27

Good idea mate then I wouldn't need my glasses :)

12887

Topped up with some more today, my rating BBB+ ;)

Disc: The hound saved a lot of time this year by just reading the presentation which amazing enough is still ALL in good old fashioned English. https://www.bing.com/videos/search?q=kia+ev6+gt&qpvt=kia+ev6+gt&view=detail&mid=DA161D47358228BD3EF3DA161D47358228BD3EF3&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3Dkia%2Bev6%2Bgt%26qpvt% 3Dkia%2Bev6%2Bgt%26FORM%3DVDRE

[sb9]

Get in quick for divvy, only 2 more trading days after today before it goes XD on 31 Aug.

[Snow Leopard]

Despite having sold a few shares along the way when it was overpriced I still have some of the original ones I bought at 55c way back in olden days and it is now over $2.20.

Been a nice little earner capital wise over the years, and then there are all those dividends.

[RTM]

Despite having sold a few shares along the way when it was overpriced I still have some of the original ones I bought at 55c way back in olden days and it is now over $2.20.

Been a nice little earner capital wise over the years, and then there are all those dividends.

They've changed their ticker so many time that I'm not quite sure what I've done over the years. Don't think I sold any and my cost averages 106c.
And yes...love the dividends as well.

[iceman]

They've changed their ticker so many time that I'm not quite sure what I've done over the years. Don't think I sold any and my cost averages 106c.
And yes...love the dividends as well.

You're not wrong there. I think they've had either 3 or 4 tickers while I've owned them. Sure has been a great investment.

[Beagle]

I originally backed up the truck after the credit rating upgrade (de-risked) at 85 cents and there might have been a few well timed changes to my holding size since then....and then as others have noted, there's the dividends of which the one pending is at an all time record high.

[Snow Leopard]

You're not wrong there. I think they've had either 3 or 4 tickers while I've owned them. Sure has been a great investment.

I think they listed as Building Society Holdings or similar, maybe, can not remember the code.
Then Heartland New Zealand (HNZ)
Then Heartland Bank (HBL)
now Heartland Group Holdings (HGH) [aka HNZ2]

Is that right?

[winner69]

For a few days years ago I was the only person in the whole wide world who had lost money on Heartland


Bought at 98 cents on a breakout …..price retreated …but it came right

[davflaws]

I think I first got in when they were part of PGW. It was years ago and there was some sort of split which felt slightly "dodgy", and I went with the finance part. Someone with more remaining brain cells than I have may be able to enlighten us.

[Greekwatchdog]

I thought it was PGC? You got xx amount Heartland shares for every PGC Share held.. Been a good earner from that point..

[RTM]

I think I first got in when they were part of PGW. It was years ago and there was some sort of split which felt slightly "dodgy", and I went with the finance part. Someone with more remaining brain cells than I have may be able to enlighten us.

Was it PGC..? And then Percy was very encouraging....and right.

[Mista_Trix]

Was it PGC..? And then Percy was very encouraging....and right.

I miss Percy. He's king of the testosterone shirtless traders on Facebook - I don't think they know what they've got or how lucky they are.

[iceman]

I think they listed as Building Society Holdings or similar, maybe, can not remember the code.
Then Heartland New Zealand (HNZ)
Then Heartland Bank (HBL)
now Heartland Group Holdings (HGH) [aka HNZ2]

Is that right?

Yes that all rings a bell. Remember buying my first lot under the BSH ticker

[Snow Leopard]

I am going to give a plug for delisted/investogain here.

They are very useful for confirming the history & old nom de ticker of NZ & AU companies:

https://www.investogain.co.nz/company/heartland-group-holdings-limited-16508/

[Beagle]

I miss Percy. He's king of the testosterone shirtless traders on Facebook - I don't think they know what they've got or how lucky they are.

He's still around.

[percy]

Yes that all rings a bell. Remember buying my first lot under the BSH ticker

My memory is slipping,so my have CBS name slightly wrong..
PGC merged with Northern Building Soc,and Canterbury Building Soc to form BSH.HGH Chairman Geoff Ricketts came from NBC where he was a major shareholder.Remains a major HGH shareholder.
The days were numbered for building socs, yet their steady capital from loyal depositors was just what PGC's Marac needed.
Two of the big driving forces were now disgraced former directors George Kerr and Bryan Mogridge.
Current directors Geoff Ricketts and Bruce Irvine,and later Geoff Tomlinson have also played a big part,but the real driving force who has attracted top people to HGH is Jeff Greenslade.
At the original meetings when BSH was formed it was easy to see that these people had put their reputations on the line, and it was going to work.
At one AGM then Chairman said a banking licence was not far away.Contrary to Sharetraders views he was correct.
In fact HGH's record of doing what they say they will do remains intact to this day.

[iceman]

Thanks Percy. I was starting to wonder whether your absence on ST was maybe due to you having accidentally been holed up at PAZ's new factory during lockdown :-)

[Beau]

https://www.heartland.co.nz/about-us/history-of-heartland-bank Some history of when it started we have been with them since Loan and Building Society which is about 22 years.
Loan and Building Society amalgamated with Ashburton Permanent an then become Canterbury Buiding Society / Southern Cross, Marac and PGG Wrightson Finance / Heartland / Heartland Bank January 2011 / Heartland Group Holdings.

[percy]

Thanks Percy. I was starting to wonder whether your absence on ST was maybe due to you having accidentally been holed up at PAZ's new factory during lockdown :-)

Been flat out trying to keep up with NZ and Aussie results.

[sb9]

Yield hunters pouring in before it goes XD tmrw.

[Ohdoyle]

Yield hunters pouring in before it goes XD tmrw.

Yes some seem determined to pay for their dividend.

