HGH - Heartland Group Holdings

[percy]

Though these days from a reputational point of view being a bank is often a liability

Even in this part of the world

And from a financial point of view,as Warren Buffett said;
"Only when the tide goes out do you discover who's been swimming naked."
A lot of very low tides in Aussie recently?...lol.

[K1W1G0LD]

Looks like HBL has gone into hibernation for the winter, bit like watching paint dry waiting for the shareprice to pickup. Unlike all the excitement over at AIR!

[winner69]

Most of those nasty Aussie owned banks have reported lower NIMs (net interest margin) from their NZ operations. A competitive market being the most quoted reason

Just as well Heartland with their niche positions wont be suffering the same fate. A lot of their growth coming from the higher margin (niche positions) segments i reckon.

Must be making more than $55m this year but like BNZ Heartland probably will take a 'proactive approach to provisioning' to keep earnings down to just a reasonably acceptable level

[janner]

Most of those nasty Aussie owned banks have reported lower NIMs (net interest margin) from their NZ operations. A competitive market being the most quoted reason

Just as well Heartland with their niche positions wont be suffering the same fate. A lot of their growth coming from the higher margin (niche positions) segments i reckon.

Must be making more than $55m this year but like BNZ Heartland probably will take a 'proactive approach to provisioning' to keep earnings down to just a reasonably acceptable level

Always the glass three-quarters full, eh!. w69..

I think you are correct.. :-))

[kizame]

winner69 is very optimistic at the mo,in fact too optimistic as they come in on guidence,they have prudent management so over guidence I think would tell you that the extra earnings would be a surprise,I think that a surprise being positive or otherwise would say they havn't got a grasp of whats happening. Just my opinion you know.

[percy]

We should be able to see how HBL are tracking later this month, when they announce their 3rd quarter disclosure statement for the nine months ending 31/3/2016.
Still no judgement in the MTF Sportzone case.Must be due/overdue.

[Beagle]

We should be able to see how HBL are tracking later this month, when they announce their 3rd quarter disclosure statement for the nine months ending 31/3/2016.
Still no judgement in the MTF Sportzone case.Must be due/overdue.

I did warn you folks months ago those supreme court judges would take their time. Personally I think ditching the Privvy Council was a mistake, gives a useful counter influence to judges that can sometimes get myopic vision based on N.Z. centric factors.

Anyway...as many will have noticed, most of the Australian banks recently reporting have been ramping up provisioning for bad and doubtful debts because of the protracted downturn in dairy. By way of example
Extract from NBR regarding BNZ

BNZ’s statutory net profit in the six months fell 10.2% to $451 million, largely because its charges for bad loans rose to $79 million from $47 million in the previous first half, although operating expenses also rose 2.3%. The big jump in bad loan charges was mainly due to BNZ’s increased collective provisions for dairy lending.

Up to people to decide for themselves if HBL can swim against the outgoing tide this sector exposure represents, effectively or not.

[RTM]

I know Turners is not a bank, however I thought their result was encouraging for Heartland.

[winner69]

Even though in a short term uptrend the year chart still seems to heading from the top left corner to the bottom left corner

Below 200MA and 100MA not a good sign either

Think best strategy is to hold and hope like hell somebody takes them over soon at a huge premium. (Only way to get to 160 by xmas nextbigthing)

[winner69]

Respected Massey banking expert David Tripe says current low dairy prices are probably the new norm - staying low for longer than most expect