HGH - Heartland Group Holdings

[percy]

your missing the point hgh has always been higher than the banks no argument there , but now it is going backward's ... something has gone wrong ?

Nothing wrong.
Just a slight adjustment to their lending mix.More first mortgages.
Read their presentation.
Heartland’s NIM is expected to stabilise at its current level as Heartland continues to proactively manage portfolio pricing and margin in
competitive markets.

http://nzx-prod-s7fsd7f98s.s3-websit...457/389620.pdf

[bull....]

Nothing wrong.
Just a slight adjustment to their lending mix.More first mortgages.
Read their presentation.
http://nzx-prod-s7fsd7f98s.s3-websit...457/389620.pdf

less profitable mortgages are you saying

[Rawz]

those mortgages could generate more on the bottom line. they are all digital so less human interaction compared to the banks. Cant just compare NIM for true performance

[Snoopy]

heartland net int margin had a big fall last yr not good when compared to other banks increasing their's

Bull, it is times like this that we Heartland shareholders need to remind you that Heartland is not really a bank. All of Heartland's 'banking' is done via Westpac's banking licence. So don't worry, Westpac has got us covered. Heartland is merely a finance company with a thin layer of bank marketing veneer pasted over the top of it. To use a painting and panel beating analogy, Heartland is what you call a 'wrap bank'.

Notice Heartland have gone very quiet on the 'fintech' angle as well, as such lenders crash overseas. Heartland are even going after regular mortgages to show how 'responsible' and 'conservative' they are. Latest reporting shows a big decrease in their capital allocation to fintech (or was that just the 'marking to market' of their Harmoney stake?).

Anyway far bigger things to worry about in NZ, like the collapse of the health system and the re-emergence of third world diseases. Even Heartland getting in on the act. It is a long time since a death of Ricketts has made mainstream news.

SNOOPY

[Muse]

less profitable mortgages are you saying

Personnel lending via harmoney went into run off. It was HGH highest NIM % contributor, but given HGH was actually doing P2P lending through it (before harmoney disc P2P) it also had the highest credit losses. That dropping away accounts for a large proportion of the drop in FY22 NIM.

Ive always advocated NLM margin as the better one (NIM less incurred credit losses) as it arguably far more relevant and somewhat adjusts for the mix of risk.

The credit quality of receivables has improved significantly over the last 5 years.

[percy]

less profitable mortgages are you saying

Yes.....................
Fiordland Moose's posts better explains HGH's strategy.

[bull....]

Bull, it is times like this that we Heartland shareholders need to remind you that Heartland is not really a bank. All of Heartland's 'banking' is done via Westpac's banking licence. So don't worry, Westpac has got us covered. Heartland is merely a finance company with a thin layer of bank marketing veneer pasted over the top of it. To use a painting and panel beating analogy, Heartland is what you call a 'wrap bank'.

Notice Heartland have gone very quiet on the 'fintech' angle as well, as such lenders crash overseas. Heartland are even going after regular mortgages to show how 'responsible' and 'conservative' they are. Latest reporting shows a big decrease in their capital allocation to fintech (or was that just the 'marking to market' of their Harmoney stake?).

Anyway far bigger things to worry about in NZ, like the collapse of the health system and the re-emergence of third world diseases. Even Heartland getting in on the act. It is a long time since a death of Ricketts has made mainstream news.

SNOOPY

can i remind you too hgh brought challenger bank in aus a bank that no one has been able to make profitable.

[alokdhir]

Reading all above posts including hint of expected SP by W69 with keen interest ....maybe my original expectations will come true and Mike will be happy to see SP below $ 1.53 which he was so craving for ....

Big question remains which the holders and true inside knowledge people like Percy/ FM shud advise on to non holders ....Will it be good buy for LT around that SP or we people shud stay away and outside only ....unbiased views will be very helpful please

[bull....]

Personnel lending via harmoney went into run off. It was HGH highest NIM % contributor, but given HGH was actually doing P2P lending through it (before harmoney disc P2P) it also had the highest credit losses. That dropping away accounts for a large proportion of the drop in FY22 NIM.

Ive always advocated NLM margin as the better one (NIM less incurred credit losses) as it arguably far more relevant and somewhat adjusts for the mix of risk.

The credit quality of receivables has improved significantly over the last 5 years.

but why has nim been declining for years ? even in there presentation the squiggly line has a downtrend look too it

[nztx]

KPMG review of NZ banking sector 2022

Banks don’t make excessive profits but Kensington says -

Tough times ahead. Kensington said all the bank chief executives and chief financial officers recognise their organisations have been “making hay”, but that the economy is likely heading into a slowdown or recession.

In previous crises, such as the 1989 share market crash and the global financial crisis (GFC), the NZ economy has generally weathered the first couple of years very well, but it’s been the third and fourth years in which most distress has been felt, he said.

That’s also likely to be true of the covid pandemic.

Lot of stuff in report but some charts/tables show HGH relative performance to others


https://assets.kpmg.com/content/dam/...banks-fips.pdf

Wonder how the local Fed Reserve of Adrian Orrsome's RB empire is holding up ?

Robbo and Orrsome have have been quiet of late .. finding the readies for Flood Relief Support
a Budget and potential turbulence with hyped interest rates might be causing a few headaches
and differences of opinion

At least $2 bills were in the piggy bank for some bene rises and a few other things ..