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  1. #13031
    always learning ... BlackPeter's Avatar
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    Quote Originally Posted by freddagg View Post
    ROE improving 11.7% on 1H2019 ?
    Absolutely - there are plenty of fundamental reasons why SP might go up .... but I was responding to a post which claimed it goes up because of the declared dividend.
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  2. #13032
    percy
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    Heartland launches reverse mortgages for investors
    Heartland has expanded its reverse mortgage business and will now lend against investment properties and second homes, as the product becomes more popular in New Zealand.
    Tuesday, February 18th 2020






    The lender has launched its new product, the Second Property Loan, off the back of strong growth.
    Heartland will provide reverse mortgages to over 60s on second homes, investment properties and holiday homes.
    The product is aimed at people who may not want to release equity from their main residence.
    The money can be used for home improvements, debt consolidation, travel or bills, and the firm is offering the same guarantees as its main reverse mortgage lending products.
    The new product line comes amid significant growth for Heartland, as reverse mortgages become more popular on both sides of the Tasman.
    Heartland Bank announced its half-year results this week, and recorded a 10% increase in its New Zealand reverse mortgage book as consumers become more aware of equity release products.
    Heartland posted its results for the six months to December, with group net profit of $39.9 million after tax, an increase of 20.4% on the comparable period the year before.
    Receivables grew by 8% year on year to $4.46 billion, and the finance group and bank recorded a return on equity of 11.7% for the year.
    A growth in reverse mortgages here and in Australia was a key reason for the profit boost and revenue increase, the company said.
    New Zealand reverse mortgages receivables grew $26 million, 10% growth year on year. NZ reverse mortgage net operating income rose to $13 million, up $2.7 million.
    Andrew Ford, head of retail, told TMM Online the reverse mortgage growth was mainly down to increased awareness in NZ.
    He said customers ranged from 60-90 years of age, and tended to use the cash to renovate homes, make retirement more comfortable, and provide extra income for expenses.
    Ford said low interest rates have put downward pressure on retirees’ term deposit income, leading some customers to seek additional funds.
    “They are having to eat into savings or tighten their belt. Reverse mortgages are a way to maintain the lifestyle they desire and deserve. It can be transformational.”
    Mortgage advisers only represent about 10% of Heartland’s reverse mortgage business, Ford said. He believes advisers have the chance to broaden their business and encourage clients to talk about the products with their families.
    “We have dedicated resources to get out there and talk to advisers,” Ford said. “There’s a great opportunity for advisers to talk to potential customers, as well as the children of potential customers, who may not be aware of these solutions, as banks tighten their lending criteria.”

  3. #13033
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    Quote Originally Posted by percy View Post
    Expect they are softening us up for a big cash issue to buy UDC.???...lol.
    Heartland not in the running for UDC according to the AFR : https://www.interest.co.nz/banking/1...nts-are-duking

  4. #13034
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    Quote Originally Posted by iceman View Post
    Heartland not in the running for UDC according to the AFR : https://www.interest.co.nz/banking/1...nts-are-duking
    Whew ...that’s a relief
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  5. #13035
    percy
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    Quote Originally Posted by iceman View Post
    Heartland not in the running for UDC according to the AFR : https://www.interest.co.nz/banking/1...nts-are-duking

    Although I was happy for HGH to buy UDC at a reasonable earnings accretive price,I think it is good to see they will not pay more than than see as fair value.
    Pleasingly HGH has plenty of organic growth with RELS and O4B,using recycled funds from less profitable higher risk lending,ie business and rural relationships.
    So was UDC speculation built into HGH's share price.?
    Will UDC being sold at a high price see HGH's share price re-rated higher.?
    Last edited by percy; 22-02-2020 at 08:27 AM.

  6. #13036
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    Quote Originally Posted by percy View Post
    Although I was happy for HGH to buy UDC at a reasonable earnings accretive price,I think it is good to see they will not pay more than than see as fair value.
    Pleasingly HGH has plenty of organic growth with RELS and O4B,using recycled funds from less profitable higher risk lending,ie business and rural relationships.
    So was UDC speculation built into HGH's share price.?
    Will UDC being sold at a high price see HGH's share price re-rated higher.?
    Hopefully it will go a bit lower. I sold half of mine 2 weeks ago as I did with HLG and some others, while I await the coronavirus economical threat to be completely over. Put the cash on 6 months fixed term so I can't touch it until then !! So happy for HGH to follow HLG a bit lower in the meantime :-)

  7. #13037
    ShareTrader Legend Beagle's Avatar
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    For my money, if the AFR report is true I am happy they are not in the running to buy UDC. They are growing organically at a strong pace already and this is not the time to be going out on a limb taking any sort of major risk with a big acquisition.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  8. #13038
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    Not holding shares in Heartland. But I do have a Term Deposit with them. Their systems dont seem to be as versatile and professional as the other banks. Lastly advertising up to $100k on business loans without security over your house, does worry me. In a downturn, just wonder how secure my TD would be. I think I will take it out at earliest opportunity. Mind you unsecured loans to get more interest. But really a bank? or a risky finance company. Not paying me enough interest for the risk.

  9. #13039
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    Quote Originally Posted by iceman View Post
    Hopefully it will go a bit lower. I sold half of mine 2 weeks ago as I did with HLG and some others, while I await the coronavirus economical threat to be completely over. Put the cash on 6 months fixed term so I can't touch it until then !! So happy for HGH to follow HLG a bit lower in the meantime :-)
    .

    that was a really good move.
    I only sold about a quarter of mine 2 weeks ago.
    Like Beagle I increased my holdings in January but was regretting doing so late in the month.
    Would appreciate hearing from Beagle or anyone else about the quality of all their loans and what will happen if there is a run on the money deposited.

  10. #13040
    ShareTrader Legend Beagle's Avatar
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    Hi Fish,

    HGH's capital ratio is significantly better than the Australian banks so I think this gives them a good buffer. That said I think on average they engage in more "finance company" type lending so they are possibly a bit more vulnerable in a major recession from losses associated with that lending.

    The open banking resolution is something that the Reserve Bank can impose to assist financial stability in times of great trouble.
    I am not concerned about money on deposit with them at this stage but in terms of the shares, banks typically do poorly in a recession so if that's what's coming then we can probably expect the shares to come under pressure.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

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