I'm not complaining.

[JohnnyTheHorse]

Yes some seem determined to pay for their dividend.

I'm not complaining.

Looks to me more like index balancing towards EOM.

[Beagle]

$2.35 !

12906

With that :)

[winner69]

That $2.50 we talked about beckons …sooner than we thought?

[Beagle]

That $2.50 we talked about beckons …sooner than we thought?

We might have to revise our price target to $3.00 :D

[nztx]

trading ex Div 31 Aug I believe ? :)

usually creates a bit of flurry of bods in the queue to get in before the whistle blows ..

[Beagle]

Yes, trades ex the 7 cent fully imputed final divvy tomorrow 31 August.

[winner69]

Heartland has never been so richly valued by the market on a Price to Book Value ratio

Finally being recognised as a great company

Maybe it is seen as a fintech

[davflaws]

Shame I have to show my ignorance to learn, but what is a P/B?

[winner69]

Shame I have to show my ignorance to learn, but what is a P/B?

No shame - my bad

P/B is Price to Book Value ratio - Share Price / Shareholder Equity per share. The Equity bit known as the company's Book Value

[RTM]

No shame - my bad

P/B is Price to Book Value ratio - Share Price / Shareholder Equity per share. The Equity bit known as the company's Book Value

Thanks...i wasn't sure either. So it might be that it has overshot a bit ? And dividend correction today as well.
Good way to compare them tho. Appreciate seeing the data.

[mike2020]

Thanks...i wasn't sure either. So it might be that it has overshot a bit ? And dividend correction today as well.
Good way to compare them tho. Appreciate seeing the data.
Would a correction ex div be a buy given the HMY result and the expectation of improving returns? Or more of a consolidation point? I am on the fence but it is not a sell.

[Ggcc]

Geoff has a unique set of experiences as a senior executive and prudential
regulator in Australia and internationally. He has held senior financial
services executive roles in NAB, was CEO of Suncorp's Life and Wealth
businesses in Australia and New Zealand, and most recently he was a board
member of the Australian Prudential Regulation Authority (APRA).
Internationally he served as an executive committee member on the insurance
global standard setting body, International Association of Insurance
Supervisors (IAIS), where he chaired the Audit and Risk Committee. Geoff is
recognised as a global leader on climate change financial risk through his
regulatory work at APRA, IAIS and the UN Environment Programme where he
chaired the Sustainable Insurance Forum.

HGH has flagged its strategy to grow its Australian business and is pleased
to boost its director capability with Geoff's commercial and regulatory
experience.

Are they flagging as in highlighting or giving up??

[maclir]

Geoff has a unique set of experiences as a senior executive and prudential
regulator in Australia and internationally. He has held senior financial
services executive roles in NAB, was CEO of Suncorp's Life and Wealth
businesses in Australia and New Zealand, and most recently he was a board
member of the Australian Prudential Regulation Authority (APRA).
Internationally he served as an executive committee member on the insurance
global standard setting body, International Association of Insurance
Supervisors (IAIS), where he chaired the Audit and Risk Committee. Geoff is
recognised as a global leader on climate change financial risk through his
regulatory work at APRA, IAIS and the UN Environment Programme where he
chaired the Sustainable Insurance Forum.

HGH has flagged its strategy to grow its Australian business and is pleased
to boost its director capability with Geoff's commercial and regulatory
experience.

Are they flagging as in highlighting or giving up??

Highlighting. But I don't see much fintech experience...

[Beagle]

Jarden recently updated their target price to $2.46 and reiterated their BUY rating.

This is consistent with this mutts view that HGH is headed to $2.50 in 2022.

[dabsman]

Jarden recently updated their target price to $2.46 and reiterated their BUY rating.

This is consistent with this mutts view that HGH is headed to $2.50 in 2022.

I think it will get there well before Christmas. Will be a race - HGH to $2.50 or Auckland out of Lockdown first? Even odds I'm thinking. Whats your call on what they do with Harmoney long term?

[Beagle]

I think it will get there well before Christmas. Will be a race - HGH to $2.50 or Auckland out of Lockdown first? Even odds I'm thinking. Whats your call on what they do with Harmoney long term? Time will tell.
For me its a great hold for yield and steady growth in earnings and dividend's over the years ahead so I have no interest whatsoever in selling. The metrics are undemanding and financials' generally do well in a rising interest rate environment.

[Waltzing]

this stock always back fills gains after moving up since april 2020, probably do the same again. Stunning chart.

[sb9]

Recovered most of divvy amount.

[winner69]

DRP price $2.27125669

Wasn’t it really $2.271256698734

Jeff, if you going to be exact do it properly

[percy]

DRP price $2.27125669

Wasn’t it really $2.271256698734

Jeff, if you going to be exact do it properly

I thought the share registry set the price.?

[winner69]

I thought the share registry set the price.?


Probably do but with Jeff’s instructions ;)

[Beagle]

DRP price $2.27125669

Wasn’t it really $2.271256698734

Jeff, if you going to be exact do it properly

:lol: :lol:

[winner69]

Real investors (not boring guru brokers) are saying that banks that do a good job in prioritizing high-demand products and services and profitable customer segments will see the market rerating them in the next few years

Heartland fit the bill

[Bjauck]

DRP price $2.27125669

Wasn’t it really $2.271256698734

Jeff, if you going to be exact do it properly A bonus 0.000008734 of a cent per share for those in the DRIP. Does that equate to one cappuccino for the total dividend payment? I would regret opting out were it not for the SP closing at $2.24 on Friday!!

[Beagle]

A bonus 0.000008734 of a cent per share for those in the DRIP. Does that equate to one cappuccino for the total dividend payment? I would regret opting out were it not for the SP closing at $2.24 on Friday!!

