HGH - Heartland Group Holdings

[winner69]

I see a hound called heartland starts in race 5

not really percy, but couldn't resist

Thanks guys .... dogs are not my game

Interesting site - there was a hound called Percy's Dream a while .... bit slow so was retired which is another way of saying euthanized or just put out of its misery (owners misery that is)

Couldn't find a Heartland but what a great idea .... Heartland could race a greyhound .... call it Heartland Bank (pity it couldn't race in green cause they don't have green jackets for dogs) ..... let it win 20 races in a row .... be in TV a lot ..... and when it got famous it ne on National News .... and have a fan club ..... cheap advertising I reckon

And Jeff could be the trainer

[Minerbarejet]

Thanks guys .... dogs are not my game

Interesting site - there was a hound called Percy's Dream a while .... bit slow so was retired which is another way of saying euthanized or just put out of its misery (owners misery that is)

Couldn't find a Heartland but what a great idea .... Heartland could race a greyhound .... call it Heartland Bank (pity it couldn't race in green cause they don't have green jackets for dogs) ..... let it win 20 races in a row .... be in TV a lot ..... and when it got famous it ne on National News .... and have a fan club ..... cheap advertising I reckon

And Jeff could be the trainer

OMG now we have really gone to the dogs

[Xerof]

W69, champ, are you smoking those dog biscuits again.......

[RTM]

Quite happy if Heartland never gets exciting. I hope it gets so boring and predictable we don't need to discuss it here.

Well that punt with the TAB money was a waste of time .....HNZ not seen as a star by an irrational market. Put the cash back in the TAB ..bugger the ABs not playing this week and the Warriors are playing the drug runners so that's too dangerous so might have a play around with Djokavich in th tennis

Well the brokers got a few dollars out of it anyway

One day HNZ might just get exciting

[Snoopy]

Snoopy and All

You should relax a bit.

Almost? all banks have net withdrawals on the contractual profile for periods upto one year.

What UBS meant by "Tier 1 Risk Share Lending: > 20%" I do not know and can not find a copy of the report to find out.

However in an ideal world HNZ would have a Tier 1 Capital Ratio of greater 14.5% but 20% would be excessive.

At 30 Jun 13 HNZ was:
Tier 1 CR: 13.8% (min 12%)
Total CR: 13.8% (min 12%)

by comparison at 30 Jun 13 ANZ (NZ) was:
Tier 1 CR: 10.7% (min 6%)
Total CR: 12.4% (min 8%)

So although HNZ would breach it conditions earlier in a crunch it is as 'robust' as the next bank (ANZ).

I would say the relative health of HNZ verses ANZ (NZ) for example shows that Heartland is superficially more 'robust' in absolute terms all things being equal. However, the Reserve Bank is telling us all things are not equal, because they have set different requirements of Tier 1 capital to be held by HNZ and ANZ (NZ).

HNZs 13.8% of Tier 1 capital is only 1.8 percentage points above the 12% requirement.

ANZ (NZ)'s 10.7% Tier 1 capital is 4.7 percentage points above the 6% requirement.

Thus in their present position, I would class ANZ (NZ) as over 2.5 times as robust as HNZ.

SNOOPY

[Snoopy]

HNZ would be paying a fee for the right to sell the securitized assets, at an agreed price, within an agreed period. Rather like securing an overdraft facility in that an establishment fee is paid whether or not the borrower ever utilises the overdraft.

In the light of no-one else offering an explanation, yours is the most plausible Macduffy. Did you see this note on the two securitsed trusts in the outlook statement?

"(3) Heartland Trust and CBS Canterbury Charitable Trust were deconsolidated on 1 July 2012."

What does it mean?

SNOOPY

[percy]

Sharetrader AM update for Saturday 31 August 2013; Scoop business,
PGG Wightson sells Heartland stake for $11.3m to cut debt.
"through a brokerage"
A large placement at a discount can put a bit of a damperer on a stock in the short term,said James Smalley,a director of Hamilton Hindin Greene.
Funny none of us heard anything about it.!!

[percy]

Well, we predicted the selldown Percy. I'm surprised it didn't happen sooner.

The Heartland/PGW relationship will continue along as per normal. Nothing will change there, even though the shares have been been sold down.

If anything, the shares are more likely to move up in the medium term now that the overhang has ended.

I agree with you that having that overhang out of the way is positive,and like you thought it would happen awhile ago.
Just surprised that none of us heard about it.You deal with Forbar and FCNZ,I deal with Craigs,while others here are with ASB,DD,and Macquaries.Can't believe it was HHG,so who did the deal?

[Snoopy]

Perhaps you should read Note 38 of the 2013 Full Year Accounts?

Best Wishes
Paper Tiger

Note 38 refers to the forecast cashflows over selected future time periods, assuming no new deposits taken in or lending. When they produced an unfavourable picture you suggested that the no new deposits scenario was not realistic, and in practice the almighty cashflow hole over the next year would not occur. So really we are back to my original premise, before I saw those cashflow statements. Namely that there is not enough information in the accounts to really know whether in reality cashflow will be a problem or not.

I guess there are several depositors on the books who may have their money in a 'cash' account or on ninety day terms. These accounts are payable on maturity (90 days) or instantly (cash). But in actuality the vast majority of customers may just roll over their 90 day investments or just leave their cash there. Thus the theoretical worst case scenario is practically not realistic.

What would be helpful is if we knew the retention rate of these shorter term accounts. I remember before amalgamation PGW Finance were very relaxed about publishing these and I think the rollover rate was around 80%. What a pity the combined Heartland does not do the same. But let's use this 80% reinvestment rate as a rule of thumb and see how the cash deficit looks over the next year:

Expected Cash Reinvested = ( 0.8*0.8*0.8*0.8*$452.201m + 0.8*0.8*$859.386 + 0.8*$387.333 )
= $185.221 + $550.007 + $309.866 = $1045.094m

That takes care of the $780.094m projected cash deficit. But is the 80% retention rate really realistic?

Undrawn bank facilities of $240m are still there too, as an extra back up.

Of course there is still the remaining shareholders equity of $370.542m too. But if the bank wants to grow they really need to keep that and add to it.

SNOOPY

[percy]

A stake like that may not have been gobbled up by retail clients. It may have been an institution who bought it lock stock and barrel.

That would make sense.
We wait with interest to see who ?
In the meantime we say "a warm welcome to you." [who ever you are] !!!