HGH - Heartland Group Holdings

[Waltzing]

HGH then is basically a banking broker...

[KJMLimited]

The outcome is no different from how any bank operates then. They take in other people's money, and lend it out to other people with not much of their own in between.

[Snoopy]

Heartland has a separate licence.

Yes. But that hasn't stopped them outsourcing their Mom and Dad customer arrangements to Westpac.

What is the extent of their agreement? Does Heartland have to offer the same terms, conditions and interest rates as Westpac?

It would be a wholesaling agreement. And it would have been negotiated in such a way that allowed Heartland to set their own deposit and loan rates. As long as what was negotiated doesn't mean that Westpac breaches their own banking covenants!

For example if Westpac were to be in difficulties and the OBR were instigated, would accounts at Heartland be affected too?

Yes Heartland would be affected. I can't see how they could escape it. The saving grace is that as a Heartland customer you are effectively a wholesale Westpac customer. So if the government announced that all personal accounts at Westpac were to be frozen for 48 hours, that might not apply to your Heartland account as a matter of course.

If It is just a matter of needing to go to a bricks and mortar Westpac branch to make cash and cheque deposits and cash withdrawals, then it would just be to use Westpac as an agent. It would hardly mean Heartland accounts are Westpac accounts.

Get the full 19 digit banking codes of all of your Heartland accounts. Any that start with '03' are Westpac accounts. Yes Heartland are using Westpac as an agent. That fact alone doesn't mean that Heartland accounts are Westpac accounts. But in this instance they are.

SNOOPY

[Greekwatchdog]

Like the CEO address http://nzx-prod-s7fsd7f98s.s3-websit...198/336436.pdf

• Finally, the possibility of structuring the Bank’s Motor business as a separate entityunder the Bank may assist in highlighting any intrinsic value which may not be reflectedin current bank-based benchmarking. This may also provide flexibility and efficiency interms of access to, and cost of, capital.

[Waltzing]

yes since no one is going to want those old gas powered thingee's ..... crushed within 10 years...but the finance companies get there money and you dont... love it... all i need in sweden is a bike and for the hangers on ... which one of you took my bike today!!! They all peer at me.. NOT ME! only you cant even trust your nearest and dearest...

imagine all those car finance agreements on holden V6 and 8's i feel sorry for all those kiwis...

anyone have any numbers on model types... those will be the hardest to sell on soon..

[Beagle]

The pedigree hound is always happy to back his own sense for a decent feed. Looking very good so far !

• Net profit after tax $29.9 million vs. full year guidance $83 million to $85 million
• Net interest margin and cost to income ratio in line with expectations
• Overall balance sheet growth flat – repayments in non-core Relationship Lending as well as
Open for Business and Harmoney have offset growth in core areas (Business Intermediated,
Motor, Reverse Mortgages NZ and Reverse Mortgages Australia)
• Economic overlay taken in FY20 has not been utilised
• Impairments to date much lower than anticipated
• Reassessment of fair value of equity investment in Harmoney may impact FY21 NPAT guidance
range

Heck Winner - who are they kidding with $83-$85m, 3 times 29.9m = 89.7m so with ongoing growth they should do $90m+ !!...and they're not utilizing last year's Covid overlay.
Hmmm...opportunity knocks !

[Bjauck]

Yes. But that hasn't stopped them outsourcing their Mom and Dad customer arrangements to Westpac.

It would be a wholesaling agreement. And it would have been negotiated in such a way that allowed Heartland to set their own deposit and loan rates. As long as what was negotiated doesn't mean that Westpac breaches their own banking covenants!

So do you know for certain that it is a wholesale agreement and not merely and agreement use Westpac branches as agents? Have you got any links? Surely the agreement should be available to the public if an account holder is affected by Westpac operations?

Get the full 19 digit banking codes of all of your Heartland accounts. Any that start with '03' are Westpac accounts. Yes Heartland are using Westpac as an agent. That fact alone doesn't mean that Heartland accounts are Westpac accounts. But in this instance they are.

SNOOPY

I may have missed it and cannot locate it, but have Heartland announced or published a disclosure statement indicating their arrangement is an Wholesaling agreement as opposed to an agency for use of their branches?

I am not sure that codes really help - 06 (old National Bank) codes are not really independent from 01 codes.

[Bjauck]

The pedigree hound is always happy to back his own sense for a decent feed. Looking very good so far !


Heck Winner - who are they kidding with $83-$85m, 3 times 29.9m = 89.7m so with ongoing growth they should do $90m+ !!...and they're not utilizing last year's Covid overlay.
Hmmm...opportunity knocks !

So far the fears from about six months have not eventuated.

[winner69]

So pleased to see a photo of Natasha Abeysundara in the presentation - member of the Rangatahi Advisory Board

Natasha a good person

[Doug]

RaboBank accounts also have an 03 prefix. I've been banking with RaboBank for many years even when they were guaranteed by their Dutch parent owner and I've never seen the slightest sign that they are financially entangled with Westpac. I suspect WestPac are simply leasing space on their servers to them.