HGH - Heartland Group Holdings

[winner69]

Not next year's,but looking closer at this year's;
"Whether full year NPAT will end up at top-end or above guidance range will depend on 4Q impairment provisions [so far benign]".
They also noted the improved asset quality.

"So far benign" ......using the words 'so far' suggests that provisions might not be so benign in the future

What are some antonyms of benign?

[percy]

"So far benign" ......using the words 'so far' suggests that provisions might not be so benign in the future

What are some antonyms of benign?

I rather think the medical definitions are most appropriate;
Malignant;harmful.
Benign;harmless.
4Q will be of interest to diagnose.?

[winner69]

Those impairment numbers show nearly 5% of rural loans are impaired. If dairy is the problem it could suggest about 10% of dairy loans are impaired.

(Read in context that over all receivables impairments are about 1%)

[winner69]

Re: Dairy, I remember at debt briefing last year the CFO when asked about the dairy risk compared to car loans said something along the lines of "well we can always shoot the cows", got a decent chuckle out of the audience

They wouldn't would they - if dairy loans turn to custard some might say 'well we can shoot the CFO'

[Hectorplains]

They wouldn't would they - if dairy loans turn to custard some might say 'well we can shoot the CFO'

...or let them eat custard?

How did you extrapolate from 5% total rural loan impairment that 10% of dairy loans are impaired, W69?

[winner69]

Rural loans are ~$500m (they report rural two different ways but its about that) and have said a while ago dairy loans are ~$240m. So if dairy is all/most of the problem thats where I get the 10% from.

Impairment doesn't mean bad - in Heartland terms it is overdue and manageable (?)

(Might be completely wrong with my assumptions, that's why i used lot of ifs)

[Hectorplains]

Rural loans are ~$500m (they report rural two different ways but its about that) and have said a while ago dairy loans are ~$240m. So if dairy is all/most of the problem thats where I get the 10% from.

Impairment doesn't mean bad - in Heartland terms it is overdue and manageable (?)

(Might be completely wrong with my assumptions, that's why i used lot of ifs)

Cheers w69. Appreciate the explanation. Nice deduction skills!

[percy]

Those impairment numbers show nearly 5% of rural loans are impaired. If dairy is the problem it could suggest about 10% of dairy loans are impaired.

(Read in context that over all receivables impairments are about 1%)

Makes a welcome change to see "Read in context" on this thread.
Although not the latest report,any one who is interested to read how Heartland Bank compares "in context" with other banks in NZ should read KPMG's FIPS Quarterly.The last one available is December 2015,however it is a good place to start.
Google FIPS Quarterly;December 2015 KPMG NZ

[winner69]

Makes a welcome change to see "Read in context" on this thread.
Although not the latest report,any one who is interested to read how Heartland Bank compares "in context" with other banks in NZ should read KPMG's FIPS Quarterly.The last one available is December 2015,however it is a good place to start.
Google FIPS Quarterly;December 2015 KPMG NZ

Yes, those NIMs are impressive relative to the the real banks aren't they

Not really comparing apples to apples though are we percy - like de facto finance company dressed up as a bank, margins should be higher than real banks' margins.

Did you notice that impairments reduced Heartland margin by 0.27% points but sector (real banks) margins were reduced by only 0.11% points.

[percy]

Yes,MIMs are impressive.
Posters often forget HBL is "like a de facto finance company dressed up as a bank,margins should be higher than real banks' margins." The margins are a lot higher correct,and borrowing costs are lower than other finance company's.The the real point Heartland Bank is registered as a bank,and must comply with all the regulations,ratios and reporting The Reserve Bank of NZ require.{added safety for depositors and shareholders}.
Impairment margin will offcourse will be higher,yet "in context" of loan book growth and improved cost ratios they remain acceptable.That said, the next quarter's impairments will mean the difference between HBL achieving top or lower end of NPAT guidance.[Anyalysts are expecting Q4 to be higher,but acceptable].

ps.Not sure whether it was you W69,but whoever recommended the book "The Money Makers" by Eric Rauchway isbn 9780465049691,How Roosevelt and Keynes ended the depression,defeated Fascism,and securd a prosperous peace,a big thank you.ChCh libraries brought it in, and I have just started to read it.Looks as though it is going to be a great read.