Unfortunately,too true.
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Its just that the ASX has roughly 8 times more listings than the NZX. If their regulatory oversight and governance would be as bad as ours, they would need 8 defaulters for every CBL ...
And CBL is just the most recent example for NZX companies with apparent governance problems, they are certainly not alone - but don't get me started ...
One can argue that CBL was doing the right thing - it was trying to raise new capital and any disclosures about how shallow its reserves were would have led to a 'run' and collapse.
Any sympathy however disappeared after they made the unauthorised $55m payments to the offshore entities.
A fine debate that was too at that time. At the time HBL was growing its EPS faster than its Australian peer group so the theory then as espoused by this author was that a slight PE premium was fair and reasonable. The issue now is that with recent share issuance I don't see a superior rate of growth anymore so at least in my mind this begs the question of whether a PE premium is currently justified. Time will tell but I agree with posters above all this cloak and dagger stuff with RBNZ does not help confidence or transparency.
In a behind the paywall article on NBR today apparently the FMA knew about the RBNZ investigation into CBL from mid 2017. The only ones who didn't know about the unfolding fiasco were Joe public investors. How this is possibly acceptable in the context of continuous disclosure obligations of the NZX I have no idea ???? Perhaps there should have been a trading halt in August last year ?
Erosion of confidence in RBNZ's transparency will not help confidence in other companies they have a mandate to oversee which of course includes HBL.
Some people on this forum reckon we should all take great comfort from the fact that HBL has the oversight of RBNZ. How much comfort you really can now draw from that I have no idea.
Posted 22-02-2015.
Interestingly HBL's MIM has remained twice the Aussie Banks.Yes twice.
HBL funding model does not rely on European wholesale funds.
HBL exposure to Aussie residential property is via RELs, which are safer and have a better margin than normal mortgages.
HBL exposure to Aussie mining,and commercial property is nil.
HBL exposure to NZ housing market remains low.
HBL's equity ratio remains excellent.
HBL has good organic growth,mainly driven by digital products,and is stronger than Aussie banks.
HBL has a good record of paying increasing fully imputed dividends.
HBL's directors are major shareholders.The owner's eye.
Yes it has been a fun ride with Heartland.Plenty of opportunities for every one to buy in.
With increasing fully imputed divies, us long term shareholders are certainly being well rewarded.
The next five years should be even more rewarding for those of us who enjoy fat divies.
May be the share price will be over $5.00.?
International Women’s Day not being celebrated as it should be at Heartland. Hopefully a reminder to the Board and Leadership team that to achieve credibility action needs to follow rhetoric.
One area where Heartland don’t do what they say they will do
Directors Ellie and Vanessa must be getting frustrated with progress
Couldn't agree more minimoke. All positions should be on merit, not whether you are male or female.
Interesting article that some of the more enlightened forum members might find interesting. Even has some actual facts
The Legacy of "Fearless Girl" One Year Later
https://insight.factset.com/the-lega..._hsmi=61189632
Extract -
The table above illustrates that companies with gender-balanced boards tend to generate higher price returns, return on equity, and return on invested capital and experience lower volatility. This data is consistent with our findings from the previous year and the differences are sharpest when comparing companies without female board members and with more than 40% female board members. We also discovered that companies with gender diverse boards pay more dividends than our other buckets.
If woman produce better reults why then is our education system kaput.
Men only make up 25% of teachers.
Rest homes,why is it that no one i talk to has a good word to say about the workers at rest homes,again nearly 80% are woman.
Not picking on woman just stating facts.
I agree completly with you,have a Father in Law in care at the moment.I respect their work tremendously.
What i am saying is that it's pretty hard to find people that will agree with me as what i hear is moan moan bitch bitch about the staff.
Not from me i greatly appreciate the work they do.
Winner69.
I thought you had your own thread in "off market discussions" you could use for your rants.??
Better there than here.
Nonsense? I think its great. I want a day and why not? Should be a public holiday too.
I believe you may be missing out on something. That link said "International Men's Day is celebrated in over 70 countries,[9] including..." then listed 39 of those 70 countries. Here in NZ it is often recognized by events such as the Blue Ribbon Ride to highlight prostate cancer. It is not a day off work, and doesn't receive the same publicity that women's events do.
