Thank you for your post Joshuatree.
I was expecting a bit of flack!!
It is difficult for people with all their capital tied up in their home.What are they to do? Sell the house so the kids can have a good inheritance,and then go jump off a cliff?
Printable View
I dont read the NYT but the NZ Hearld has lots of articles like that - you know the type - the mother of 5 kids and another on the way cant afford to feed her family. Or the family think the retirement village riped of their parents bacause they dont get the 'capital gain' even though their parents loved living there and knew that when they signed up.
As I said, I only read the first paragraph - I had no sympathy for the 'kids' that their inheritance was spend by the parents who earned it.
I am sure Heartland will do it right so that their reputation is intact.
Some parents are really not nice people at all, and their sensible children get and stay as far away as possible. I know a couple of seriously nasty ones, one rather close to home. Only a minority I hope, but still, abandoned olds may be the authors of their own misfortune. They are not all apple pie baking grandmas and stern but fair patriarchs. We will likely never know the reasons, but that doesn't mean there are none.
Looks like we have a buyer. I wonder if HNZ will get their money back?
http://www.stuff.co.nz/business/indu...from-receivers
She was driven to suicide by her bank losing her cash trading the derivatives' markets.
We know it as the GFC.
What a lot of people don't know is she thought she had her cash in Bear Stories,which she had always enjoyed,but it turned out to be Bear Sterns who went broke.
HNZ is a secured creditor. IRD will have priority. Are there any back wages owed? Unsecured trade creditors will be last in line.
As an aside. is the liquidator/receiver Gary Whimp connected to the Whimp who was behind the low-ball offers for various NZX listed companies?
Receivership and liquidations are different - I think it would be unlikely ACC would appoint a receiver, more likely file for a liquidation - it is normally the securred creditors that call for a receivership. IRD would by far seek to liquidate the most companies in NZ, in part because they have a team to do it, even if the balance is reasonably small. Your average M&D business will just write of the debt as the court costs etc normally outweight the benefit, especeilly since the liquidated company normally has no funds left after the secured creditors are paid (including the owners family trust).
not so sure about reverse mortgages but i think annuities are going to be big.....kiwi saver accounts are getting bigger and the government set up kiwi saver to ease the governments cost of retirements...at this stage its costing them..ie $1000..kick start etc....so at some stage your kiwi saver accounts are going to fund your own retirement...it amazes me when people write in and say my kiwi account will have $100,000 when i get to 65 so will go on oversees trip and blow the lot then i,ll go on government super...sorry aint gonna happen...you will have to buy an annuity.....even the financial advisers wont admit this cos their not going to rock the boat in case they upset the gravy train
I agree that it won't take much in the way of "Jim blew his kiwisaver money" stories for the pressure to come on "to protect Kiwi savers from themselves".
Scary.
However I note that the Brits have just dumped the "compulsory annuity" aspect of their super scheme after an ongoing outcry about the amount being made by the provider in relation to the amount paid to the beneficiaries.
interesting about the britz....must admit am not sure when and how which government will tie up everyones kiwi saver......it will become compulsory first with no opt out option.... but it wont be a popular decision...could possibly loose them the election unless they do it in first term of new parliament
Well I would have expected my SPP refund by now. Has anybody else received theirs?
I note that there has been a earnings upgrade from an analyst. See http://www.reuters.com/finance/stock...?symbol=HNZ.NZ
FY15 earning per share now 9.9c for one broker.
Has anybody seen the report? Anything interesting to note? Was it due to the acquisition or other factors. Also interested what the broker forecasted for FY14 (NPAT)?
I am a muppet. I have received it. Just looked at my CMA account for 25 March. Expected it would have been deposited into another one.
It was a different account than what the funds came out of. I guess Link Market Services must use my Dividend Payment acoount for the SPP refund.
Winner 69,
The trend down for FY14 is explained by the addition shares issued with the purchase of the Reverse Mortgage business combined with a poor first half result. FY 15 cannot be explained with additional shares. I suppose we need to see the original reports to really get an idea. But the last report has caused an upward revision from 9.1 to 9.27 a week ago. More importantly, the last report has a eps is 9.9c.
I really wish management would narrow guidance for FY14. I fear a downgrade.
