HGH - Heartland Group Holdings

[percy]

Thanks Percy for a good summary. Was reading NBR article on HBL meeting and they say HBL sees future growth with millennials and residential mortgages. The latter was a surprise to me. Is this the case or is NBR confusing it with reverse mortgages ?

Future growth is millennials,therefore digital porducts via phones/online channels.
Yes they are confusing residential with reserve mortgages.

[Joshuatree]

"reserve mortgages". is that like getting a mortgage to buy a Reserve Penfolds Grange 2010 $700 - Reviewed Classic, Great Grange‎

Thanks percy for sharing.

[beetills]

Interest .co.nz reporting that ANZ are in final negotiations with a chineses firm HNA to sell UDC.
If true what next for HBL

[winner69]

"reserve mortgages". is that like getting a mortgage to buy a Reserve Penfolds Grange 2010 $700 - Reviewed Classic, Great Grange‎

Thanks percy for sharing.

I got given a bottle of that stuff a while ago

Couldn't bring myself to drink it (I could see my parents looking down on me and frowning at such extravagances) so I gave it away

Keep the nice wooden box though - quite useful

[percy]

Interest .co.nz reporting that ANZ are in final negotiations with a chineses firm HNA to sell UDC.
If true what next for HBL

I expect it is true,and a number of things will most probably happen.
1] A lot of UDC staff will want to join Heartland.
2] Some UDC customers will move to Heartland bank.
3] Heartland will most probably do a bond issue to help fund their strong organic growth.
What will be of interest will be the price/ratios ANZ sell UDC for.

[ziggy415]

Interest .co.nz reporting that ANZ are in final negotiations with a chineses firm HNA to sell UDC.
If true what next for HBL

if udc is good fit for hbl....does that make hbl a good fit hna.......Percy...$3 is my target but its going to be my retirement day....so no takeover offers from the chinese just yet plz

[percy]

if udc is good fit for hbl....does that make hbl a good fit hna.......Percy...$3 is my target but its going to be my retirement day....so no takeover offers from the chinese just yet plz

Great knowing you will be able to retire in under 5 years time.
$3 in three years could be on.!!!..lol.
And yes UDC valuations may help HBL's sp get to your $3 target quicker.!

[ziggy415]

Future growth is millennials,therefore digital porducts via phones/online channels.
Yes they are confusing residential with reserve mortgages.

how do you value reverse mortgages....if hbl sell say 20 million of reverse mortgages this year and no payments are due till recipients pass away and no recipients die for 3 years hbl get no return on their investment for 3 years......do returns start to snowball the longer these loans have been issued.....have to admit these type of loans have been taken up by more people than i ever thought would....must be more asset rich cash poor people out there than i thought......if an Auckland granny had sold her house 10 years ago she probably missed out on $500'000 of capital gains but a revers mortgage would cost her estate a fith of that and she stays in her house so it makes sense i guess

[777]

how do you value reverse mortgages....if hbl sell say 20 million of reverse mortgages this year and no payments are due till recipients pass away and no recipients die for 3 years hbl get no return on their investment for 3 years......do returns start to snowball the longer these loans have been issued.....have to admit these type of loans have been taken up by more people than i ever thought would....must be more asset rich cash poor people out there than i thought......if an Auckland granny had sold her house 10 years ago she probably missed out on $500'000 of capital gains but a revers mortgage would cost her estate a fith of that and she stays in her house so it makes sense i guess

Return is the interest accruing on the reverse mortgage. Compounding as well.

[winner69]

Percy's mate Simon leaving next March - a new CFO hopefully on board my then

Done a sterling job that Simon. Maybe Percy or somebody else on here should organise a small collection for Simon and give him a parting gift. i'll throw in 10 bucks if somebody organises it and writes the nice letter.

Also in the announcement -

Earlier this year we launched the first of our online origination platforms, Open for Business. We are currently developing platforms to originate livestock loans, deposits, residential mortgages as well as intermediary specific solutions. We see the emerging technology for digital platforms giving us the opportunity to be not only the fastest at originating loans but also the cheapest. This is just the beginning of our digital transformation and in appointing a new CFO we will seek a candidate who has the proven ability to lead in an environment characterised by disruption and innovation..

Jeez - a farmer being able to borrow more without getting off the quad bike. That's progress

Also hope these initiatives enable us mere mortals to do elementary banking transactions on a mobile device one day