At $2.28 a few minutes ago I'm feeling really good about all shares previously accumulated through the DRIP I'm fully subscribed too especially the ones issued at ~ $1.25 this time last year :D

[winner69]

At $2.28 a few minutes ago I'm feeling really good about all shares previously accumulated through the DRIP I'm fully subscribed too especially the ones issued at ~ $1.25 this time last year :D

Lockdown boredom?

Update your infamous peer comparisons could be a brain refresher

[Beagle]

Lockdown boredom?

Update your infamous peer comparisons could be a brain refresher

Good idea....something to do after lunch and then you can come back with your usual comparison with NTA premiums. I can't recall ever being this bored in my life before for such a long period of time and I have never been so happy to have such a large home for plenty of social distancing from Mrs Beagle. This says it all lol https://www.youtube.com/watch?v=7d1_mBBmOZg
33 cases today...Covid prison sentence for at least another 2 weeks in Auckland...you read it here first and there's no need to listen into Saint Cindy's endless ramblings from her throne this afternoon.

[Bjauck]

Good idea....something to do after lunch and then you can come back with your usual comparison with NTA premiums. I can't recall ever being this bored in my life before for such a long period of time and I have never been so happy to have such a large home for plenty of social distancing from Mrs Beagle. This says it all lol https://www.youtube.com/watch?v=7d1_mBBmOZg
33 cases today...Covid prison sentence for at least another 2 weeks in Auckland...you read it here first and there's no need to listen into Saint Cindy's endless ramblings from her throne this afternoon.
My heart sank when I listened to the numbers. Cabin fever is starting to set in but at least I heard my first shining cuckoo* of the season, so Summer is coming! Or maybe I have gone cuckoo!

However I may regret not to have participated in the DRIP, although it is still one of my top 3 (out of 15 holdings.)

*pīpīwharauroa

[winner69]

Beagle - here's the price to NTA numbers of HGH and its peers

All the banks have been 're-rated' upwards since January

Ignoring CBA as they are so special Heartland has the highest Price to NTA of all their peers - by quite a margin as well

Being a fintech helps eh

Ticker Jan 21 Aug 21
CBA 2.31 2.51
HGH 1.73 1.95
NAB 1.40 1.61
WBC 1.35 1.54
ANZ 1.21 1.34
BOQ 1.12 1.21
BEN 1.22 0.98

[Beagle]

My heart sank when I listened to the numbers. Cabin fever is starting to set in but at least I heard my first shining cuckoo* of the season, so Summer is coming! Or maybe I have gone cuckoo!

However I may regret not to have participated in the DRIP, although it is still one of my top 3 (out of 15 holdings.)

*pīpīwharauroa

"Thanks" for that, as if we don't have enough challenges to deal with in Auckland...you reminded me that this week we get to enjoy even more extensive amounts of Te Reo being forcefully rammed down out throats. I'm so "thrilled" :rolleyes:

Winner mate...I was going to do a PE comparison but I've slid even further into a malaise of discontent. I can't be bothered.

[RGR367]

What a nice sight/amount :t_up: Divvie money on the bank!!!

[sb9]

What a nice sight/amount :t_up: Divvie money on the bank!!!

+1 to that :D

[Bjauck]

At $2.28 a few minutes ago I'm feeling really good about all shares previously accumulated through the DRIP I'm fully subscribed too especially the ones issued at ~ $1.25 this time last year :D
$2.32 today. Each time I don’t subscribe to the Drip it bounces up afterwards!

[Beagle]

$2.32 today. Each time I don’t subscribe to the Drip it bounces up afterwards!

Closed the day on market at $2.35 probably boosted a bit by the very strong GDP number that came out today confirming the economy was running very strong. https://www.nzherald.co.nz/business/new-gdp-figure-confirms-economy-was-booming/YBSL3OUYRV2F6E4W5PW3EQAR5E/

Jarden have a target price of $2.46 which seems about right to me although it wouldn't surprise me to see this up around $2.70 in due course.

[peat]

about to have another go at breaking through that resistance.
3rd time lucky! ?

[Beagle]

Financials generally do very well in a rising interest rate environment and that's certainly what's coming.

[daveypnz]

Big trades @ $2.37 after the close

[Soolaimon]

Big trades @ $2.37 after the close

I am happy for that. Put an order in earlier today @ 2.33 and thought I had missed out but, there you go, just got a bought notice. After the close as well. Don't know how that works.
Disc. very long term holder.

[RTM]

Big trades @ $2.37 after the close

Is that an all time high ?
Disc : More than 8.5% of portfolio. (Loving it )

[Beagle]

Is that an all time high ?
Disc : More than 8.5% of portfolio. (Loving it )

Equals the very recent all time high it traded at cum the 7 cent divvy. Now trades ex divvy, (so "sort of" another new all time high in adjusted terms, $2.44). Like you mate, I'm a very happy holder. Outperformance of this one has lead to it being 11% of my portfolio and makes me 12976

Very well fed and contented.

[winner69]

Jeff always says Heartland’s fortunes are dependent on general economic activity and employment numbers

Record high GDP and pretty low unemployment at the moment …good for Heartland

Thanks Grant Robertson for a masterful display in guiding NZ economy through the covid crisis

[percy]

Jeff always says Heartland’s fortunes are dependent on general economic activity and employment numbers

Record high GDP and pretty low unemployment at the moment …good for Heartland

Thanks Grant Robertson for a masterful display in guiding NZ economy through the covid crisis
Agree.
HGH in good shape,
NZ in good shape.
"We don't know how lucky we are."

ps.A few years ago I paid about $230 for a shingles jab.Then about 3 years ago I had the Govt free one.
Just wonder the cost of these Covid jabs.?....$300 or $400 per jab.?
If I had to pay I would have.

