HGH - Heartland Group Holdings

[bull....]

new structure there for big aquisition which they couldnt make under the current rbnz capital requirements ?

[Snoopy]

I would imagine that the new structure is designed to have the NZ-based entity operating as the registered deposit-taking bank and the Australian-based entity operating as a non-deposit taking lender.

Ah, a lightbulb just went on. No deposits from the public taken in Australia, means Heartland's new Australian arm administrating REL loans can avoid the scrutiny of the Reserve Bank of Australia?

If the Reverse Mortgage business is to grow, they will more capital though. If HLB shares are listed in Australia, then they can tap into all that Oz pension fund money. Using Oz pension funds for the future 'today', to fund the luxurious lifestyles of Oz pensioners 'today'! There is a nice kind of symmetry in that. New Heartland shares can be issued to pay for this because the REL business will be earnings per share accretive. But those Oz pension funds are hard nosed and will require a good deal. $A1.50 is a nice round figure, equating to around $NZ1.65. Next stop for the Heartland share price?

But let's hear that confirmed from HBL!

I like the way that Heartland want you heartlanders' vote, without telling you exactly what you are voting for!

SNOOPY

[percy]

I like the way that Heartland want you heartlanders' vote, without telling you exactly what you are voting for!

SNOOPY

I have not downloaded the scheme booklet,all 84 pages of it.
The printed copy is in the mail,so I will wait until I have read it, before commenting.

ps.Being listed in Australia will mean intos etc will be able to invest in Heartland Group.

[winner69]

Snoops ...plenty of info why it’s worthwhile doing all this ....even an Independent Advisors Report

http://nzx-prod-s7fsd7f98s.s3-websit...215/284495.pdf

[Snoopy]

Snoops ...plenty of info why it’s worthwhile doing all this ....even an Independent Advisors Report

http://nzx-prod-s7fsd7f98s.s3-websit...215/284495.pdf

Thanks Winner. Now here is a question arising.

On p19 of the independent advisors report, we learn the RBNZ restricts Heartland's secured assets to 20% of total assets. Why does this restriction exist? Surely the more loans that Heartland makes on secured assets, the better?

SNOOPY

[winner69]

Thanks Winner. Now here is a question arising.

On p19 of the independent advisors report, we learn the RBNZ restricts Heartland's secured assets to 20% of total assets. Why does this restriction exist? Surely the more loans that Heartland makes on secured assets, the better?

SNOOPY

Snoops, maybe you shouldn’t be thinking about that solely from a lending perspective?

Just a thought without investigating

[Beagle]

Market had a bit of a tantrum about the low EPS growth of just over 2% and saw straight through managements attempt to window dress this by rounding EPS to the nearest full cent in the investor presentation. Surely they weren't naïve enough to think we were all going to accept their 13 cps this year v 12 cps at face value ?

But now the market has vented it disappointment as sure as day follows night all is forgiven and investors are chasing that 5.5 cent fully imputed final dividend, (heck isn't it ironic that they managed to find a decimal point there with the dividend...one wonders why they couldn't round that up to 6 cents seeing as many people take shares in lieu of dividend anyway), and focusing on the promise heaps of growth for FY19, hopefully much of which will be real EPS growth with or without the lack of disingenious rounding.

Speaking of decimal places banks, while I'm having this wee evening rant, they seem quite capable of charging interest rates using one or two decimal places, often ending in a 9.... but my goodness its too hard to show this at face value in an investor presentation ? Surely they weren't trying to be deliberately disingenuous and make themselves look good, surely not, accurate reporting is far more important than just looking good isn't it ?

HBL management need a clip around the ears up about this...might do some barking at the annual meeting if I can be bothered going.

Anyway none of this matters...shares will be rounding up $1.80 soon enough and then on to a nice round $2 hopefully sometime next year. No need for rounding at $2 is there

[percy]

Market had a bit of a tantrum about the low EPS growth of just over 2% and saw straight through managements attempt to window dress this by rounding EPS to the nearest full cent in the investor presentation. Surely they weren't naïve enough to think we were all going to accept their 13 cps this year v 12 cps at face value ?

But now the market has vented it disappointment as sure as day follows night all is forgiven and investors are chasing that 5.5 cent fully imputed final dividend, (heck isn't it ironic that they managed to find a decimal point there with the dividend...one wonders why they couldn't round that up to 6 cents seeing as many people take shares in lieu of dividend anyway), and focusing on the promise heaps of growth for FY19, hopefully much of which will be real EPS growth with or without the lack of disingenious rounding.

Speaking of decimal places banks, while I'm having this wee evening rant, they seem quite capable of charging interest rates using one or two decimal places, often ending in a 9.... but my goodness its too hard to show this at face value in an investor presentation ? Surely they weren't trying to be deliberately disingenuous and make themselves look good, surely not, accurate reporting is far more important than just looking good isn't it ?

HBL management need a clip around the ears up about this...might do some barking at the annual meeting if I can be bothered going.

Anyway none of this matters...shares will be rounding up $1.80 soon enough and then on to a nice round $2 hopefully sometime next year. No need for rounding at $2 is there

Tomorrow morning increase the Kiwi fruit to three before breakfast.
Helps cure "the rants"...………………….lol.

[Snow Leopard]

Market had a bit of a tantrum about the low EPS growth of just over 2% and saw straight through managements attempt to window dress this by rounding EPS to the nearest full cent in the investor presentation. Surely they weren't naïve enough to think we were all going to accept their 13 cps this year v 12 cps at face value ?

But now the market has vented it disappointment as sure as day follows night all is forgiven and investors are chasing that 5.5 cent fully imputed final dividend, (heck isn't it ironic that they managed to find a decimal point there with the dividend...one wonders why they couldn't round that up to 6 cents seeing as many people take shares in lieu of dividend anyway), and focusing on the promise heaps of growth for FY19, hopefully much of which will be real EPS growth with or without the lack of disingenious rounding.

Speaking of decimal places banks, while I'm having this wee evening rant, they seem quite capable of charging interest rates using one or two decimal places, often ending in a 9.... but my goodness its too hard to show this at face value in an investor presentation ? Surely they weren't trying to be deliberately disingenuous and make themselves look good, surely not, accurate reporting is far more important than just looking good isn't it ?

HBL management need a clip around the ears up about this...might do some barking at the annual meeting if I can be bothered going.

Anyway none of this matters...shares will be rounding up $1.80 soon enough and then on to a nice round $2 hopefully sometime next year. No need for rounding at $2 is there

As far as I can remember they have always reported EPS to the nearest cent.
One year it did not go up at all, even though it did do some real up.

Tomorrow morning have a couple of large whiskeys with the three Kiwi fruit and then go back to you basket and sleep the rest of the day.

Repeat daily...

[Snoopy]

I also think it is not a satisfactory arrangement for The Reserve Bank of NZ to try and monitor a NZ Bank's business/exposure in Australia.
The Reserve Bank of NZ have worked with Heartland to find the right structure for Heartland.Heartland Bank to remain under The Reserve Bank of NZ's regulations,while Heartland's Australian operations are outside their mandate.

Percy's 'thought' looks like it has been adopted by the RBNZ as a policy in stone.

Look on the bottom line of Table 8, p23, of the Independent Analysis of the Heartland restructuring proposal. There you will find a Reserve Bank NZ restriction I have never heard of before: There is an undisclosed maximum amount of business that Heartland Bank is allowed to do outside of New Zealand. Yet for reasons unknown, Heartland will not disclose what that maximum figure is!

SNOOPY