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02-12-2015, 06:42 PM
#6781
Hmmm, a good thing ? Extract from the link I provided at post #6783 regarding Rabobank
latest General Disclosure Statement.
"Since 30 June 2015 dairy commodity prices have fallen sharply from already low levels. Farm gate milk prices are now at their lowest levels since 2002. Loans to dairy farmers make up more than 50% of the Bank's overall ($9.314 billion) loan portfolio. Very low prices for an extended period would increase dairy farm loan defaults and the potential for higher loan loss provisions in the Bank's dairy portfolio," Rabobank says.
Pretty interesting style of leadership that ended up with that sort of concentrated sector risk, I would have thought. Did he jump or was he pushed ? Rabobank mentioning his departure in a one liner within a regular disclosure statement suggests quite strongly to me whether he was pushed or otherwise his departure wasn't on amicable terms.
The net result from so much sector risk concentration... so far... http://www.interest.co.nz/rural-news...e-income-falls
I hope for investors sake he's kept on a tighter leash that when he was at Rabobank.
Last edited by Beagle; 02-12-2015 at 06:51 PM.
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02-12-2015, 07:27 PM
#6782
Originally Posted by McD
Just noticed the Head of Rural Banking is no longer on the web-site - can't see an NZX announcement - did I miss something ?
Found a replacement already they have
McD posted his observation Oct 27th ....hmmm
Last edited by winner69; 02-12-2015 at 07:29 PM.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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02-12-2015, 07:44 PM
#6783
Stranger than fiction
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02-12-2015, 07:45 PM
#6784
Originally Posted by Joshuatree
Stranger than fiction
Really weird eh mate?
”When investors are euphoric, they are incapable of recognising euphoria itself “
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02-12-2015, 07:52 PM
#6785
Originally Posted by percy
Sorry to see Mark go,but let's welcome Richard.
Richard Lorraway comes to the position with 25 years banking experience,lately with Kiwi Bank.
The timing of that appointment was also interesting
Last edited by winner69; 02-12-2015 at 08:26 PM.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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02-12-2015, 08:16 PM
#6786
Originally Posted by Roger
Hmmm, a good thing ? Extract from the link I provided at post #6783 regarding Rabobank
Pretty interesting style of leadership that ended up with that sort of concentrated sector risk, I would have thought. Did he jump or was he pushed ? Rabobank mentioning his departure in a one liner within a regular disclosure statement suggests quite strongly to me whether he was pushed or otherwise his departure wasn't on amicable terms.
The net result from so much sector risk concentration... so far... http://www.interest.co.nz/rural-news...e-income-falls
I hope for investors sake he's kept on a tighter leash that when he was at Rabobank.
Rabobank is essentially a bank specialising in rural lending. The fact he was with the bank since 1989 suggests he was pretty much with them from about the time they moved into NZ.
That would suggest to me that about 4.6 billion of rural lending,(total at the present time) plus loans paid off,bridging finance etc. has been done whilst he was either at the helm or in a reasonably high position, to have the experience to grow the portfolio at Heartland.
Every lending institution that lends to dairy is going to have some form of writedown to varying degrees because of the downturn,and more so a specialist lender, I think HNZ have seen the potential for growth in this sector and are looking ahead,and taking the experience he brings.
Growing the rural lending book is a massive opportunity,and he has the experience.
I have every confidence in HNZ's management,and the decisions they make.
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02-12-2015, 09:25 PM
#6787
Do not let him have a firearm, he shoots himself in the foot too often as it is.
Originally Posted by Roger
Hmmm, a good thing ? Extract from the link I provided at post #6783 regarding Rabobank
Pretty interesting style of leadership that ended up with that sort of concentrated sector risk, I would have thought. Did he jump or was he pushed ? Rabobank mentioning his departure in a one liner within a regular disclosure statement suggests quite strongly to me whether he was pushed or otherwise his departure wasn't on amicable terms.
The net result from so much sector risk concentration... so far... http://www.interest.co.nz/rural-news...e-income-falls
I hope for investors sake he's kept on a tighter leash that when he was at Rabobank.
As such a forward looking chap I thought you would have noticed that your link is two years old.
Must be the ex-auditor in you.
And if you can ever find some verification for your "...most of the other banks that are being conservative and really ramping up dairy sector loan provisioning..." post be sure to let us know
Best Wishes
Paper Tiger
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02-12-2015, 09:37 PM
#6788
Lol ,love it and all true.Many hundreds of one eyed repetitively ,negatively slanted posts for all to see ,from a non holder.Why,what good does it do for this forum?
Last edited by Joshuatree; 02-12-2015 at 09:51 PM.
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03-12-2015, 09:01 AM
#6789
To bring a balance perspective on stock. People looking to invest can make informed decision.
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03-12-2015, 09:06 AM
#6790
Originally Posted by Joshuatree
Lol ,love it and all true.Many hundreds of one eyed repetitively ,negatively slanted posts for all to see ,from a non holder.Why,what good does it do for this forum?
This is what I dislike about finance companies and am keen to warn others about and have. Much like back in the days of the GFC HNZ are lending willy-nilly to consumers, often with poor or no security and its all in the name of profit growth so the bankers can collect their juicy bonus. Trouble is when the real pressure comes on, like it is with Dairy at the moment they then make big sector write-off's and then try and claim its an extraordinary item and not part of their normal operating profit. Now who was ultimately responsible for this $83 million write-off, the poor manager who had a breakdown or your esteemed leader currently running HNZ ?
http://www.nzherald.co.nz/nz/news/ar...ectid=10624635 Does a tiger change its stripes ? Another old link just for your benefit PT. Does history repeat ?
Speaking of Tiger's, I was tired yesterday PT and didn't notice it was an old link. W69 already kindly provided you with a link regarding the BNZ's provisioning which is the only bank currently compling with the new accounting standard regarding this matter but there have been other announcements and there will be plenty coming...surely I don't have to spoon feed a tiger ?
You guys trust the team if you like but the track record is there for all too see.
Hope the rural lending manager that left / was dismissed / was shunted sideways, didn't suffer the same fate as that poor bloke in the link Dairy farmers with huge debt have described the current environment as "like going through a meat grinder"...I suppose its not a dissimilar experience being a rural lending manager at present.
Joshuatree -If you find my posts get under your skin there's always the ignore button. Nobody's got a gun to your head making you read them. That said, with the posting of this link (which a friend of mine kindly sent me last evening), which graphically illustrates what happens when a problem sector of debt has to be "marked to market" I feel my job is done.
Last edited by Beagle; 03-12-2015 at 09:35 AM.
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