HGH - Heartland Group Holdings

[Beagle]

....shame on them not maximising shareholder value doing these warm fuzzie things.

‒ 45 participants in the 2020/2021 Manawa Ako internship programme, up from 34 in 2019/2020.
‒ Launch of Rocket, a mobile-led financial literacy programme for school leavers.

All this ESG nonsense....Someone needs to put a rocket up them

Seriously, good on them for the financial literacy programme for school leavers...so many people coming out of school with very poor or no financial literacy skills whatsoever....sometimes I wonder if budgeting and saving for things that are lost skills from a bygone era.

[artemis]

....shame on them not maximising shareholder value doing these warm fuzzie things.

Maybe they are systems people.

[LaserEyeKiwi]

Big increase in people costs (+16%) seems at odds with digitalisation strategy (".......digitalise each customer touchpoint, including its processes and customer care services, enhancing the customer experience and reducing operational costs.)

Depends where those people have been hired. If it is to beef up the digital infrastructure then it is a one off jump that they will be able to leverage increased revenue off in future.

[beetills]

A shareholder from the beginning as a CBS shareholder, as well as a term deposit holder,but as they don't have a physical presence in Hamilton,as the term deposits come due they move them to other banks.
Maybe i'm just to old school.

[LaserEyeKiwi]

Forward Earnings multiple at 13x looks insanely cheap given the 2021 twelve months earnings expectations:

"Provided repayment activity and impairment asset expense forecasts are met and economic conditions continue to improve, Heartland expects NPAT for FY2021 to be at the upper end of the guidance range of $83m to $85m."

I also think the impact of the new Home loans product has been masked due to the lag time of Finance approvals -> property purchasers / bank refinancing transfers. Just $7.6 million on the books at year end, but over $300 million in lending approved.

• Home Loans1 Receivables increased +7.0m in 1H2021 to $7.6m.
• ‒ Following a successful pilot, Heartland’s digital Home Loans product was launched in October 2020 with conservative lending criteria targeting high quality applicants.
• ‒ Loans were slow to draw down over the summer holiday period, however strong application rates have continued with $303.6m approved online and $16.6m drawn down year to date.
• ‒ Challenges in converting applications to drawdowns are driven by time taken to process refinances from other banks and approved purchasers taking time to find and secure their desired property.

(I think this new Digital Home loan portfolio will grow to $1 Billon plus for Heartland fairly quickly)

[LaserEyeKiwi]

A shareholder from the beginning as a CBS shareholder, as well as a term deposit holder,but as they don't have a physical presence in Hamilton,as the term deposits come due they move them to other banks.
Maybe i'm just to old school.

Curious as to why a physical presence is crucial for your term deposit holdings? you are obviously on the internet, so why do you need a physical branch to visit? Not being critical, genuinely interested to know what you are missing form heartland in this regard.

[Snoopy]

A shareholder from the beginning as a CBS shareholder, as well as a term deposit holder,but as they don't have a physical presence in Hamilton,as the term deposits come due they move them to other banks.
Maybe i'm just to old school.

No physical presence for Heartland in Hamilton? Seriously? I thought Hamilton was the hub of the mighty rural heartland of Waikato! I am not surprised you are moving your term deposits beetils! But doesn't Heartland have an agency arrangement with Westpac? Are you sure you can't drop in there and do your Heartland business?

SNOOPY

[dabsman]

No physical presence for Heartland in Hamilton? Seriously? I thought Hamilton was the hub of the mighty rural heartland of Waikato! I am not surprised you are moving your term deposits beetils! But doesn't Heartland have an agency arrangement with Westpac? Are you sure you can't drop in there and do your Heartland business?

SNOOPY

Who needs to go to a bank to roll a TD?

[beetills]

No physical presence for Heartland in Hamilton? Seriously? I thought Hamilton was the hub of the mighty rural heartland of Waikato! I am not surprised you are moving your term deposits beetils! But doesn't Heartland have an agency arrangement with Westpac? Are you sure you can't drop in there and do your Heartland business?

SNOOPY

Before they closed branch down i tried to open a term deposit with cash not knowing they no longer handled cash.I was referred to Westpac across road but on leaving i turned left and opened a term deposit at the local Credit Union.

[beetills]

Curious as to why a physical presence is crucial for your term deposit holdings? you are obviously on the internet, so why do you need a physical branch to visit? Not being critical, genuinely interested to know what you are missing form heartland in this regard.

Not crucial but i love the old way.