I could say the same question and ask you what is a competitive advantage of ANZ as opposed to WBC, CBA and NAB?
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ANZ gives you the biggest New Zealand exposure in the Australasian market of the big four Ozzie banks, and as part of that has a large rural lending portfolio in this country. With the Ozzie mining boom subsiding, that does give ANZ an advantage going forwards IMO.
SNOOPY
Fair points. My favourite out of the big 4 is ANZ also for the Asian Growth strategy. I don't own any however.
Main concern I have with HNZ is how well they would do in a down economy. Since they rely heavily on rural lending and also car/smaller loans when a downturn happens people still need somewhere to live and will still buy groceries so need a traditional bank such as ANZ, but I'm not convinced HNZ will hold up well when the dairy pay-out is low and no one wants to upgrade their car on finance.
Actually I believe ANZ New Zealand stacks up very well as a measuring stick for HNZ. See my post 22 on the ANZ.NZX thread for the full explanation..
Couldn't find a full balance sheet, or income statement or much disclosure at all for UDC. Of course ANZ New Zealand fully owns UDC. I do agree that UDC on its own would probably provide a better comparison with HNZ. But having poked around the UDC site this is the best I can come up with.Quote:
Was there a reason you didn't use UDC? Opaqueness of data being the one that springs to mind but it is there, e.g. companies office, prospectuses, etc.
https://www.udc.co.nz/comm/about_us/...type=borrowing
If you can point me in the direction of some more disclosure by UDC, I will happily analyse it.
SNOOPY
So more reliable, but as a consequence less profitable than a company like Dorchester on an operating basis.
Not as specialized as Turners Auctions Finance or DorchesterQuote:
2. A specialist lender able to assess risk better and therefore provide better loan rates
Dorchester and Turners Auctions Finance are there as is UDC under the cloak of the ANZ Bank.Quote:
3. Competition in the form of opaque finance companies has evaporated
You may have something there. Care to be more specific?Quote:
4. Owners and much the senior management are directly associated with the business types they lend too.
Wait till Percy goes to bed before mentioning the 'R I' words Belg. He will go bezerk if he reads that!Quote:
5. Supportive shareholders who will be quite happy to support rights issues to let the company grow
You are referring to PGG Wrightson, who have just quit their Heartland stake and are now looking around for other finance partners?Quote:
6. Good cross-selling partnerships with other NZ entities
Still looking for that killer competitive advantage Belg. Appreciate your attempt here though. It has given me and possibly others a little more to think about.
SNOOPY
You may enjoy an article in www.theage.com.au/business headed "Good times end for bank profits."
The Australian Banks are very secure.
Heartland is a very small player when compared to them,yet they enjoy being well funded,have highest equity ratio,are very liquid,do not have exposure to mining,and reducing exposure to NZ residential property.
With the NZ economy expected to boom this year .. A wise move indeed .. As the RB is expected to raise interest rates quicker than previously thought.
This is when many chickens will come home to roost IMHO..
" Only a thousand dollars down ".. " you may have to put in a little ".. Yeah Right..