[Doug]

https://www.stuff.co.nz/national/politics/125179503/budget-2021-covid19-vaccine-programme-revealed-to-cost-14-billion

"On those numbers, the cost of the entire vaccine roll-out will be about $273 per New Zealander, on latest Stats NZ population estimates."

[percy]

https://www.stuff.co.nz/national/politics/125179503/budget-2021-covid19-vaccine-programme-revealed-to-cost-14-billion

"On those numbers, the cost of the entire vaccine roll-out will be about $273 per New Zealander, on latest Stats NZ population estimates."

Thank you for your post.
Less per person than I expected.

[Teatree]

And if the vaccine costs say 20 a pop then there is an awful lot of overhead

[Bjauck]

And if the vaccine costs say 20 a pop then there is an awful lot of overhead There would be storage, distribution & medical personnel costs for a start.

[Snoopy]

And if the vaccine costs say 20 a pop then there is an awful lot of overhead

I have cross posted this discussion to the Coronavirus thread where it belongs.

SNOOPY

[winner69]

NZ banks made zillions in June quarter

Here’s KPMG report - see how the minnow Heartland performs relative to others

Is only Heartland Bank in NZ …not Heartland Group

https://assets.kpmg/content/dam/kpmg/nz/pdf/2021/09/fips-june-2021-quarterly.pdf

[Snoopy]

NZ banks made zillions in June quarter

Here’s KPMG report - see how the minnow Heartland performs relative to others

Is only Heartland Bank in NZ …not Heartland Group

https://assets.kpmg/content/dam/kpmg/nz/pdf/2021/09/fips-june-2021-quarterly.pdf


1/ Increase in interest margin of 30 basis points over the year (Table 1) exceeds all (except SBS, but we all know they are really a building society so not really deserving of the bank monicker).
2/ Increase in gross loans over the June quarter up 3.11%, right at the top (Table 2). But on an annual 12 month rolling period basis loan growth is near the bottom of the pack. Maybe Heartland more affected by competition from government loans than the others?
3/ Impaired asset expense down 94 basis points for the year = way ahead of the competition. But on a June quarter basis Heartland the only bank to show impaired asset expenses increasing? (Table 4)

Good to see Heartland in that elite top nine list of 'Major Banks'. But when you look at the ensuing graphs Heartland drop out of the major bank picture. So is there some doubt that Heartland is really a 'major bank'? We better keep it quiet that Heartland have outsourced the banking side of their business to Westpac. Still KPMG believes they are a bank so that is all that matters. Long may the marketing con continue. Geoff, still the man!

SNOOPY

[iceman]

NZ banks made zillions in June quarter

Here’s KPMG report - see how the minnow Heartland performs relative to others

Is only Heartland Bank in NZ …not Heartland Group

https://assets.kpmg/content/dam/kpmg/nz/pdf/2021/09/fips-june-2021-quarterly.pdf

Thanks for sharing winner69. Very interesting reading.

[winner69]

Heartland's Annual Report over 140 pages this year .... pretty thick

Beagle - you going to the Hui ā-tau - lockdown be over by then

[winner69]

The boy on the cover of the AR looks rather sad .... probably a hidden meaning which I don't get (from photography angle a good photo though)

[pierre]

The boy on the cover of the AR looks rather sad .... probably a hidden meaning which I don't get (from photography angle a good photo though)

No, Winner. The lad is very focused - just like Jeff is on producing increased profits and dividends every year. That's the hidden meaning. :)

[Bad_jelly]

No, Winner. The lad is very focused - just like Jeff is on producing increased profits and dividends every year. That's the hidden meaning. :)
+1 Completely agree

[invest]

NZ banks made zillions in June quarter

Here’s KPMG report - see how the minnow Heartland performs relative to others

Is only Heartland Bank in NZ …not Heartland Group

https://assets.kpmg/content/dam/kpmg/nz/pdf/2021/09/fips-june-2021-quarterly.pdf

Hidden on page 13, one obscure table showing how HGH is heads and shoulders above the others.
12999

[SCOTTY]

The lad is obviously a thinker. Contemplating the Chairman’s address - expecting npat for 2022 year increasing from $87m to $93/96m. What will that do to the share price and future dividends :)

[winner69]

Hidden on page 13, one obscure table showing how HGH is heads and shoulders above the others.
12999

The benefit of being a bank in disguise …..finance company margins v real banks concentrating on home mortgages

And being a deposit taker gives you zillions of very cheap cash

[percy]

The benefit of being a bank in disguise …..finance company margins v real banks concentrating on home mortgages

And being a deposit taker gives you zillions of very cheap cash

Yes a very successful business model.

[RTM]

The benefit of being a bank in disguise …..finance company margins v real banks concentrating on home mortgages

And being a deposit taker gives you zillions of very cheap cash

There are no free lunches - right ? So this reflects more risk I guess. And if there is a meltdown, then those chickens may come home to roost. Or at least some of them. Will it be sustainable going forward ?
For now....good news for holders.
Disc: Holder, biggest % of portfolio.

For now

[iceman]

Yes a very successful business model.

Many things to like in the AR. Huge growth in NZ reverse mortgages but growth in Australian reverse mortgages a bit disappointing. NIM and return on equity remain at elevated levels as before. Outlook very encouraging.
A great result from a great business.

[peat]

NIM and return on equity remain at elevated levels as before.