Sales and Profit Figures in New Zealand Dollar (NZD) Earnings and Dividend Figures in New Zealand Dollar (NZD) Current 1 Week
Ago1 Month
Ago2 Month
Ago1 Year
AgoSALES (in millions) Year Ending Jun-14 119.81 119.81 119.81 118.72 120.41 Year Ending Jun-15 129.14 129.14 129.14 123.51 130.13 Earnings (per share) Quarter Ending Jun-14 8.8 8.9 8.9 9.03 8.4 Quarter Ending Jun-15 9.27 9.1 9.1 9.5 9.25
but they said EPS accretive
I assume that the analysts eliminate one off costs etc and the consensus is 'normalised'
https://www.nzx.com/companies/HNZ/announcements/249494
Has to be a good thing....a Directory buying 3,000,000 Ordinary Shares on market at 87c.
Nice big public commitment to the company.
So the 43mill shares issued to Senior Money International made them the largest shareholder. Looks like Mr Tomlinson topped up to push himself to No. 1 again.
https://opencorporates.com/companies/nz/3152425
Shouldn't there be a Change in Substantial Shareholder's Interest announcement, not just a ongoing disclosure?
Thats only required for movements of more than 1%
Another Heartland customer goes down
http://www.nbr.co.nz/article/credito...se-vy-p-155195
Hope this does not affect FY14 results
I guess the 3rd quarter report (end of May) will give us a sniff if there is any trouble meeting forecast.
Good volume in the stock of late. Must be some institutions trading (or percy).
It will be interesting to see what security was used. Hopefully a nice villa in Grey Lynn or some other million dollar asset. The share price rose to 89c so it can't be too bad a loss, if any.
New vehicle sales accelerate
http://www.stuff.co.nz/business/indu...les-accelerate
Good news for our HNZ holders
Thanks for the link.
I read an article the other day that stated sheep and beef farmers will enjoy a record year,with profits expected to jump 35% [$113,000 per farm].This should be good for HNZ's rural lending .
I think HNZ's purchase of Sentinel will add weight and respectability to the reverse mortgage sector.
Can't help feeling we are well positioned. !! lol,.
Checkout John Key's response to council high rates for the retired. He suggests reverse mortgages are a good idea. Move over Oravida, could Heartland be the next big national donor? Or maybe he has been reading some of Percy's posts on this thread and decided HNZ was a good place for his millions:)
Of course, he is dead right. Just not for my parents:)
http://www.nbr.co.nz/ask-the-pm
Absolutely great news to have "our leader" as the new chief Heartland ramper.!!!! And having so many wonderful photos taken showing him wearing his new "Skellerup" gum boots, means he with retain his natural affinity to Heartland New Zealand.!!!
It is a moments like this I feel it is time to replay Freddie Mercury's "I want it all."
We are quickly moving from "well positioned" to "poised."
On another topic, the Adelaide and Bendigo Bank has paid $1.8 billion for the Rural Finance Corporation from the Victorian State Govt. I can't help but think that Heartland Bank could be a takeover target at some stage. One of the big four banks looking for access to a niche market? Or perhaps Rabobank expanding its rural interests. Even a bank like SBS Bank expanding. Any thoughts?
Maybe one of the big Aussie Banks, like Trust Bank got swallowed by Westpac.
I don't think that Heartland has anything that Rabobank would want. Rabobank is interested in rural lending not running a retail banking network. I am under the impression that Heartlands rural book is nothing special.
SBS is a mutual so any take-over offer would have to be all cash, thus unlikely.
Boop boop de do
Marilyn
Who's the major holder willing to keep offloading at these levels?
Seems incredible that it's traded in such a narrow range for the better part of 12 months (apart from the brief jump over 90c).
"New Zealand's rural lending, which more than doubled to an all-time high of $50.6 billion in the past decade on dairy farm expansion, may slow as farmers use record milk payouts to reduce debt, spurred on by rising interest rates."
- Full article here: http://www.nbr.co.nz/article/nz-rura...sion-bd-155757
Last year on 5th June Heartland's announcement was "Forecast",so maybe we will get another update about the same time this year.
My very un official ear to the ground tells me the reverse mortgages have grown in respectability with Heartland's backing,so this will certainly give Heartland an area for excellent organic growth.Car sales are at record highs,farm incomes increasing [go to PGW thread for link showing lamb and beef farmers' hugh profit increases of about $113,000 per farm],and lower unemployment,should all work in Heartland's favour.It should be noted Australian Banks' NZ divisions are recording record profits.