I'm not missing out because its not something worth highlighting when I can celebrate it every day. And dont get me started on the sexist health department funding which must be run by wimmins. Prostate kills as many men as breast cancer but do these Wimmins put in as much money for prevention. No way. Anyhow - getting way off topic now!
I definitely think this is an issue worth debating and we should look at results from countries that are doing things different to us in this field. As you know, I have seen positive changes in a different country. But the Heartland thread taken over with pages of this already this morning is not the thread for it. It is not a company specific issue
You guys are right after all with all this carry on by Heartland about gender and enthnicity
I had a nice lunch with a wise old gentleman today. He reckons that many companies may have grown past their point of optimal size.
They then start wasting effort and money on feel-good diversity campaigns ....because they have so much scope for waste, not because its inherently economically beneficial or productive
Sort of makes sense - you were all right after all.
Been trying to tell you that for a while mate. All this printing of parts of the annual report in Maori and then going on to specifically single Maori's out for special treatment in the company and dressing that up as "general diversity" when we all know what it really is, is absolutely outrageous in my opinion.
I think they take it to a new overt level and some shareholder(s) need to take the board to task for this. Must be some commercial reason they'd go so far out on a limb surely ? I for one wouldn't mind wagering a few quid that a significant amount of treaty settlement money was deposited by Iwi and it came with strings attached.
Yes I would expect from Heartland's savvy board and management, it may well be for sound commercial reasons.
The very experienced board do have a lot of social/community commitments.
They connect with the community,staff,depositors,customers, and investors.
ps.With my granddaughter learning Maori,Heartland's annual report may be just what I am looking for to get her interested in the sharemarket.
Guess I may have to buy her a few shares ,so she gets her own report.?
That is the sort of put down that this site doesn't need. Your contributions are usually thoughtful and valuable and I think it is unworthy of you. You have a problem with Heartland's diversity policy generally, along with some others on this site, but it has never been clear to me what it is. I hesitate to ascribe it to generalised sexism or racism, and I invite you to explain why you believe that a diversity policy is not good for Heartland and its shareholders.
It seems to me - I'm not a shareholder - that Heartland sees it as a point of difference to be "Kiwi", which in their view includes an effort to include te reo in their communications to shareholders and the wider investment market. Probably an effective and appropriate strategy in 2018.
Personally I don't think a diversity policy is any good for a company,it should be the best person for the job,and the best person for the companies onward progression and growth. If that person be female,asian,maori or whatever then great.
But I do think HBL are trying to snuggle up to as many different ethnicities as they can,as it improves the likelyhood of improved business. imop. Those ethnicities are an important and large percentage of our economy now.
Absolutely right. They’re tagging the #metoo campaign, walking the talk that they are not an Aussie bank, giving themselves a point of difference. All banks basically offer the same things, so why will kiwis choose heartland... they’ll choose heartland with their heart
We are in the era of inclusiveness,diversity and collaboration now. It does sound like some are still stuck in the past and yes to me it suggests sexism and racism not just ignorance. Come on get with the present and value this country and the diversity it is, all for one and one for all. heartland is showing by example.
It appears that people are often rated on potential rather than performance. For example the fact that a woman MAY have a baby sometime in the future which may affect her career is about potential rather than performance.
http://www.science20.com/news_articl..._record-155376
“Male applicants with leadership potential were most likely to be seen as successful and having the most impressive CV. Also, the findings suggested that men with leadership potential were rated higher than men with leadership performance. However, female applicants with potential were not rated higher than those with performance.”
http://www.catalyst.org/zing/how-new...ing-women-back
• Men are promoted on potential, women on performance. Why do so many young male hotshots move up the ladder ahead of their more seasoned female peers? Because women are judged on what they have actually done. For promising men, potential is enough to win the day, according to research by Catalyst and McKinsey. Women have to prove themselves over and over and constantly fight the stereotype that they don’t have what it takes to be real leaders. Even in female-dominated fields, men get on the “Glass Escalator” and rise faster and higher than their equally qualified women colleagues.
I reckon I'm better than what I actually am - in everything except stock picking
[QUOTE=STMOD;707471]Not happy with the direction this thread is taking.
Couldnt agree more.
When I was banned along with others-even though it was only for a short-time it certainly made me reflect on how inappropriate threads can get
Worlds all happy again
HBL back to $2 in next week or so
Growing profits ...growing divvies ....what can go wrong
And don’t forget a profit upgrade still to come.
