Forget the noise and work out your current dividend yield on your average HBL cost price,.
Then it is easy to see who the cunning one is.!!
No wonder you sleep well.
ps.Should you think the dividend will not be increased sell.
Should you think HBL have the capacity to keep increasing their fully imputated divie,sit back and enjoy it.I am..lol.
Like you Percy I’m obviously not cunning but very happy. The bulk of my HBL were purchased @ 58c and with the drip obviously my average price is now considerably lower. I certainly don’t have any tax liability by constantly buying and selling either. Boring I know
I accept that it makes a grand headline, but if you look a little deeper, you see that while
finance receivables have risen by the numbers you've supplied, NIM is shrinking.
Working harder to to have earnings stand still, is no earnings growth.
Further to the "acquire PGW story"; for another $20m you could expand your customer base by
folding ALF into 'Heartland Rural' and have an excellent starting point to build a decent rural
services group. It could attract significant investor interest because it is exactly to kind of listed
rural focused opportunity that has been lacking in NZ. Done well it might just eat UDC's lunch
in rural financing and services.
Disc: former HBL holder. Jumped recently.
The MIM is still over twice the sector average.
This very slight reduction in MIM is caused by product mix.The margin on RELs ,although a lot higher than standard mortgages,is lower than the likes of motor vehicle loans.HBL has seen its Australian REL business grow an incredible 27%.Great business for HBL.
.
The MIM is still over twice the sector average.
This very slight reduction in MIM is caused by product mix.The margin on RELs ,although a lot higher than standard mortgages,is lower than the likes of motor vehicle loans.HBL has seen its Australian REL business grow an incredible 27%.Great business for HBL.u
.
One of the advantages of Heartland masquerading as a Bank is they compare their NIM to a sector average which predominately comprises the big hour.
Interestingly Heartlands NIM is significantly less than that achieved by non-bank financial institutions (KPMG say 5.68% in 2016).
Some would say that this a better ‘benchmark’ as their lending profile mirrors more a non-bank financial institution (like UDC etc) rather than comparing to banks with their large % of home mortgages.
Heartland NIM lower than UDC’s last time I looked (and MTF as well)
Just saying
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
One of the advantages of Heartland masquerading as a Bank is they compare their NIM to a sector average which predominately comprises the big hour.
Interestingly Heartlands NIM is significantly less than that achieved by non-bank financial institutions (KPMG say 5.68% in 2016).
Some would say that this a better ‘benchmark’ as their lending profile mirrors more a non-bank financial institution (like UDC etc) rather than comparing to banks with their large % of home mortgages.
Heartland NIM lower than UDC’s last time I looked (and MTF as well)
Just saying
Yes buying UDC would improve HBL's MIM.!!..Bring it on.TRA appear to have a good working arrangement,as well as a blocking stake in MTF.
I think you have a good point about comparing HBL's MIM to finance company's,then again that would be wrong, because they are a registered bank.
Maybe somewhere between the two ?
In which case HBL's MIM is closer to finance companies than banks.
All is well !..lol.
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