Virtual Investor Preso at 12pm today....
https://www.nzx.com/announcements/417769
Printable View
Virtual Investor Preso at 12pm today....
https://www.nzx.com/announcements/417769
Interesting piece from Jenny Ruth ….Jenny always worth a read
At least she didn’t use the phrase ‘jiggery pokery’ as she did in a piece on Westpac
https://justthebusinessjennyruth.sub...m_medium=email
By the end of the article I was left pondering… who can you trust?
HGH faith remains, looking forward to the 20th and many more divie’s to come.
El Niño here in a few weeks not good news for the economy ……and Heartland
The 3 C’s are lead indicators of where economy going …….Climate, commodities and currency ….at the moment the outlook for 2 of these is not that good……probably make our current non-recession become a real one early next year
Don’t forget Jeff keeps reminding us that Heartlands fortunes are dependent on how economy going ….and Jeff old enough to remember how bad the El Niño droughts of 1997/98 were.
Actually - El Nino in itself does not need to be bad for NZ economy ... depends on how the local weather plays out and how well the farmers are prepared. They certainly can't complain about lack of notice, and I assume that e.g. the new Canterbury Planes irrigation system (CPW) might get a good test this summer.
Might be even good if local farmers are prepared and global food productions shrinks => better margins :) ;
Here is a more detailled analysis produced for the last big El Nino event:
https://www.rbnz.govt.nz/-/media/449...%20in%20summer.
Poor Leanne. Jeff never told her when she became Heartland 'Bank' Chief Executive that Heartland isn't really a bank. It is just a jumped up finance company that does *all* its banking through Westpac, and the 'bank' bit on the Heartland name was all a marketing exercise. No wonder Heartland isn't on a level playing field with the real banks.
SNOOPY
DRIP shares allotted today at $1.6865 compared with the current on-market price of $1.73, so a marginal benefit for those choosing that option.
ElNino arrived here two days ago,I like👍Holding Heartland thru whatever and out the other side,income and easy to sleep at nite stock for me.
Basel III capital requirements.
Common Equity Tier 1 (CET1) is core capital that a bank holds in its capital structure i.e. retained earnings. The ratio compares a bank’s capital against its risk-weighted assets to determine its ability to withstand financial distress.
The following disclosures were all reported on 30th June 2023
Bank
CET1 % Tier1 % Total %
CBA 12.20 14.50 20.00 ANZ 13.50 15.40 21.10 WBC 11.86 14.02 19.71 NAB 11.90 13.80 20.20 HGH 12.68 12.68 14.71
It should be noted that HGH CET1 has been decreasing compared to both 2022 (13.49%) and 2021 (13.99%).
Infact, since 2020 HGH's CET1 ratio has only increased by 0.01 compared to the big four Australian Listed Banks increasing by 0.60 - 2.40. This is, in my opinion, because they have been paying out too high dividends instead of retaining capital.
The $100 million of bonds issued earlier this year on NZDX "HBL1T2", is classified as Tier2 capital.
The only other NZDX listed bonds "HBL020" is classified as Tier1 capital, however when they mature on 12th April 2024 I believe this will further decrease HGH's Tier1 ratio by $125 million. Any subsequent bond issues will be classified as Tier2, this is because of changes of capital definitions changes defined by the RBNZ document "BPR110" in 2021.
The big four Australian banks already meet the 2028 capital requirements, where as HGH is going to have to retain more capital in the next several years to meet these requirements.
Dividends possibly further threatened...Jenny Ruth works through ssome of the regulatory impacts upcoming:
https://justthebusinessjennyruth.sub...m_medium=email