Holders of CoCo Bonds shud be scared not issuers or equity holders ...as new precedent has been set by Swiss by jumping equity holders over Bond holders ...this is making holders of AT1 bonds nervous like hell !!!
Printable View
No - all capital is Tier 1 CET1 capital. No AD1 or tier 2 capital.
HBL is/was considering an issue of tier 2 subordinated notes. Different type of instrument to AD1 CoCos.
Natural next question be how CS’ tier 2 notes fared in its merger with UBS. There was no impact.
https://www.bondsupermart.com/bsm/ar...bs-RCMS_268680
I would not be surprised to see the tier 2 note issue differed. Note very little is known about the fine print of the mooted T2 subnote issue as nothing has been released nor the offer launched.
Anyone think there could be a slow bank run from HGH to ANZ, BNZ, ASB or Westpac.
Similar to the US regional state banks seeing some deposit flight to Citi, Bank of America etc.
I.e move your deposits to the ‘too big to fail banks’
Heartland have proved very adept at raising deposits.
For each of the last four sequential quarterly growth rates in net deposits, HBL has grown deposits far in excess of industry growth rates, and has among the highest deposit growth rates in NZ.
The most recent available quarter saw deposits across all deposit takes grow 2.3%, HBL was 1.6x that 3.7%.
HBL's deposit rates remain sharp and note the 'shareholder' deposit offer has recently been sent out.
Attachment 14522
Hey FM, it will be interesting if HBL can continue this trend in current banking industry climate
Page 32 Heartland presentation 28/02/2023
Heartland Group
Heartland increased borrowings by $158.3 million (2.6%) to $6,329.1 million.
New Zealand
• Heartland Bank increased borrowings by $249.7 million (5.7%) to $4,596.3 million.
‒ Deposits grew $480.5 million (13.4%) to $4,077.7 million, driven by competitive pricing on
targeted products, including Heartland’s Notice Saver offerings which both received Canstar
New Zealand recognition in the half.2
‒ In Q1 of FY2023, Heartland Bank experienced the highest growth rate in retail deposits of all
main and domestic banks in NZ.1
‒ Other borrowings decreased by $230.8 million (30.8%), largely due to the maturity of $150
million retail bond, as well as the amount drawn down in Heartland Bank’s committed auto
warehouse facility decreasing by $76.6 million.
• Total liquidity strengthened, increasing by $146.9 million (23.4%) to $774.8 million.
• Heartland Bank holds liquidity well in excess of regulatory minimums and maintains strong
regulatory liquidity ratios.
liquidity nearly equal to on call deposits- that's a very good bank.
But how robust is their loan book I wonder?
To any one who has any concerns about Heartland Bank or Heartland Group ,I think reading HGH's 28th February presentation will find it interesting,and informative as well as being reassuring. Here is the link.
http://nzx-prod-s7fsd7f98s.s3-websit...457/389620.pdf