Tho predicted to contract (with commensurate reduction in risk)

[Beagle]

Heartland's Annual Report over 140 pages this year .... pretty thick

Beagle - you going to the Hui ā-tau - lockdown be over by then

It would be nice to think we'll be able to attend in person and partake of some kai (food) together but I suspect that Covid will have a long teyel. (tail)
Certain ethnicities mainly in South Auckland are not doing enough hard mahi (work) and sticking to their mirumiru's. (bubbles).

Apparently if you listen to all the politically correct do-gooders, saying the same thing twice in different languages is very much on trend.

[nztx]

It would be nice to think we'll be able to attend in person and partake of some kai (food) together but I suspect that Covid will have a long teyel. (tail)
Certain ethnicities mainly in South Auckland are not doing enough hard mahi (work) and sticking to their mirumiru's. (bubbles).

Apparently if you listen to all the politically correct do-gooders, saying the same thing twice in different languages is very much on trend.


Thanks for explaining things .. here's me thinking a different set of bi-lingual glasses needed, not the usual ones
for seeing digits from a distance on the horizon :)

Is there a shorter abbreviated version which excludes all the duplicated blurb somewhere ? ;)

[Beagle]

Thanks for explaining things .. here's me thinking a different set of bi-lingual glasses needed, not the usual ones
for seeing digits from a distance on the horizon :)

Is there a shorter abbreviated version which excludes all the duplicated blurb somewhere ? ;)

Thankfully there is mate. Analyst presentation here. Everything that's really relevant in only 34 pages :t_up: Cuts out the almost endless ESG nonsense too.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/377825/352948.pdf

[Waltzing]

"bubbles"

got an order in with a local german to find some older style champagne crystal glasses with etchings. She said she might have to look outside ANZ. Better not call it the HK as thats probably enough hysteria for the week and its only monday.

I dont think either WHS or Bris will have these rare items in stock or would be shocked if they did.

[Beagle]

Getting ready to toast $5 real soon ?

[Waltzing]

Wrong thread of course, but if MR B thinks WHS 5 dollars on the horizon soon we would have to ship a crate to his castle :eek2:.

[percy]

Thankfully there is mate. Analyst presentation here. Everything that's really relevant in only 34 pages :t_up: Cuts out the almost endless ESG nonsense too.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/377825/352948.pdf

Looking forward
• Higher growth in Reverse Mortgages,
Home Loans and transition of
Harmoney to on
-balance sheet model
will result in NIM contracting
.
• However, this will drive an offsetting
benefit of reduced impairment
expenses, reflecting improved lending
portfolio quality
.
• Continuing to extend best or only
product reach through digital
platforms, providing frictionless
service at each stage to provide better
customer experience.
• CTI ratio trend downwards expected
to continue, as a result of ongoing
digitalisation and automation.
Noting uncertainties associated with the
ongoing impacts of COVID
-19,
Heartland expects NPAT for FY2022 to
be in the range of $93m to $96.

[percy]

\
Page 12.SHAREHOLDER RETURNS
• Return on equity (ROE) of 11.9%
(up144 bps vs FY2020).
• Earnings per share (EPS) of 14.9 cps,
up 2.4 cps compared to FY2020.
• Final dividend of 7.0 cps, up 4.5 cps on
FY2020 as pay-out ratio returns to
historical levels with easing of RBNZ
restrictions.
• Dividend yield of 7.1%.1
• Five year total shareholder return (TSR)
of 107.2%, compared with the NZX50
Index TSR of 81.9% in the same
period.

[Beagle]

Excellent summary, thanks Percy.

[Mista_Trix]

It would be nice to think we'll be able to attend in person and partake of some kai (food) together but I suspect that Covid will have a long teyel. (tail)
Certain ethnicities mainly in South Auckland are not doing enough hard mahi (work) and sticking to their mirumiru's. (bubbles).

Apparently if you listen to all the politically correct do-gooders, saying the same thing twice in different languages is very much on trend.

Your comments are undermining the amount of mana you carry on these threads, and how much mahi you've put in to get it there...

[Beagle]

The Beagle has never been known to be a politically correct animal :cool:

[Mista_Trix]

The Beagle has never been known to be a politically correct animal :cool:

You'll find what you call 'politically correct', many would just call casual 'racism'.

I'd really appreciate if you gave this a watch;
https://youtu.be/g9n_UPyVR5s

[Greekwatchdog]

What a load of crap. Always the same in this country. One side can say what they like yet the other is called a racist. Its called segregation by stealth. Happy to hold HGH regardless that they use 2 languages, 1 more helpful than the other.

[Joshuatree]

You'll find what you call 'politically correct', many would just call casual 'racism'.

I'd really appreciate if you gave this a watch;
https://youtu.be/g9n_UPyVR5s


Thanks for that vid.So true all this casual racism.Funny isnt it ,dogs are not judgemental,they are unconditional.

[dobby41]

You'll find what you call 'politically correct', many would just call casual 'racism'.

I'd really appreciate if you gave this a watch;
https://youtu.be/g9n_UPyVR5s

Fabulous - very well done

[Beagle]

Edited...let's get back to discussing Heartland.

Good thread here for discussing the things those above appear to want to do. https://www.sharetrader.co.nz/showthread.php?12158-Is-New-Zealand-becoming-more-racially-divided

[Jantar]

Deleted for being childish

[Bjauck]

Thankfully there is mate. Analyst presentation here. Everything that's really relevant in only 34 pages :t_up: Cuts out the almost endless ESG nonsense too.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/377825/352948.pdf

I like all the easy to digest pretty graphs and charts.

I think Hikunga is the Te Reo word you may have been looking for for "Tail"

Thanks too to Percy for the bullet list of key points.