I also believe Forbar research dated 3rd April projected 6.5 cents per share dividend for 2014, and 8 cents per share for 2015.
just saw Heartland TV ads on Prime TV 5:30 news for their reverse home loan:t_up:
"Every quarter is now a record quarter' seems a common theme
Hnz in this category?
Some numbers around all banks
http://www.kpmg.com/NZ/en/IssuesAndI...er-2013-v2.pdf
Thanks for the link Winner69.
Reads very well for Heartland.
With all of Moosie 900's signals firing up,that is MACD,Bollinger Bands,Stochastic,you could say all the ducks are lined up for Heartland,which is appropriate considering it is the start of the duck season.Just hope Heartland keep flying high out of shooters' range.
percy would call it 'well secured, higher risk' assets, rather than poor quality, and so would I.
Growth does seem elusive in their traditional markets, but growth is very hard to achieve in high turnover assets, like cars, so standing still is possibly a good effort
I dipped my toe in the water with this one yesterday and PGW. Its hard to find growth stories on reasonable price earnings ratio's and I think over the years this stock will reward with solid growth and a good divvy yeild. We are well positioned :)
Thanks mate, I'm looking forward too it:D
Welcome aboard Roger. This one has been a great ride for me, which I have little doubt will continue for a long time yet.
I will most certainly be at the AGM Percy as long as I'll be in the country at the time. Have been reading the book you recommended. Great reading. Many thanks.
Just out of curiosity, when & where is the next AGM? I can only see last-years one.
PS: Decided to increase my holding today.
Roger it will be great if you join us to the next HNZ AGM's. (Whenever it is) Its something to look forwards too.
After the meeting usually some good discussions with fellow shareholders and instant dividend payout in the form of beer.
I know you like them both. :).
Here is an example where one of the Big Four banks is moving into Heartland territory : http://www.sharechat.co.nz/article/5...al-sector.html
Just received a thick envelope from AA Finance - containing a flood of investment statements and disclosure notes from Heartland and an invitation from the AA to invest with them (i.e. Heartland).
Lots of trees must have died to print this bunch of boring (and unattractive) disclosure statements, but somehow they forgot to add a convincing message why anybody reading the lot should open an account with Heartland. Well, sounds like AA members enjoy now a "special" rate, but they didn't say what the rate is and whether it is specially good or bad or just specially normal).
To be honest - so far I never received anything worthwhile reading and processing from AA Finance (typically its some overpriced life insurance proposals I don't need) - and the paper they distribute their proposals on is typically not even suitable to start a fire in our log burner (too glossy). I was however surprised this time to see the Heartland logo on the documents (which made me look twice, before I disposed the lot into the bin for paper recycling).
As an AA member my disappointment is limited - I know that they are no finance specialists and don't expect better from them (related to financial advise), but as Heartland shareholder I start wondering, whether I better should start selling my shares and realise a small gain before they blow all the money in weak campaigns. Can't really see them growing into a successful business if they continue to go this way. But than - maybe they just need a marketing department?
Thanks for sharing your thoughts with us.Think it would be good of you to share with Jeff Greenslade [HNZ's CEO] [09]9279149.M.021563693 or Simon Owen[HNZ's CFO] [09]0279195.M 0276294602.
It was pointed out to me by a fellow shareholder,who is in advertising,that HNZ should have provided an information folder to every shareholder who attended the agm,with new a/c forms and deposit rates.
BP
I know what you mean regarding AA. I lined up recently to renew my membership(been a member for 36years). There was a hard sell with my renewal, I wanted the standard membership, the staff member tried several times to upgrade me to AA Plus and was extremely persistent. Anyway eventually renewed my membership. Then she started to try and sell me life insurance!! I replied that I did have life insurance but there was no way I would be taking out cover with AA Life as their policies are by far the most expensive on the market as validated by Consumer annual sampling of Life Premiums. I dare say the same process was endured by every member renewing memberships in person.
In fairness to these very busy people who have zillions to look after I use the "Contact Jeff Greenslade" form on their website
I outline what I want to discuss and the questions I would like responded to and invite him to ring me when he has the answers or even just respond by email.
