And ANZ
Your point being?
Printable View
Decide for yourself.
I have found in any field you do get better advice from a specialist,whether it is your car,your body,and I would expect audit is the same.
I wish I could have faith in auditors and trustees after the GFC but what we leaned as the GFC unfolded was that most provisioning was grossly inadequate when the "custard" hit the fan and the situation many highly leveraged dairy farms are currently in is analogous to a GFC type situation. I find it very interesting that almost every other bank is dramatically ramping up their dairy loan provisioning other than HNZ...hmmm.
Ditto, no faith in auditors....fudge to make things look good or look at places that makes them feel good.
In this instance , the Company seems to know best and so far have been spot on . Bankers know Banking ...............accountants ..well , they can be creative!
HNZ certainly more accurate than the Guru of Doom and gloom.:D
So most of the other banks that are being conservative and really ramping up dairy sector loan provisioning have it wrong and HNZ are right...yeah that makes perfect sense. Time for a Tui :)
Yeah they probably would mate. After all what does excessive LVR average loan ratio's really mean and if the guy in the fancy suit paid a seven figure salary says dairy is recovering next year who is he to argue especially seeing as said suit is paying the wages ! We're supporting our clients through this...its such a wonderfully politically correct approach to take isn't it.
BNZ reported this a month or so ago
The bank's charge to provide for bad and doubtful debts surged $42 million, or 91.3%, to $88 million. The rise was attributed to an increase in collective provision charges, mainly due to the outlook for the dairy industry.
http://www.interest.co.nz/business/7...-rise-expenses
Yeah that's part of what I was referring too, thanks for posting mate. Here's another article that quite explicitly expresses the forward view that loan provisioning is in for a huge increase if dairy stays low
http://www.interest.co.nz/rural-news...xtended-period
Those obsessed with life in the rear view mirror and who accept recent loan provisioning at face value can't see a problem whereas those who spend time trying to look around the corner ahead see trouble coming...two different perspectives. No telling people looking backwards they need to change their point of view I suppose... Must be that auditor training, like a beagle at the airport sniffing out problems ahead, (with apologies to Snoopy) :)
I think Heartland have had a good look at the loans and made the right provisioning .
Dairy on the up , all good ....
http://www.nzherald.co.nz/business/n...ectid=11553380
http://www.interest.co.nz/rural-news...-enough-enable
Maybe not enough to enable Fonterra to meet its $4.60 forecast and that's still well adrift of the mid five dollar range experts seem to agree is what's necessary for farmers to break even.
How many more years can banks keep supporting loss making dairy farmers by lending them more and more money to stay afloat ? (Good question to ask your directors at the forthcoming annual meeting).
That guy flip flops a lot , just remember they invented economists to make weather forecasters look good.
http://www.interest.co.nz/rural-news...5-less-urgency
Ah so - I get it knowQuote:
Paper Tiger the other day
Interestingly 90+ day overdue loans on rural as gone from $17,904K to $11,704 in the last three months, possibly as a result of some/many them being reclassified given that Heartland are supporting dairy in these difficult times.
You take an overdue/problem loan and repackage it up as something new under the guise of support - it becomes a 'new loan' so no longer overdue (even though the borrower still owes heaps)
Tricky
To be fair that was some time back after four successive GDT gains and many were starting to feel more optimistic. Reality has bitten since and we are still far short of what's required for farmers to break even.
I'm sure you know finance companies and banks have been using this creative accounting method since Adam was a boy and its most especially useful during harsh times like the recent GFC. Good of you to point out to others though and as you know this earns them nice fat refinancing and admin fees too so makes the books look better in more ways than one...until such time as they can't repay their loan that is. Harmoney clip the ticket for (IIRC), a hefty 6% fee on their refinancing, perhaps something of a conflict of interest with investors looking for easier loan admin and loans running their full term ?
Ben Russell C.E.O of Rabobank to join HEARTLAND according to Interest .co.nz.Head of Rural Banking
Good spotting beetlls
Rabobank NZ CEO departs for Heartland Bank
Heartland seem to be able to attract top talent.
Not just talented investors.!!!!.lol.