[Playa]

It would be nice to think we'll be able to attend in person and partake of some kai (food) together but I suspect that Covid will have a long teyel. (tail)
Certain ethnicities mainly in South Auckland are not doing enough hard mahi (work) and sticking to their mirumiru's. (bubbles).

Apparently if you listen to all the politically correct do-gooders, saying the same thing twice in different languages is very much on trend.
45 new cases today.

[Bjauck]

Edited - Off topic

[Beat the Bank]

45 new cases today. A wall (pakitara) built around South Auckland, and let them have there own bubble somehow looks the answer
Playa - take your b****** to an off market discussion thread so those of us supporting this great business don't have to put up with this off topic nonsense. And please watch the video link from previous posters. It is so well done.

[Count von Count]

45 new cases today.

And before we get into more South Auckland bashing, it makes sense to look at the spread of COVID in the three major affected Australasian cities:
Melbourne - first recently detected in St Kilda first, moved quickly to the poor areas in the North and Northwest of the city
Sydney - first detected in the Eastern Suburbs, moved quickly to Liverpool, Canterbury, and Mr Druitt in the South West
Auckland - first detected in Devonport, moved to Grey Lynn, then quickly into South Auckland.

There are a few confounding factors here. Firstly, those in the lower paid service and labouring industries tend to take the virus from a wealthy suburb (where they work) to one less wealthy (where they live). Secondly, it spreads best in damp houses with overcrowding.

I don't know where you guys all live, but I suspect a lockdown is a lot harder in Mangere or Otahuhu than it is in Parnell or the Eastern Suburbs.

I think we need to encourage and support, not vilify, South Auckland here. Or to put it another way - this outbreak is taking longer to settle because of inequality.

[Greekwatchdog]

That has a lot to do with HGH. Really go start a Covid Thread.

[Old mate]

Good to see some upwards action today:t_up:

[waikare]

Good to see some upwards action today:t_up:

Are you talking HGH share price or covid 19 figures?

[Beagle]

Good to see some upwards action today:t_up:

Yes I thought today's share price increase was surprisingly good considering the lead-in we got from the overseas markets.

[Old mate]

Are you talking HGH share price or covid 19 figures?

See thread title

[Beagle]

Quick update on comparison group FY22 metrics and expected average growth rate looking ahead and some comments.

NAB 15.0 3% average expected growth rate
WBC 15.8 (I need to look into the growth rate some more with this one)
ANZ 12.9 5% average expected growth
CBA 18.2 3% average expected growth (This one is consistently the most expensive on forward metrics)
BOQ 15.0 3.5% average expected growth
BEN 12.9 -3% average expected earnings contraction, (sizeable discount to NTA, price to book, could be a few issues with this one)
HGH 14.4 6% average expected earnings growth.

On those metrics ANZ and HGH look like the best value to me and I am happy to hold HGH for the fully imputed dividends that none of the other banks provide, (only very partial imputation credits, at best, with Australian banks)

Comment - I think HGH will need to use its Covid provision this year, Auckland business's are doing it very tough.

Rating Hold. Disc Holding a decent sized stake but have reduced it somewhat.

Work in progress...I need to look into WBC's future growth rate some more.

[Waltzing]

ANZ is has been a BUY for while now but CBA is the darling of the group.

Best to buy on the AUS market to take advantage of there AUS carbon climate position.

NZ banks will soon become subject to the hold excess capital requirements of the terrified RBNZ.

[SCOTTY]

Time will tell.
For me its a great hold for yield and steady growth in earnings and dividend's over the years ahead so I have no interest whatsoever in selling. The metrics are undemanding and financials' generally do well in a rising interest rate environment.

So when did you change your mind and start selling?

[Beagle]

A few days ago I reassessed the risk and reward of the market in general and rebalanced my portfolio with a much higher cash allocation. Still hold a good sized position in HGH. Its gradually got more and more clear as the weeks have dragged on that many Auckland business's are not going to survive this lockdown and there's less and less chance of any write-back of HGH's earlier Covid loan provisioning. If anything, I am wondering if its enough ?

What many who don't live in the Auckland region don't realise is that by the end of this week, in 2021 the Auckland region will have been locked down more weeks than not ! (21 weeks locked down, 20 weeks not). That brutal reality is really confronting as is the reality such an appalling situation is a real business killer ! What's even worse is that in the last week its become clear there is no early way out of this prison sentence as the numbers in the last few days have headed northwards. No way for others to truly understand how incredibly tough the situation is in the Auckland region without living it.

I read last week that over 13,000 business's shut their doors permanently in September, (just in that one month). Sorry don't have a link.

[iceman]

A few days ago I reassessed the risk and reward of the market in general and rebalanced my portfolio with a much higher cash allocation. Still hold a good sized position in HGH. Its gradually got more and more clear as the weeks have dragged on that many Auckland business's are not going to survive this lockdown and there's less and less chance of any write-back of HGH's earlier Covid loan provisioning. If anything, I am wondering if its enough ?

What many who don't live in the Auckland region don't realise is that by the end of this week, in 2021 the Auckland region will have been locked down more weeks than not ! (21 weeks locked down, 20 weeks not). That brutal reality is really confronting as is the reality such an appalling situation is a real business killer ! What's even worse is that in the last week its become clear there is no early way out of this prison sentence as the numbers in the last few days have headed northwards. No way for others to truly understand how incredibly tough the situation is in the Auckland region without living it.

I read last week that over 13,000 business's shut their doors permanently in September, (just in that one month). Sorry don't have a link.

Beagle are your numbers, 21 weeks and 20 weeks correct for Auckland ?

[Beagle]

Beagle are your numbers, 21 weeks and 20 weeks correct for Auckland ?