Think an efficient and productive way to communicate with a busy man. Thought it better than just leaving a message when calls inevitably end up at a voice mail.
Unfortunately approach don't work ...three times in the last year totally ignored
Never mind ...I just take it as an insight into the company culture
But then again being ignored these days is no big deal
I have given two people's phone numbers.Both direct lines and their mobiles,so hopefully you can get straight through to them.
Some time ago I rang the CEO of TUA at 7.30pm and sorted out one of Snoopy's queries in a couple minutes.
Talking to a machine, or secretary is poor form. Should they then not return your call, you know to stay away from the company.
This was proven by that MVN Fella not returning my call.Saved me plenty.!!!
News just in, new head of business banking for HNZ South Island - 30 years XP.
http://www.heartland.co.nz/_upload/n...0as%20Exec.pdf
Good news to bare I reckon! Will be interesting to see if it breaks the stalemate of the past week.
Plenty of the right experience for sure Belg. You reckon going from GM Commercial ANZ to CEO UDC then (after a stint as s.i boss) to Head of Business Banking HNZ is heading in the right direction? Just askin, dunno.
Heading in the right direction ......good question
He did "retire" from UDC so probably bored with "retirement" and joined HNZ when Jeff asked him
Maybe he has some experience in niche areas
But HNZ does seem to be getting pretty experienced ......no sign of energetic innovative people getting on board to pump things up a bit
This Chris guy onceGeneral Manager of Commercial Banking for ANZ. National Bank
Percy's mate Jeff once the managing director of corporate and commercial banking for ANZ National Bank.
Probably old drinking buddies from days paste
Often how it goes. Should be noted that the old NBNZ were NZ's heaviest supporter of agricultural sector, and under Sir JA guided that sector through some pretty dark moments. These guys should know what they are doing, despite being over 35.......:cool:
There's no substitute for experience. Older highly experienced blokes have seen almost all the B.S. there is to be seen and accordingly can see the wood for the trees and smell B.S. coming from a mile off...like an experienced old Beagle dog at the airport...remind me again how many finance companies we saw fall over due too loose lending policies, nuff said.
Don't think anyone was implying it was a bad move for HNZ snaps. UDC is an excellent Company with a great loan book, always poorly imitated by its competitors eg Marac in its various forms (incl under HNZ) So great to get Chris aboard. Thanks Winner for pointing out the "retiring" bit, all fits now.
An article in The NZ Hearald, headed "Top Shop chain set for NZ launch" may hold the answer for The Carter Group's recent sell down of Heartland.
Carter Group are taking a holding in Top Retail who hold the rights to own,develop and operate the London based brand in NZ.
CEO of Carter Group is Mary Devine,Briscoes director and ex CEO of Ballantynes and ex CEO of EziBuy.
This from an email from Personal Investor - Australian view.
The Commission of Audit has recommended including homes above a certain value in the means test that determines who gets the age pension and how much.
Under the proposal, homes valued in excess of A$500,000 would be assessable for singles, while for couples the trigger would be A$750,000.
The family home is currently exempt from the assets test but the commission argues this is inequitable because it means high levels of wealth are sheltered. It suggests a more comprehensive means testing regime be put in place by 2027-28.
If this proposal is picked up by the federal government, it would see a sizable group of retirees required to call on the equity in their homes to help fund their retirement.
It would be a brave government that "forced" pensioners to sell their homes to release that equity, which makes reverse mortgages a likely tool for retirees who need to convert their home into cash flow.
Even now, a reverse mortgage can be an alternative to "downsizing" into a smaller and cheaper home to release funds for retirement.
A reverse mortgage allows homeowners to access a loan, or a regular stream of cash (an annuity), using their home as collateral. Borrowers continue to live in the property until death - or they move into aged care - after which the loan is repaid from the sale of the house.
The mortgage can apply to the full value of a property, or borrowers may be able to access "residual value protection", allowing them to set aside a portion of the house's value to be available for aged care or as an inheritance.
Interest rates are generally higher than for standard home loan products due to less competition in this sector and higher risks for the lender.
For some years now, on the back of the lessons learnt from the global financial crisis, there have been government-imposed rules around "negative equity" that prevent lenders from extracting repayments beyond the value of the house. This means lenders can suffer a loss if the loan amount exceeds the value of the house at the date of the sale, something that may happen in a softening property market.
