HGH - Heartland Group Holdings

[Snow Leopard]

HNZ has low exposure to dairying.
HNZ has low exposure to Auckland property market.[the odd REL]
HNZ has no exposure to the Australian mining sector.
HNZ has no exposure to the weak Australian manufacturing sector.
HNZ has no exposure to the weak Australian retail sector.
HNZ has no exposure to the Asian Banking sector.
If HNZ has any exposure to Australian roperty sector it is only via REL loans where the security is first rate.
HNZ has no exposure to the volatile wholesale market for funding.
HNZ does no need to raise more capital,in fact they have excess.
Yet the market will react as though HNZ alone are totally at risk with the dairy sector.

HNZ is a tiny little bank:

ANZ $134B of liabilities;
ASB $71B of liabilities;
HNZ $3B of liabilities.


Best Wishes
Paper Tiger

[percy]

Good post Percy.

I would like to point out however HNZ is exposed to one thing - upside potential of the shareprice. Quite a worry.

One I am quiet comfortable, living with.
,In fact you could say "I am "comfortably positioned."!!!!

[percy]

PT's question.
Do we actually lend anything to anybody or borrow anything from anyone?
Answer;Yes and do it well.!

[SCOTTY]

HNZ has low exposure to dairying.
HNZ has low exposure to Auckland property market.[the odd REL]
HNZ has no exposure to the Australian mining sector.
HNZ has no exposure to the weak Australian manufacturing sector.
HNZ has no exposure to the weak Australian retail sector.
HNZ has no exposure to the Asian Banking sector.
If HNZ has any exposure to Australian roperty sector it is only via REL loans where the security is first rate.
HNZ has no exposure to the volatile wholesale market for funding.
HNZ does no need to raise more capital,in fact they have excess.
Yet the market will react as though HNZ alone are totally at risk with the dairy sector.

and HNZ has no exposure to ROGER �� (post 6676)

[winner69]

Chris Lee does another rave on Heartland
http://www.chrislee.co.nz/taking-stock

But he does say - I have never believed in banks returning capital. My view is they can never have too much capital and should accept lower returns on equity as the offset of greater balance sheet strength.

I agree with Mr Lee

[percy]

I think it is time we remembered Kerry Packer.Kerry liked money to be earning its way.Kerry had just brought another business and was talking to it's CFO.
"What's this money hidden in the accounts"?
"It's our rainy day fund."
"Look outside son,it's p.ssing down."!!!!!!!!!!!!!!!!!!!!!!!

[winner69]

I think it is time we remembered Kerry Packer.Kerry liked money to be earning its way.Kerry had just brought another business and was talking to it's CFO.
"What's this money hidden in the accounts"?
"It's our rainy day fund."
"Look outside son,it's p.ssing down."!!!!!!!!!!!!!!!!!!!!!!!

No, no Percy. What you suggesting must be wrong

Heartland would never do such things like 'hiding things' in their accounts. Their strong governance wouldn't allow such activity would it.

[winner69]

Man from MTF on the radio today says HEARTLAND been doing due diligence for the last few weeks.

[winner69]

With apologies to those whose posts did not warrant deletion but

Let us start today again and do so with good grace:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11546646

We need to keep pace with developments as to how dairy farmers are coping. It is very relevant to Heartland

If things do get bad Heartland will have increased bad debts which will affect profitability. Even a couple of million is significant relative to a $50m earnings base

Heartland themselves did say this re Rural a few months ago: low impairments for FY15 and include adequate provisions for the dairy sector- expect higher level of impairments for FY16

[stoploss]

Always good to keep abreast of new developments in the sector . However the RBNZ obviously sees the concentration of risk with the big 5 , hence the stress test .
I note HNZ was left out of this .

http://www.nbr.co.nz/article/reserve...loans-b-181416