Originally Posted by
Fiordland Moose
There will be compressing demand for some types of loans and or perhaps more appropriately reduced appetite for Heartland to provide lending for others (started pulling back on SME lending last year, personal lending for sometime, etc), but still good growth in others. Largest division, reverse mortgages, is very likely an immediate beneficiary of inflationary and cost of living crisis, evidenced by the near 25% annualised growth in the book from June22toDec22 (an acceleration). Going well off a very low base in targeting the mortgage refi market which should benefit a bit as CCCFA regs have been reworked. HGH growing well in motor receivables although pricing getting competitive (& am guessing it will slow eventually). Bits and bobs, yings and yangs, ups and downs, but ultimately see a growing book, underpinned by RMs. In last 6 months, HBL (NZ) grew its gross receivable book 2.4x that of the aggregate market. But must acknowledge there are headwinds in various segments and its prudent to reduce originations in those. My meandering thoughts only.