HGH - Heartland Group Holdings

[winner69]

Hope Heartlands modelling is better than Westpac’s

https://www.interest.co.nz/business/...after-material

This a quite a concerning matter. Westpac have been doing things their way for many years but what’s really bad is the RBNZ did not pick up on it. Pretty shoddy all round. Prudential supervision seems pretty weak, almost non-existent.

Sort of says depositors, creditors and shareholders can’t rely on the information any bank publishes.

Even Heartland could get tainted with this news.

[percy]

This a quite a concerning matter. Westpac have been doing things their way for many years but what’s really bad is the RBNZ did not pick up on it. Pretty shoddy all round. Prudential supervision seems pretty weak, almost non-existent.

Sort of says depositors, creditors and shareholders can’t rely on the information any bank publishes.

Even Heartland could get tainted with this news.

Really????????????????????????????????????
Could,but will not,as we all know there is a huge difference between an Australian Bank, and a New Zealand Bank..One respects The Reserve Bank of NZ, while the other does not.

[kiwico]

Hello all,

Any idea why HBL is showing has having dropped 30% today? The same drop appears in the iPhone stock app.

HBL.png

[Whitebeard]

Theres a blip in the data feed. Its been incorrect in most places today for some oddball reason.

[percy]

Let's keep Beagle's remark in perspective. Yes there are banks with larger exposure to agriculture in general and dairy in particular than Heartland when measured in dollar terms. But there is no listed bank in NZ with a higher exposure to dairy in portfolio percentage terms, and that is what really matters. This is no surprise because Heartland used to be thought of as a specialist rural lender. These days the heartland of New Zealand has a new meaning: Reverse mortgages in Remuera.

SNOOPY

Please back up this statement with some facts.

[Beagle]

Page 666 spooky eh..."the love of money is the root of all evil" 1 Timothy 6:v10 https://www.biblegateway.com/passage...10&version=KJV "Neither a lender nor borrower be" Shakespeare. Hopefully this post helps turn the page lol

[percy]

Page 666 spooky eh..."the love of money is the root of all evil" 1 Timothy 6:v10 https://www.biblegateway.com/passage...10&version=KJV "Neither a lender nor borrower be" Shakespeare. Hopefully this post helps turn the page lol

Trust you are selling your sin shares.
I have grown used to living in sin.In fact I rather enjoy it.!
Just wish I was younger to take full advantaged of more sinful pursuits.!..lol.

ps.Trust you do not continue profiting from taking advantage of old people in retirement.Turn the other cheek and sell SUM of them too.

[Snoopy]

Please back up this statement with some facts.

The listed banks on the NZX comprise ANZ, WBC and HBL. ANZ I believe has the largest gross exposure to agriculture. See my post 397 on the ANZ thread.

$19,787m / $186,266m = 10.6% of the loan book (from FY2016 year). But that of course covers all of agriculture, not just dairy.

From my post 9343 on the Heartland thread:

---------

Industry Group Risk

From reference Note 12c, the greatest 'business group' risk in dollar terms is Agriculture, with $712.072m worth of assets. This represents:

$712.072m/ $3,718.710m = 19% of all loans

This is slightly up on FY2016, when agriculture was

$628.202m/ $3,461.292m = 18% of all loans

These figures are quite high and continue trending in the wrong direction for HY2017. Given that Heartland is nominally a specialist agricultural lender I wouldn't be too concerned. But if agricultural loans go above 20% of the total (or dairy representing about half the agricultural loans above 10%), then I would sound an alarm bell.

-----------

Heartland have already admitted that dairy is around 50% of their rural lending. So the proportion of Heartland loans just in dairy is roughly the same as the proportion of all agricultural loans in ANZ.NZ. Of course you cannot buy shares in ANZ.NZ (the New Zealand bit carved out). You can only buy shares in the whole ANZ bank based out of Australia. And that reduces ANZ shareholder exposure to rural loans in total to well below 10%. My guess is that exposure to dairy on a straight HLB vs ANZ comparison in bank portfolio terms would see Heartland's dairy exposure higher by a factor of three. Of course the ANZ loan portfolio has its own risk factors. But nothing else listed in NZ comes within cooee of Heartland if you want dairy loan exposure.

SNOOPY

[percy]

The listed banks on the NZX comprise ANZ, WBC and HBL. ANZ I believe has the largest gross exposure to agriculture. See my post 397 on the ANZ thread.

$19,787m / $186,266m = 10.6% of the loan book (from FY2016 year). But that of course covers all of agriculture, not just dairy.

From my post 9343 on the Heartland thread:

---------

Industry Group Risk

From reference Note 12c, the greatest 'business group' risk in dollar terms is Agriculture, with $712.072m worth of assets. This represents:

$712.072m/ $3,718.710m = 19% of all loans

This is slightly up on FY2016, when agriculture was

$628.202m/ $3,461.292m = 18% of all loans

These figures are quite high and continue trending in the wrong direction for HY2017. Given that Heartland is nominally a specialist agricultural lender I wouldn't be too concerned. But if agricultural loans go above 20% of the total (or dairy representing about half the agricultural loans above 10%), then I would sound an alarm bell.

-----------

Heartland have already admitted that dairy is around 50% of their rural lending. So the proportion of Heartland loans just in dairy is roughly the same as the proportion of all agricultural loans in ANZ.NZ. Of course you cannot buy shares in ANZ.NZ (the New Zealand bit carved out). You can only buy shares in the whole ANZ bank based out of Australia. And that reduces ANZ shareholder exposure to rural loans in total to well below 10%. My guess is that exposure to dairy on a straight HLB vs ANZ comparison in bank portfolio terms would see Heartland's dairy exposure higher by a factor of three. Of course the ANZ loan portfolio has its own risk factors. But nothing else listed in NZ comes within cooee of Heartland if you want dairy loan exposure.

SNOOPY

At last count I saw ANZ had over $11billion in dairying.
Other big lenders were CBA and BNZ.Not sure about NAB.
So as a % ANZ still leads the field.
KPMG may help you to get your research right.
Rather than try and just compare HBL with ANZ,do the job properly. A half baked effort again.

[Beagle]

Trust you are selling your sin shares.
I have grown used to living in sin.In fact I rather enjoy it.!
Just wish I was younger to take full advantaged of more sinful pursuits.!..lol.

ps.Trust you do not continue profiting from taking advantage of old people in retirement.Turn the other cheek and sell SUM of them too.

What's that you say ?, there's something wrong with my ears they don't seem to be working properly
https://www.mercury.co.nz/
Have we turned the page yet