HGH - Heartland Group Holdings

[winner69]

So which banks?

Provide verifiable figures for at least two of them.

Best Wishes
Paper Tiger

Paper Tiger grumpy? - well, just being Paper Tiger again I suppose

In return for yesterdays comment about winner69 - couldn't resist

[Beagle]

BNZ reported this a month or so ago

The bank's charge to provide for bad and doubtful debts surged $42 million, or 91.3%, to $88 million. The rise was attributed to an increase in collective provision charges, mainly due to the outlook for the dairy industry.

http://www.interest.co.nz/business/7...-rise-expenses

Yeah that's part of what I was referring too, thanks for posting mate. Here's another article that quite explicitly expresses the forward view that loan provisioning is in for a huge increase if dairy stays low
http://www.interest.co.nz/rural-news...xtended-period
Those obsessed with life in the rear view mirror and who accept recent loan provisioning at face value can't see a problem whereas those who spend time trying to look around the corner ahead see trouble coming...two different perspectives. No telling people looking backwards they need to change their point of view I suppose... Must be that auditor training, like a beagle at the airport sniffing out problems ahead, (with apologies to Snoopy)

[stoploss]

Yeah that's part of what I was referring too, thanks for posting mate. Here's another article that quite explicitly expresses the forward view that loan provisioning is in for a huge increase if dairy stays low
http://www.interest.co.nz/rural-news...xtended-period
Those obsessed with life in the rear view mirror and who accept recent loan provisioning at face value can't see a problem whereas those who spend time trying to look around the corner ahead see trouble coming...two different perspectives. No telling people looking backwards they need to change their point of view I suppose... Must be that auditor training, like a beagle at the airport sniffing out problems ahead, (with apologies to Snoopy)

I think Heartland have had a good look at the loans and made the right provisioning .
Dairy on the up , all good ....
http://www.nzherald.co.nz/business/n...ectid=11553380

[Beagle]

http://www.interest.co.nz/rural-news...-enough-enable

Maybe not enough to enable Fonterra to meet its $4.60 forecast and that's still well adrift of the mid five dollar range experts seem to agree is what's necessary for farmers to break even.

How many more years can banks keep supporting loss making dairy farmers by lending them more and more money to stay afloat ? (Good question to ask your directors at the forthcoming annual meeting).

[stoploss]

http://www.interest.co.nz/rural-news...-enough-enable

Maybe not enough to enable Fonterra to meet its $4.60 forecast and that's still well adrift of the mid five dollar range experts seem to agree is what's necessary for farmers to break even.

How many more years can banks keep supporting loss making dairy farmers by lending them more and more money to stay afloat ? (Good question to ask your directors at the forthcoming annual meeting).

That guy flip flops a lot , just remember they invented economists to make weather forecasters look good.

http://www.interest.co.nz/rural-news...5-less-urgency

[winner69]

Paper Tiger the other day
Interestingly 90+ day overdue loans on rural as gone from $17,904K to $11,704 in the last three months, possibly as a result of some/many them being reclassified given that Heartland are supporting dairy in these difficult times.

Ah so - I get it know

You take an overdue/problem loan and repackage it up as something new under the guise of support - it becomes a 'new loan' so no longer overdue (even though the borrower still owes heaps)

Tricky

[Beagle]

That guy flip flops a lot , just remember they invented economists to make weather forecasters look good.

http://www.interest.co.nz/rural-news...5-less-urgency

To be fair that was some time back after four successive GDT gains and many were starting to feel more optimistic. Reality has bitten since and we are still far short of what's required for farmers to break even.

Ah so - I get it now

You take an overdue/problem loan and repackage it up as something new under the guise of support - it becomes a 'new loan' so no longer overdue (even though the borrower still owes heaps)

Tricky

I'm sure you know finance companies and banks have been using this creative accounting method since Adam was a boy and its most especially useful during harsh times like the recent GFC. Good of you to point out to others though and as you know this earns them nice fat refinancing and admin fees too so makes the books look better in more ways than one...until such time as they can't repay their loan that is. Harmoney clip the ticket for (IIRC), a hefty 6% fee on their refinancing, perhaps something of a conflict of interest with investors looking for easier loan admin and loans running their full term ?

[beetills]

Ben Russell C.E.O of Rabobank to join HEARTLAND according to Interest .co.nz.Head of Rural Banking

[Joshuatree]

Good spotting beetlls

Rabobank NZ CEO departs for Heartland Bank

[percy]

Heartland seem to be able to attract top talent.
Not just talented investors.!!!!.lol.