HGH - Heartland Group Holdings

[winner69]

Same slice. Bigger cake = happy Percy

But Percy wanted a bigger slice of a bigger pie ....and more icing as well

[percy]

Bigger cake,or bigger slice of existing cake,does not concern me.Just keep adding to the icing.The quality of the cake is improving all the time.
So any acquisition that is earnings accretive is fine with me.
Reduced Reserve Bank capital ratio means Heartland have the capacity to increase lending with their existing capital.This extra lending will help to increase HNZ's ROE ratio to 11% or more.
All this means Heartland are doing what they say they will do.More runs on the board will help HNZ share price even further, as the market becomes aware of their achievements.

[Beagle]

Explains the changes a little more thoroughly.
http://www.interest.co.nz/news/73562...line-other-ban

[bunter]

Generally the recent sharp fall in long term term deposit interest rates is very bullish for all company valuations, plus 15% IMO, and it's surprising there hasn't been more, um, interest in it here. Maybe if the papers report it.

Anyway - anyone have any thoughts on what low interest rates will do for HNZ profits specifically?

More client borrowing and higher profits maybe?

[Snoopy]

"no current intentions" but means they could fund an acquisition easier or just use the lower minimums to have a bigger headroom and reduce the risk of hitting them (which I think was Snoopys concern).

My main concern with Heartland has always been shortage of capital Harvey. The amount of capital that must be held as required by the reserve bank has gone down. So yes, I see that as a big change. It means the likelihood of a cash issue is significantly reduced.

Interestingly Geoff says he won't be returning capital to shareholders. So I guess that might be code for 'making an acquisition'? If he does so, a small capital raising could still be on the cards. But a small capital raising might be welcome by shareholders?

SNOOPY

[winner69]

Generally the recent sharp fall in long term term deposit interest rates is very bullish for all company valuations, plus 15% IMO, and it's surprising there hasn't been more, um, interest in it here. Maybe if the papers report it.

Anyway - anyone have any thoughts on what low intere bst rates will do for HNZ profits specifically?

More client borrowing and higher profits maybe?

Both positives and negatives but Heartland will do OK no matter what

Deposit rates were this low in late 2013 and 2014 was a great year for Heartland eh

Probably get even more yield hunters into the market which will help the shareprice. As Percy says its better to own the bank than put money in it. Sage advice that

You buying HNZ big time then bunter?

[winner69]

Heartland have hardly been chasing term deposits lately anyway ...probably have far too much cash already.

[Beagle]

Both positives and negatives but Heartland will do OK no matter what

Deposit rates were this low in late 2013 and 2014 was a great year for Heartland eh

Probably get even more yield hunters into the market which will help the shareprice. As Percy says its better to own the bank than put money in it. Sage advice that
You buying HNZ big time then bunter?

I call that being on the right side of the ledger My thoughts are that lower interest rates will prevail for considerably longer than anyone realistically anticipates, (it wouldn't surprise me in the slightest if we have very low interest rates for many, many years to come), and that will be assistive to HNZ's net interest margin.

[bunter]

Both positives and negatives but Heartland will do OK no matter what

Deposit rates were this low in late 2013 and 2014 was a great year for Heartland eh

You buying HNZ big time then bunter?

My second largest holding, double the average position size, but not buying now - not since April 14.

Current bunter-valuation is 1.88. Hmmm.

[percy]

It is with pleasure, I announce the new President of The Heartland Rampers R Us Society is Bunter.
On behalf of all HNZRRUs, may I congratulate Bunter,and look forward with anticipation to his forceful and profitable leadership.