Opps sorry, it just feels that way. I've almost forgotten what its like to enjoy normal freedoms. I misinterpreted this article that said we'd had 20 weeks so far with no end in sight.
https://www.nzherald.co.nz/business/covid-delta-outbreak-roger-partridge-an-end-to-new-zealand-exceptionalism/53JJNYA2PGNPR7PRXPJ2FZMWTY/
20 weeks includes the weeks we had last year. My point about the effect on Auckland business's stands. The Auckland region has been the sacrificial lamb with its abundance of MIQ facilities for the rest of the country. Impossible to overstate what an exhausting thing one lockdown after another after another after another after another with no end in sight for this one is like. Its just drains your batteries day after day after day after...

I've always encouraged my clients to have money set aside for a rainy day but nobody ever expected it to keep raining like this. Those without extensive back-up resources will fail and the numbers who have done exactly that are already confronting and probably just the tip of the iceberg as most will be trying to cling on by their fingernails to any glimmer of hope they can see. Will HGH's existing Covid overlay provisioning be enough to cover expected losses in the Auckland region ? That's anyone's guess, I have no way of getting a read on that.
Maybe its good for HGH and will generate heaps more loan demand as they support Auckland business's through this like HGH supported dairy farmers though the dairy crisis ? On balance it can't be a good thing lending more money to troubled business's unless the underlying security value of the assets put up for security is rock solid.

[iceman]

Opps sorry, it just feels that way. I misinterpreted this article that said we'd had 20 weeks so far with no end in sight.
https://www.nzherald.co.nz/business/covid-delta-outbreak-roger-partridge-an-end-to-new-zealand-exceptionalism/53JJNYA2PGNPR7PRXPJ2FZMWTY/
20 weeks includes the weeks we had last year. My point about the effect on Auckland business's stands.

Thought so. Agree it is really bad for Auckland. Many Auckland businesses, business owners and residents in general must be going through hell with no end in sight !

[Beagle]

You're not wrong. You either have extensive reserves to weather this seemingly endless s***-storm or you don't. Thankfully I do but vast numbers don't.

Fortunately you can now catch up with a mate for a drink or two and a good chat so that's definitely a meaningful improvement on how it was just recently and helps to keep sane.

[SCOTTY]

Thought so. Agree it is really bad for Auckland. Many Auckland businesses, business owners and residents in general must be going through hell with no end in sight !

With vaccination rates up, abolishment of elimination, the prospect of no further lockdowns - maybe the worst is almost over. :)

[Cricketfan]

With vaccination rates up, abolishment of elimination, the prospect of no further lockdowns - maybe the worst is almost over. :)

Until the next variant...

[Ggcc]

Opps sorry, it just feels that way. I've almost forgotten what its like to enjoy normal freedoms. I misinterpreted this article that said we'd had 20 weeks so far with no end in sight.
https://www.nzherald.co.nz/business/covid-delta-outbreak-roger-partridge-an-end-to-new-zealand-exceptionalism/53JJNYA2PGNPR7PRXPJ2FZMWTY/
20 weeks includes the weeks we had last year. My point about the effect on Auckland business's stands. The Auckland region has been the sacrificial lamb with its abundance of MIQ facilities for the rest of the country. Impossible to overstate what an exhausting thing one lockdown after another after another after another after another with no end in sight for this one is like. Its just drains your batteries day after day after day after...

I've always encouraged my clients to have money set aside for a rainy day but nobody ever expected it to keep raining like this. Those without extensive back-up resources will fail and the numbers who have done exactly that are already confronting and probably just the tip of the iceberg as most will be trying to cling on by their fingernails to any glimmer of hope they can see. Will HGH's existing Covid overlay provisioning be enough to cover expected losses in the Auckland region ? That's anyone's guess, I have no way of getting a read on that.
Maybe its good for HGH and will generate heaps more loan demand as they support Auckland business's through this like HGH supported dairy farmers though the dairy crisis ? On balance it can't be a good thing lending more money to troubled business's unless the underlying security value of the assets put up for security is rock solid.
I do feel for businesses in general and landlords. Everyone has bills that need paying and mortgage holidays still mean the mortgage needs to get paid back. However businesses that closed down so quickly, were they ever actually viable? I find some businesses survive off the smell of an oily rag.

In saying that and I hope I sound kind with this little bit…… I have owned very successful businesses and had enough capital that I could survive for over 6 months without any injections. I always feel people draw too much money out of their business to maintain their lifestyle. If anything, businesses never learn to budget properly and I hope this is the catalyst required to make businesses owners wake up. Hopefully I am right.

[Beagle]

I do feel for businesses in general and landlords. Everyone has bills that need paying and mortgage holidays still mean the mortgage needs to get paid back. However businesses that closed down so quickly, were they ever actually viable? I find some businesses survive off the smell of an oily rag.

In saying that and I hope I sound kind with this little bit…… I have owned very successful businesses and had enough capital that I could survive for over 6 months without any injections. I always feel people draw too much money out of their business to maintain their lifestyle. If anything, businesses never learn to budget properly and I hope this is the catalyst required to make businesses owners wake up. Hopefully I am right.

You're a prudent person as I would be bold enough to suggest are most of us on here who are trying to build a decent level of financial security into their lives. Unfortunately what you say is right and the majority of people regardless of whether they're in business or not live very close too or right up to the limit of their income and then some others live beyond their income and their homes become like an ATM machine and rising prices an opportunity to make another withdrawal. In my 40 years experience as an accountant I have observed that very few people live well below their level of income.

I think for so many business's to close permanently in September this tells you they were already very badly weakened from the previous 4 lockdowns in the Auckland region and simply couldn't go on. I fear for the mental health of these people. The ones I feel sorry for the most are those that invested their life savings into opening a new hospitality business in recent times, often investing hundreds of thousands with fitout, fixtures and fittings and a new commercial kitchen. They've put everything they had on the line and have had no real opportunity to build any reserves. Very sad times for them. The hospitality industry in Auckland will be gutted out by the time this is over.

[Ggcc]

You're a prudent person as I would be bold enough to suggest are most of us on here who are trying to build a decent level of financial security into their lives. Unfortunately what you say is right and the majority of people regardless of whether they're in business or not live very close too or right up to the limit of their income and then some others live beyond their income and their homes become like an ATM machine and rising prices an opportunity to make another withdrawal. In my 40 years experience as an accountant I have observed that very few people live well below their level of income.

I think for so many business's to close permanently in September this tells you they were already very badly weakened from the previous 4 lockdowns in the Auckland region and simply couldn't go on. I fear for the mental health of these people. The ones I feel sorry for the most are those that invested their life savings into opening a new hospitality business in recent times, often investing hundreds of thousands with fitout, fixtures and fittings and a new commercial kitchen. They've put everything they had on the line and have had no real opportunity to build any reserves. Very sad times for them. The hospitality industry in Auckland will be gutted out by the time this is over.
I agree with what you are saying. Mental health is so important. People need to really understand hospitality businesses and make sure they realise they own you rather than you owning it.

[Beagle]

I agree with what you are saying. Mental health is so important. People need to really understand hospitality businesses and make sure they realise they own you rather than you owning it.

Yeah I've seen that with my nephew who is owned by his two restaurants.

[daveypnz]

Big parcel @ $2.35 been taken out

[winner69]

From all accounts it’s getting harder and harder for businesses getting credit from the big banks. ANZ Business Outlook survey results say This month the worst/hardest/most difficult month ever
P

Hope Heartland and their touted ease of business lending is creaming it ….a bank that provides the needs of businesses easily

[dabsman]

Once CCCFA is fully implimented good luck anyone getting money off the banks!

[Rawz]

Once CCCFA is fully implimented good luck anyone getting money off the banks!

CCCFA is already here. Just getting tighter.

I do fair the new regulations will limit credit to some people.

But my biggest fair is SME's are next on the hit list.

[Beagle]

No place for fear in this market. Letting go of a few HGH the other day at $2.35 has already cost me money :blush:
Got to keep my paws off the sell button.

[Rawz]

Oh dear. Fair point

[TSpinoza]

Interesting to see Simply Wall Street https://simplywall.st/stocks/nz/banks/nzx-hgh/heartland-group-holdings-shares?blueprint=1722887&utm_medium=finance_user&utm_campaign=cta&utm_source=yahoo posting that at 2.35 HGH is undevalued by 13% = fair value guestimate of 2.70.

[Rawz]

Was having a peruse on market screener yesterday of the aussie bank price to book ratios. Then had a look at HGH and it was a bit higher, 25bp-30bp higher. (Aside from CBA which was 100bp more than the rest.)

HGH a bit pricey?

[winner69]

Was having a peruse on market screener yesterday of the aussie bank price to book ratios. Then had a look at HGH and it was a bit higher, 25bp-30bp higher. (Aside from CBA which was 100bp more than the rest.)

HGH a bit pricey?

Should be higher multiples as Heartland is a fintech ….. and not really a ‘bank’

[Rawz]

Should be higher multiples as Heartland is a fintech ….. and not really a ‘bank’

LOL.. The only thing fintechy about HGH is their shareholding in HMY

[winner69]

LOL.. The only thing fintechy about HGH is their shareholding in HMY

Keep those thoughts to yourself …..Heartland call themselves a fintech so they are a fintech

[dabsman]

Waiting for your dairy price correlation comment W69?

[Beagle]

Was having a peruse on market screener yesterday of the aussie bank price to book ratios. Then had a look at HGH and it was a bit higher, 25bp-30bp higher. (Aside from CBA which was 100bp more than the rest.)

HGH a bit pricey?

Cheap on an earnings basis, especially relative to average expectations of earnings growth in the next few years compared to their peers, see post #14,970 but as noted in subsequent posts they will take a hit from losses with Auckland business's.
Probably very close to fair value all things considered at present.

https://www.nzherald.co.nz/business/harmoney-secures-a105m-funding-line-targets-nz-securitisation-in-2022/3WI4WPLBATTMXVOUQBEGAGAANI/
Heaps more funding for Harmoney. Lending more than $100m more on an unsecured basis during a Covid crisis...what could possibly go wrong lol

[winner69]

Waiting for your dairy price correlation comment W69?

Hgh shareprice followed the WMP price up in August and September. WMP prices been pretty flat lately as has the HGH shareprice.

Good news is that WMP price went up last auction ….Hgh shareprice likely to follow …. 240/250 here we come.

[KJMLimited]

Well they just sold $100m of loans taken out in a covid crisis to someone else. Now they can relend that $100m into a market emerging from a covid crisis. With libra those new loans are far cheaper to process and offer less risk of default. Sounds like good business to me.

[Rawz]

The banks buying into HMYs securitization program is really them waving the white flag and realizing it’s better and easier to get further consumer lending exposure via HMY than going to the market with their clunky 5 day turnaround manual process.

Much the same reason why HGH securitization program is so popular (and the countries largest). Banks can buy in and get asset finance exposure without investing big into a proper asset finance division

[KJMLimited]

The banks buying into HMYs securitization program is really them waving the white flag and realizing it’s better and easier to get further consumer lending exposure via HMY than going to the market with their clunky 5 day turnaround manual process.

Much the same reason why HGH securitization program is so popular (and the countries largest). Banks can buy in and get asset finance exposure without investing big into a proper asset finance division I agree 100%.