Maybe ... but just check out how the big banks took off today: ANZ up 4.5%, the others around 3% similar to HBL . Sure this is just the milk?
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You are forgiven W69
This is why I like the drip and want the share price to stay low ��:
5/4/16. $1.198 (3.5 CPS)
29/9/15. $1.11 (4.5CPS)
27/3/15. $1.32 (3.0 CPS)
29/9/14. $1.015 (3.5 CPS)
20/3/14. $0.8606 (2.5 CPS)
1/10/13. $0.826 (2.5 CPS)
The magic of compounding ��������
Westpac nz worried about stressed rural loans. Aren't we lucky that heartland have avoided such impending turmoil by their prudent approach
From sharechat.co.nz
Westpac’s New Zealand business has seen an increase in “stressed” loans amid a weakening of the country’s agricultural sector, which is highly exposed to the global crash in dairy prices.
Westpac said today its New Zealand arm, which accounts for 11 per cent of the bank’s total cash earnings, saw an increase in stressed lending in its agricultural loan portfolio over the three months through December, rising to 4.2 per cent of lending, up from 3.9 per cent in the September quarter.
Although the percentage of impaired loans held steady at 0.34 over the quarter, Westpac said low dairy payouts were causing a rise in stressed loans. Agricultural loans make up nearly 8 per cent of the NZ arm’s portfolio, with dairy accounting for around 70 per cent of the $NZ8 billion agricultural loan book.
Couple of items:
Firstly --
You can see why the Reserve Bank does not worry about Heartland going phut:
Westpac has a dairy loan size of about portfolio of $5.5B;
Heartland has a TOTAL loan size of $2.9B.
[Important Note: I sincerely hope that the Heartland does not go phut.]
Lastly --
Any idea how Westpac defines stressed?
Here is all the Heartland Rural loans past due or impaired at end of Jun & Dec:
($ are thousands; big numbers at bottom: total rural loans)
http://i7.photobucket.com/albums/y26...08-NZX-HBL.png
As you can see they shuffled a lot of the 90+ loans over to [individually] impaired (which essentially means there are keeping a closer eye on them).
Outside of that there is little change and so far, actual provision for impairment is still insignificant.
Best Wishes
Paper Tiger
http://a.msn.com/r/2/AAgxhkS?a=0&m=en-nz
HBL wise not to foreclose on anyone. Little birdie told me the other day after talking to a leading farm broker they had "Listings for Africa" and anyone interested in buying could basically name their own terms.