1 Attachment(s)
Apples and Oranges, Apples and Oranges, Bananas.
Quote:
Originally Posted by
Snoopy
...
At least 90 days past due $19.518m
Individually impaired $53.1m
Restructured assets $3.994m
That sums to $76.712m. Take off a provision for impairment of $34.214m and I get $42.498m.
However that $76.712m does not correspond to the:
"non-core property assets comprised net receivables of $25.6m and investment properties of $61.5m." (page 5 in same report)
which sum to $87.1m. Anyone know why the difference?
...
BECAUSE
NOT ALL
non-core property assets
are
either at least 90 days past due;
or individually impaired;
or restructured.
AND
NOT ALL
assets
that are:
either at least 90 days past due;
or individually impaired;
or restructured.
are
non-core property assets
Attachment 5918
Best Wishes
Paper Tiger
Customer Concentration Test HY2014
Quote:
Originally Posted by
Snoopy
The half year report last year did not provide the same level of disclosure as the full year report. This has proved to be the case again in HY2013.
Under note 12 and as of 31st December 2012, the percentage of deposits from the Canterbury region has reduced from 42% six months previously down to 36%. Overall I see this as a good thing, even if some market share in Canterbury must continue to be sacrificed to improve the overall term deposit risk profile.
Note 17c re-emphasises that the credit provision as reached with RECL (the real estate credit limit mangement agreement) has been fully utilised. This in turn means any further writedowns will directly hit the HNZ balance sheet.
I get the impression that rebalancing the account risk is still a work in progress.
The half year report for HY2014 (to 31st December 2013) is as much of interest for what it doesn't say than what it does say.
In contrast to last year, Note 13 on 'Borrowings', makes no mention of the relatively high proportion of deposits from the Canterbury region. Perhaps many of those Cantabs with deposits followed Percy's advice and used their deposit money to buy Heartland shares when those deposits matured? In any instance the overall deposit book has shrunk very slightly from the full year balance date. So the rebalancing of regional risk doesn't reflect a lot more money coming in from other regions and growing the deposit book overall. I would have expected the overall deposit book to strengthen as Heartland's credit rating improves. But I can't see any real evidence for that in the HY2014 report.
The previous half year report had a section headed 'credit risk and asset quality'. That heading is no longer there in the latest HY report. Instead the 'Asset quality of Finance Receivables' information has migrated to the 'Finance Receivables' section. Of particular note is the fall in 'At least 90 days past due' receivables down to $19.5m, from $49.2m a year previously.
The 'Provision for impaired assets' has its own stand alone note (17).
The RECL (Real Estate Credit Limited) agreement for difficult property assets, much discussed in the HY2013 report, has been brought back in house. Overall though this report does not go into enough detail to get a great feel for customer concentration risk.
SNOOPY
2 Attachment(s)
A response in several images
Quote:
Originally Posted by
Snoopy
Your answer must be correct PT, as there is no other logical way to reconcile things.
Attachment 5922
Quote:
Originally Posted by
Snoopy
However, I did think that the reason the 'non-core' property assets became 'non-core' was because they were difficult assets to manage. ' Difficult' in one of these the senses:
1/ Being at least 90 days past due OR
2/ individually impaired; OR
3/ restructured
I can't see why property assets that weren't in those three categories would get thrown in the 'non-core' box. But I guess subsequent buying interest in those property assets by turning them into cash made a lie to the original 'non-core' diagnosis.
Attachment 5923
Quote:
Originally Posted by
Snoopy
Yes, but if that were true would you not expect the sum total of all 'difficult assets' ($76.712m, supposedly including the non core property assets) to be greater than the declared value of 'non-core property ' assets alone ($87.1m)?
Attachment 5921
Best Wishes
Attachment 5924
When you Understand This - Then You Will Have Achieved Enlightenment
Attachment 5926
Best Wishes
Paper Tiger