Good profit in a low interest rate environment. Imagine how good it will be when they actually increase.
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Good profit in a low interest rate environment. Imagine how good it will be when they actually increase.
Hmm can Heartland run their own kiwisaver scheme or wouldn't it be worthwhile for them.
It is quite "interesting" how they can project forward a whole year ahead what the profit will be and more often than not get it pretty spot on. You could very easily be forgiven for thinking some variations in their bad and doubtful debts provisioning methodologies occur from one year to another to make the numbers fit which kind of makes me wonder why bother with such a modest forecast upgrade ? (Not that I am complaining, disc: I have truckloads). Anyway...in August 2021 when they report a profit we already know for FY21 we get to know what FY22's profit will be and that's pretty cool no matter how you slice and dice this.
The master of profit smoothing was Jack Welch at GE --- chart below proves that
Maybe Jeff learnt a few tricks from him.
Its actually a hard thing to do well because you need to remember whats in each little hidey hole - I've seen a few attempts at it fail big time
In GE's case Jack's successor had to unwind a few things
Some investors however do see 'smoothness' of earnings as a red flag
But I've long admired Jeff's ability at it
Yes quite a contrast to smooth or not to smooth
In a world full of rough seas smooth is a refreshing change. Huge ups and downs are no good for the heart rate, see 16 second mark https://www.youtube.com/watch?v=c8qBvw3ofyE
I like the boat but those conditions are for younger and keener blokes than me :eek2: