HGH - Heartland Group Holdings

[Harvey Specter]

From this announcement HNZ has increased their investment in Harmoney to maintain 10% holding, HNZ "Following the capital raise, Heartland will have invested approximately $3.5m in Harmoney which mean "current implied value of Heartland’s investment in Harmoney is in excess of $5.0m".

My maths are probably off but it looks like they invested an extra $800k now to maintain their 10% which means their original investment was ~$2.6m valuing it at $26m. nice 60% increase in less than 6 months.

[bunter]

"Based on the investment made by Trade Me, the current implied value of Heartland’s investment in Harmoney is in excess of $5.0m. Following the capital raise, Heartland will have invested approximately $3.5m in Harmoney"

5.2m actually.

So there's a 1.7m paper profit - I wonder if HNZ will bring this to account?

[Harvey Specter]

"Based on the investment made by Trade Me, the current implied value of Heartland’s investment in Harmoney is in excess of $5.0m. Following the capital raise, Heartland will have invested approximately $3.5m in Harmoney"

5.2m actually.

So there's a 1.7m paper profit - I wonder if HNZ will bring this to account?

Not under IFRS I dont think. They have to take an impairment if it goes down, otherwise it gets held at cost.

[Toasty]

Now that I own Harmoney I thought I had better support it. Placed first $500 test investments yesterday. Ridiculously easy to set up and a nice easy interface to allow you to assess the loans. Disturbingly like paying a game actually. It would be quite easy to get absorbed in the numbers and forget that you are committing real money that will be out in the market for 36 to 60 months.

Feels nice to add a slightly different income (hopefully) stream to the work, share and property pile. Will just build this up slowly as results allow.

Disc: happy HNZ holder and DRP receiver....

[noodles]

RBNZ Reduces Regulatory Capital Requirements for Heartland


https://www.nzx.com/companies/HNZ/announcements/259739

This can only be seen as positive. Allows the company to consider acquisitions/buybacks/special dividends without having to raise capital.

However, that does not seem to be the intention from management...
"Although Heartland Bank holds capital in excess of regulatory minimums, there is no current intention to reduce the amount of capital held at the bank level."

[forest]

8:35am, 14 Jan 2015 | GENERAL
NZX Release

RBNZ Reduces Regulatory Capital Requirements for Heartland Bank

14 January 2015

Heartland New Zealand Limited (NZX: HNZ) advises that the Reserve Bank of New Zealand has determined to reduce the regulatory capital requirements for HNZ subsidiary, Heartland Bank Limited (Heartland Bank) to be in line with those of the other New Zealand banks.

Heartland Bank was granted bank registration in December 2012 with its conditions of registration requiring it to maintain higher levels of regulatory capital than its bank peers. Heartland Bank’s conditions of registration will be amended on 31 January 2015 to reflect its new regulatory capital ratios being:

- Total capital ratio not less than 8%
- Tier 1 capital ratio not less than 6%
- Common equity tier 1 capital ratio not less than 4.5%
- Buffer ratio 2.5%

Although Heartland Bank holds capital in excess of regulatory minimums, there is no current intention to reduce the amount of capital held at the bank level.

- Ends -

For further information please contact:

Jeff Greenslade
Managing Director
Heartland New Zealand Limited
DDI 09 927 9149

[Harvey Specter]

RBNZ Reduces Regulatory Capital Requirements for Heartland


https://www.nzx.com/companies/HNZ/announcements/259739

This can only be seen as positive. Allows the company to consider acquisitions/buybacks/special dividends without having to raise capital.

However, that does not seem to be the intention from management...
"Although Heartland Bank holds capital in excess of regulatory minimums, there is no current intention to reduce the amount of capital held at the bank level."

I think this deserves a

BOOM!

Snoopy - This was one of your issues wasn't it. Consider it solved.

[dingoNZ]

Look at the market the offer at $1.13 has disappeared and the bid @ $1.12 become very heavy. I suspect we will see the price shift north today!

Disc: Happy holder

[Beagle]

RBNZ Reduces Regulatory Capital Requirements for Heartland


https://www.nzx.com/companies/HNZ/announcements/259739

This can only be seen as positive. Allows the company to consider acquisitions/buybacks/special dividends without having to raise capital.

However, that does not seem to be the intention from management...
"Although Heartland Bank holds capital in excess of regulatory minimums, there is no current intention to reduce the amount of capital held at the bank level."

I agree. Its nice to see a level playing field.

[winner69]

Does this bit Although Heartland Bank holds capital in excess of regulatory minimums, there is no current intention to reduce the amount of capital held at the bank level mean no financial engineering to get ROE up to 10%. In other words no buybacks/capital return

If so that's good