HGH - Heartland Group Holdings

[winner69]

Another idea

Heartland should go into pawn broking

Acquire Cash Converters?

[K1W1G0LD]

C'mon w69 , stop harassing poor old Percy...................like Heartland he's only doing his best.

[vorno]

Another idea

Heartland should go into pawn broking

Acquire Cash Converters?

...I do believe you are speaking in-jest good sir!

[iceman]

C'mon w69 , stop harassing poor old Percy...................like Heartland he's only doing his best.

No need to worry about our friend. He remains well positioned

[noodles]

This sort of Holden finance, also available on 2014 model run-out HSV's at 2% is known as non-recourse finance. Yes Holden and HSV are shifting slow moving product by effectively discounting tired old product and using that discount to fund cheap / zero interest finance...the customer thinks they're getting product interest free. There is no recourse against Holden N.Z. if customers default on cars they sell to people on no deposit nothing to pay till 2016. Most people will know new vehicles depreciate by ~ 20% the moment you drive out of the showroom and seeing as customers are paying nothing till January 2016 by then the customer is probably 30-35% underwater with their vehicle acquisition seeing as interest really is accruing throughout the loan term.

One thing I learned for sure during the GFC and with all the finance company debacles is if customers have no "skin in the game" in terms of no deposit the default rate is significantly higher. Factor in that they are specially marketing to people of the "calibre" that a "no wallet no worries" marketing campaign would appeal, and I think intelligent prudent business minded people can draw their own conclusions as to whether this is prudent lending and what the likely default rate will be down the road.

Customers will have skin in the game. I'm sure HNZ won't be lending to people with poor credit records. Thus, there credit score is their skin.

Wasn't the GFC mostly around property development lending?

Personally, I'm happy with both their Holden and iFinance initiatives. It means eps growth is not solely reliant on HER.

[percy]

This sort of Holden finance, also available on 2014 model run-out HSV's at 2% is known as non-recourse finance. Yes Holden and HSV are shifting slow moving product by effectively discounting tired old product and using that discount to fund cheap / zero interest finance...the customer thinks they're getting product interest free. There is no recourse against Holden N.Z. if customers default on cars they sell to people on no deposit nothing to pay till 2016. Most people will know new vehicles depreciate by ~ 20% the moment you drive out of the showroom and seeing as customers are paying nothing till January 2016 by then the customer is probably 30-35% underwater with their vehicle acquisition seeing as interest really is accruing throughout the loan term.

One thing I learned for sure during the GFC and with all the finance company debacles is if customers have no "skin in the game" in terms of no deposit the default rate is significantly higher. Factor in that they are specially marketing to people of the "calibre" that a "no wallet no worries" marketing campaign would appeal, and I think intelligent prudent business minded people can draw their own conclusions as to whether this is prudent lending and what the likely default rate will be down the road.

Yet when I spoke to Craig Stephen, when he was with Heartland, he told me they had less trouble with motor vechicle finance than house mortgages.Car is needed to get to work.No car,no job!

[Beagle]

Customers will have skin in the game. I'm sure HNZ won't be lending to people with poor credit records. Thus, there credit score is their skin.

Wasn't the GFC mostly around property development lending?

Personally, I'm happy with both their Holden and iFinance initiatives. It means eps growth is not solely reliant on HER.

Yet when I spoke to Craig Stephen, when he was with Heartland, he told me they had less trouble with motor vechicle finance than house mortgages.Car is needed to get to work.No car,no job!

Many of the problems with second and third tier lenders were around identity fraud and valuation fraud, known as hydraulicing in the motor vehicle industry. Jack the theoretical price of the vehicle sky high and give the illusion the customer paid a proper deposit. This is often run in tandem with minimum trade-in guarantee's e.g. $3,000 regardsless of condition provided you can drive it onto the yard. Skin in the game is genuine deposit money and in my opinion from what I have seen there is no substitute for genuine skin in the game.

A good credit record is something that can go bad quite easily in adverse circumstances. To the best of my knowledge I cannot recall this sort of no wallet no worries buying cars on no deposit and no repayments for eight months before. Anyway I've said enough, I'm not trying to talk this thing down as I still have a 10% portfolio allocation at this stage...just calling this as I see it and people can make their own minds up about whether this is prudent lending or something else.

Percy, mate you can flip that thing around the other way, no job, no need for a car. Commuting in Auckland is a nightmare in a car anyway and young people are mobile and are usually happy to shift near a transport hub.

[axe]

https://www.nzx.com/companies/HNZ/announcements/264616

Heartland Bank Releases Third Quarter Disclosure Statement

9:35am, 21 May 2015 | QUARTER

NZX Release
Heartland Bank Releases Disclosure Statement for Third Quarter
21 May 2015
Heartland Bank Limited (Heartland Bank), the banking subsidiary of Heartland New Zealand Limited (Heartland) (NZX: HNZ), today released its disclosure statement for the nine months ended 31 March 2015 in accordance with the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014.
Unaudited net profit after tax (NPAT) for Heartland Bank was $30.9m for the nine months ended 31 March 2015. Unaudited NPAT for Heartland (parent company) over the same period was $36.1m. The difference in NPAT is primarily due to the portion of Heartland’s reverse mortgage book that is held outside Heartland Bank.

Heartland expects its NPAT for the year ended 30 June 2015 to be at the upper end of the previously advised NPAT range of $46m - $48m.
- Ends -

[winner69]

Q1 was $11.0m Q2 was $12.5 and Q3 looks like $12.6m and Q4 $11.5m if top end of guidance meet

So if this is true "Heartland expects its NPAT for the year ended 30 June 2015 to be at the upper end of the previously advised NPAT range of $46m - $48m." then profit growth momentum has come to an end and earnings are stagnating around $12m plus or minus a bit every quarter. that seems our lot.

Things not looking too bright ...or else some some subtle earning management taking place,

[winner69]

https://www.nzx.com/companies/HNZ/announcements/264616

Heartland Bank Releases Third Quarter Disclosure Statement

9:35am, 21 May 2015 | QUARTER

NZX Release
Heartland Bank Releases Disclosure Statement for Third Quarter
21 May 2015
Heartland Bank Limited (Heartland Bank), the banking subsidiary of Heartland New Zealand Limited (Heartland) (NZX: HNZ), today released its disclosure statement for the nine months ended 31 March 2015 in accordance with the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014.
Unaudited net profit after tax (NPAT) for Heartland Bank was $30.9m for the nine months ended 31 March 2015. Unaudited NPAT for Heartland (parent company) over the same period was $36.1m. The difference in NPAT is primarily due to the portion of Heartland’s reverse mortgage book that is held outside Heartland Bank.

Heartland expects its NPAT for the year ended 30 June 2015 to be at the upper end of the previously advised NPAT range of $46m - $48m.
- Ends -

Bloody disappointing. Only decent thing is that the her stuff is making money

But percy will be rapt ....they continue to do as they say.

Well done heartland, if that's your full year expectations this year then not one would what one would expect from the previous hype.

Heartland at best seems to be have settled into being a steady as she goes finance company and will be valued accordingly.

That $1.60 plus shareprice is now years away

I was going to put something in Maori but my Maori mate said even you white guys might be offended so left it out.