Teaching is an underrated profession
Quote:
Originally Posted by
Snoopy
There are 308.703m HNZ shares on issue as far as I can work out.
The total number of ""Monitor+" loans on the books add to $265.683m. That works out at 86cps. So assuming all of those loans are as bad as Heartland assume, Heartlands equity will be totally wiped out (assuming NTA of 86c now). That means the sky is the limit as far as future ROE is concerned. There is potential here for Heartland to go to the top of the ROE class!
SNOOPY
I give up, it has been totally wasted exercise trying to educate you on this sort of stuff.
If I set a test with the one question "What is the value of a NZ $10 bank note" I am not sure you would pass.
So assuming all of those loans are as bad as Heartland assume then they will 'lose' the $15,961,000 that they have "Provisioned for collectively impaired assets" (2013 Full Year Financial Statements 37(d) 1st table), and which is already written out of the assets.
Paper Tiger
...but only people make you cry
As I said: I have given up.
Never has the adage "You can not teach an old dog new tricks" been more true.
Best Wishes
Paper Tiger