Reverse mortgages involve compounding interest, where interest charges are added onto the loan as they accrue. This means the loan amount can rise quickly.
Taking out a reverse mortgage can affect the availability of funds for major items such as aged care and bequests, and it can have an impact on other family members who may live in the house.
Ultimately reverse mortgages demand a much higher degree of financial literacy from individuals, who may need professional advice on issues such as tax and Centrelink implications.
Despite the fact that reverse mortgages helped send mortgage insurer the Federal Housing Administration bankrupt in the US, the market there is returning.
How would increased demand for reverse mortgages change the Australian financial system?
[B]The bulge of baby boomers entering retirement, along with a change to means testing along the lines proposed, could be expected to lead to an increase demand in such products[/B]. In theory, new lenders would be attracted into the market, thus increasing competition and driving interest rates down (in relative terms, against the risk-free rate).
Three main sources of risk are apparent, the first of which is declining real estate values, or the risk of negative equity. The loan amount may end up being larger than expected if the borrower enjoys a long life or property values fall.
Second, with a reverse mortgage the lender generally has no recourse to assets other than the home. Third, at this stage of life borrowers may neglect maintenance and property improvements, eroding the value of the home.
Many of these risks, in particular real estate values and an ageing population, are systematic and may become systemic. Should reverse mortgages enjoy significant growth, as projected, Australian lenders would have increased exposure to house price risk. If house prices dropped, more defaults would occur.
The impact of growth in reverse mortgages on the housing market itself may be limited, as properties are sold only after death or upon a move into aged care. But there may be a decrease in downsizing activity if these products become more popular.
Currently, reverse mortgages are mainly provided by the banking sector, which is already over-exposed to mortgages. At the same time, the superannuation sector is looking for long-term investment opportunities. Why not create financial products where super funds provide cash flow for retirees in exchange for access to the value in their homes?
Some super fund members may not want further exposure to Australian real estate, particularly if they are already house owners, but this could be an additional option in the current portfolio of investment choices offered by funds to their members.
The outcome might be comparable to the situation in overseas pension systems - such as Germany's - where pensions are organised to a large degree as intergenerational wealth transfers, where one generation pays for the next generation.
Such a system could increase the resilience and efficiency of the Australian financial system.
Harry Scheule is associate professor, finance, UTS Business School at University of Technology, Sydney. This article was originally published on The Conversation.
Thanks for posting that very interesting article Winner69.
Yes thanks guys and int to re carter selldown. Hope reverse mortgages gain traction.need to break down the sacred cow of home ownership and negative legacy experiences of past reverse mortgage companies greed and hidden/small print details.
Might pay HNZ to stay in Australia, if they were thinking of selling the OZ bit off
Great post thanks Winner
Cheers
Positive news that S&P raises HNZ's credit rating a notch:
NZX Release
S&P raises credit rating on Heartland Bank
22 May 2014
Heartland New Zealand Limited (NZX: HNZ) is pleased to announce that Standard
& Poor's (S&P) has raised its long term issuer credit rating on HNZ
subsidiary Heartland Bank Limited (Heartland) to 'BBB' from 'BBB-' and
assigned a negative outlook. The rating upgrade reflects S&P's view that:
o Heartland's business position strengthened over the past three years upon
the bank's transition toward its core niche markets (such as vehicle asset
finance, invoice financing, livestock financing and reverse mortgage loans)
and away from non-core assets.
o Contestability in these, typically higher-risk, specialist markets is lower
compared to traditional commoditised markets such as the residential mortgage
loans market.
o Heartland has made progress in exiting its non-core property portfolio and
reducing its residential mortgage lending portfolio.
The negative outlook reflects the negative economic risk trend assigned to
the New Zealand banking system and S&P's concerns around economic imbalances,
which are not specific to Heartland. S&P's full report is attached.
Heartland is delighted with the raised rating, and in particular with S&P's
acknowledgement of a strengthened business position for Heartland.
BBBoom
Positive sign and hopefully we will see more raised ratings. To see the ratings of all banks: http://www.rbnz.govt.nz/regulation_a...redit_ratings/
Buyers seem to lining up now.
Last sale 88c.