Teaching is an underrated profession
Quote:
Originally Posted by
Snoopy
There are 308.703m HNZ shares on issue as far as I can work out.
The total number of ""Monitor+" loans on the books add to $265.683m. That works out at 86cps. So assuming all of those loans are as bad as Heartland assume, Heartlands equity will be totally wiped out (assuming NTA of 86c now). That means the sky is the limit as far as future ROE is concerned. There is potential here for Heartland to go to the top of the ROE class!
SNOOPY
I give up, it has been totally wasted exercise trying to educate you on this sort of stuff.
If I set a test with the one question "What is the value of a NZ $10 bank note" I am not sure you would pass.
So assuming all of those loans are as bad as Heartland assume then they will 'lose' the $15,961,000 that they have "Provisioned for collectively impaired assets" (2013 Full Year Financial Statements 37(d) 1st table), and which is already written out of the assets.
Paper Tiger
...but only people make you cry
As I said: I have given up.
Never has the adage "You can not teach an old dog new tricks" been more true.
Best Wishes
Paper Tiger
Customer Concentration Risk FY2013
Quote:
Originally Posted by
Snoopy
The half year report last year did not provide the same level of disclosure as the full year report. This has proved to be the case again in HY2013.
Under note 12 and as of 31st December 2012, the percentage of deposits from the Canterbury region has reduced from 42% six months previously down to 36%. Overall I see this as a good thing, even if some market share in Canterbury must continue to be sacrificed to improve the overall term deposit risk profile.
Note 17c re-emphasises that the credit provision as reached with RECL (the real estate credit limit mangement agreement) has been fully utilised. This in turn means any further writedowns will directly hit the HNZ balance sheet.
I get the impression that rebalancing the account risk is still a work in progress.
Significant changes have occurred over the past year. Canterbury loans are down quite a bit from $584m at YE2012 to $532m YE2013 (note 36b YE2013). That should help with the geographic re-balancing of the loan portfolio. It all ties up with the equivalent figures listed in the annual report last year (note 32biii AR2012).
However some of the other figures don't tally so well. Auckland region loans have gone up from $654m (YE2012) to $706m (YE2013) as listed in the 2013 accounts. Yet if you go back to the accounts declared in AR2012, the total Auckland business was only $548m. That is a discrepancy of over $100m. Very strange, yet the Canterbury figures are in agreement between the two reports.
Also noted is a big jump in Heartland loans to the Wellington region. From $120m to $220m (YE2013 note 36b). This gain is leaving aside the mysterious gain from the $102 listed for the Wellington region in the FY2012 report.
I think all of these mismatches may have something to do with the RECL (Real Estate Credit Limited) agreement that was terminated during the year. Suddenly some $200m more loans in total came back on the books. Either that or the management has decided that Heartland really does mean Auckland and Wellington.
The good thing about this is that regional balance is looking better than last year.
SNOOPY