HGH - Heartland Group Holdings

[Onion]

http://www.reuters.com/article/2014/10/28/fitch-upgrades-nzs-heartland-bank-affirm-idUSFit80002120141028?feedType=RSS&feedName=financ ialsSector

Heartland Bank Limited

KEY RATING DRIVERS - IDRs AND VR The upgrade of HBL's Long- and Short-Term IDRs and VR reflect the bank's consistent reduction in non-core assets resulting in improved asset quality and stronger earnings. At the financial year end 30 June 2014 (FY14) HBL's non-core asset portfolio stood at NZD41m. HBL expects to reduce the portfolio to NZD26m by end-2014, while maintaining current provisioning levels. At this point the portfolio would be unlikely to present a material risk to the bank's capitalisation and profitability. HBL's funding and liquidity profile is adequate for its rating level. It makes greater use of wholesale funding relative to most of its domestic peers, with a loan/ deposit ratio of 116% at FYE14, leaving it somewhat susceptible to investor confidence. In addition, HBL's on-balance sheet liquidity is lower than domestic peers. This risk is partly offset by HBL's shorter duration loan portfolio. Around 53% of HBL's liabilities maturing within 12 months are covered by maturing assets at FYE14. HBL's business model focuses on lending niche markets in which it has a leading market share. As a result, HBL generates a stronger net interest margin than peers despite the riskier lending profile. Fitch expects HBL's core asset quality to remain sound, benefiting from strengthened underwriting standards and good economic conditions. In addition, HBL's capital ratios are adequate relative to its risks.

RATING SENSITIVITIES - IDRs AND VR HBL's IDRs and VR are sensitive to changes in its company profile and risk appetite. A weaker company profile - mainly reflected in its business model and franchise, could impact the bank's earnings performance and could lead to a change in risk appetite, placing negative pressure on HBL's asset quality and/or capital, funding and liquidity positions. Positive rating action is unlikely in the short- to medium-term.

[vorno]

...Still "well positioned" although I am holding myself "at the ready" for your, and other sharetraders' reports on Friday's agm.

Now I must be missing something (either that or I can't read) - The AGM notice that went out mentioned that it was important to RSVP, however it didn't say how they want to receive the notifications of interest!

[percy]

Now I must be missing something (either that or I can't read) - The AGM notice that went out mentioned that it was important to RSVP, however it didn't say how they want to receive the notifications of interest!

Just make sure you attend it!!

[winner69]

ps.I just love HNZ's presentations.Tell what they are going to do,and they do it.Simple!

Love the way you keep reminding me they tell what they are going to do, and they do it.

They have said a few things they are going to do in FY15. And to date guidance says they are not going to do it.

Guidance of $42m-$45m is a marginal increase in EPS. They said Seniors buy was to be EPS accretive. Fail if guidance is all they achieve in FY15

Guidance of $42m-$45m will be a ROE <10%. They say they will increase ROE. Another fail if guidance is all they achieve in FY15.

Might need to financial engineering to achieve a higher ROE. A cop out if this is necessary. Jeff did say preferred way was to increase earnings. Guidance achieved and another fail.

Achieving what they say they will do. Percy, that means doing better than $42m-$45m in FY15

Hope ASM is more than just a review of FY14

[percy]

Having being fortunate to have attended previous AGMs,I can confirm they continue to achieve what they say they will do.!
Always have.!
Another rating upgrade is just another "run on the board".
I look forward to reading the AGM presentations, and commentary/reports from Sharetraders who attend the meeting.
Any further profit guidance will be of interest.

[winner69]

Hope it wasn't too boring Roger

The only decent slide was Slide 19 but you and I already knew that

Spose the words were if we increase ROE and we educate the market about how good we are we might get rerated ..... now there is a challenge for Jeff

[kizame]

Hope it wasn't too boring Roger

The only decent slide was Slide 19 but you and I already knew that

Spose the words were if we increase ROE and we educate the market about how good we are we might get rerated ..... now there is a challenge for Jeff

You seem to be a bit negative on this company winner, I like the bit about growth through aquisitions(and new product developement) for the full year of 2015,makes me think things are in the pipeline already.

[winner69]

You seem to be a bit negative on this company winner, I like the bit about growth through aquisitions(and new product developement) for the full year of 2015,makes me think things are in the pipeline already.

Only negative because $42m-$45m earnings is not performing to potential. As long as they stick to that guidance I will have doubts as to whether rhetoric will turn into reality.

On the other hand they maybe not being totally transparent and reality is $47m-$49m, performing to potential that is.

Every year HNZ make more in H2 than H1 .....and first quarter of $11m in that context does not equate with $42m-$45m FY guidance

Look forward to hearing what Roger says about Slide 19. Obviously some hidden message.

Still grumpy but still holding, and hoping $1.30 by June next year happens.

[percy]

Just read the agm presentations.
I am one very happy shareholder, and having built such a solid foundation Heartland's future is secure.In fact it looks very bright to me.!

[janner]

Having being fortunate to have attended previous AGMs,I can confirm they continue to achieve what they say they will do.!
Always have.!
Another rating upgrade is just another "run on the board".
I look forward to reading the AGM presentations, and commentary/reports from Sharetraders who attend the meeting.
Any further profit guidance will be of interest.

For percy !!..

Regrets, I've had a few;
But then again, too few to mention.
I did what I had to do
And saw it through without exemption.

I planned each charted course;
Each careful step along the byway,
And more, much more than this,
I did it my way.

You were correct.. I sold a third.. :-(((

Over weight... :-)))

Been re-purchasing ever since

In a small way..

My WAAAYYY !!.. :-))