No it doesn't. https://www.nbr.co.nz/article/we-don...ys-th-p-213619
Behind the paywall article in NBR today RBNZ comes out and basically says we do not have a duty to investors, which I find a little surprising.
The nub of this thing for those that don't have access is that their client is the bank or insurance company and they do not have a duty of disclosure to investors under the continuous disclosure requirements. The disturbing thing about this is that potentially the RBNZ could be conducting an investigation for a very long time on another client, like a bank and no disclosure would be forthcoming until they took whatever action they proposed.
RBNZ oversight in my opinion gives only limited additional assurance and certainly not any in terms of timely notification to investors.
Well I would have thought so but in the CBL case it was all wrapped up in confidentiality orders despite the subject matter being one of extremely high relevance to investors, i.e. solvency concerns. One also wonders how the auditors signed this off as a going concern. The mind boggles a bit about how this would have all played out for N.Z. banks including HBL if the recent dairy crisis had got a lot worse. Thankfully the banks dodged a bullet and its business as usual.
Can't help wondering if the SP reaction today in an otherwise strong market has something to do with the RBNZ calcifying the specific nature of their role ?
I sold all of mine today. But pretty sure my piddly amount couldn't affect the SP though.
At least Heartland isn’t as down as much as Blis is
That’s good
Not where they are looking to grow.
PGW's market cap is $468mil at current share price of 62 cents.
That amount of capital would go a long way to buy UDC which would be a perfect fit with HBL.
HBL do already have an agreement in place with PGW, which was arranged when HBL brought PGW's finance division.
Umm, the HY report I read doesn't support your statement of no growth. It showed growth across almost all areas:
households +15%
personal +36%
vehicles + 15%
NZ reverse mortgages + 12%
business + 14%
rural + 17%
Australia +27%
Yes EPS was flat but I think its only fair to give them some time to get all the new capital working for us. I'm happy holding this stock although I have a lot less of it than I used to.
The current drop from $2.24 has me wincing...
However ... Still looking forward to the next DRP to add a few thousand more..
Still keeping the faith..
Top of the mountain was actually $2.14 in December 2017. Cunning folks sold at that price and recycled funds elsewhere :cool:
I have the old age but lack the cunning... ( Both, overcomes all )..
I still sleep well at night..
After all it is just money :-)))))
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 :)
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.
.
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.
They love this chart eh Percy
Probably goes a little way to justifying the ongoing issuing of milions of performance rights to senior management (ie free shares sometimes)
Yes I think I and all shareholders love that chart.
Please don't start another one of your rants.
Hope no glitches in Heartland automated systems
https://www.smh.com.au/business/bank...20-p4z573.html
I thought it was a relevant point to make..,..Heartland’s new systems have had their glitches and they are bound to lend responsibility just like CBA. Maybe an exposure Heartland have.
I’m sorry I’m ‘hopeless’. Not everybody can be perfect. I accept that so won’t be too offended by your comment about being ‘hopeless’. At least you didn’t say things like ‘wasted space’
Whatever you think percy, I still love you. I won’t bear a grudge
Over the years HBL thread has become a rubbish dump for posters to throw their rubbish.
Heartland will not get a banking licence.
Heartland is in deep trouble with dairying loans,with links to dairy farms that were not HBL clients.
Heartland will loose huge money on no deposit vehicle loans.
Heartland is the only thread for diversity discussion.Why?
Now we are being thrown up every banks' computer clitchs.
I can not see this rubbish will help any ST investor gain a better understanding of HBL as an investment.
As you kindly point out "wasted space.".
I expect more from you.You let yourself down.
My record on this thread has certainly been a great deal more than "well positioned."
Thankfully the likes of Sparky The Clown and Paper Tiger also made great contributions.
However it is ShareTraders great loss that Sparky left,and PaperTiger is seldom posting at present.
Possibly you could put a bit of effort into your HBL posts.?
I know you have the skills when you decide to use them.
Off subject [already],but any one interested in Australian banks will find the discussion between Roger Montgomery [The Montgomery Fund] and Karl Siegling [ Cadence Capital] of interest.
Google Livewire 3 thriving small cap financials.
W69 will most probably be kind enough to post the link.