Edited in the interests of fairness.
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Edited in the interests of fairness.
No surprises there.!
I expect it is the banks with the big exposure to the sector acting, and that would be ANZ with $11.3billion,BNZ with $7.87 billion and CBA who have increased their exposure.
Hope the Northland farmers have paid their PGW bill?.
Roger would you be so kind to post this on the ANZ bank thread,as there is a link there as to how ANZ act towards their own farmers.
Interesting that lending to 'rural' is up 11% from June 14 to December 14. Growth company, so should expect such an increase eh.
Profit margin on rural lending 3%-4% so if disaster does happen and they need to 'impair' an additional 4% of the loans over and above normal provisioning no money made from rural that year
Mind you they have only had $700k of impairments in rural in the 12months to Dec 14 (0.15% of assets) so must be pretty pleased with how loans are keeping up to date
Yes it does, very helpful thank you! I assumed it would've been a lot higher. Seems Percy's right about PGW being at greater risk from downturn - albeit it's not priced as a growth company. Certainly the likes of Scales, Seeka, Comvita provide nice counterbalance with offshore markets and benefits from falling kiwi :)
Think about when reverse mortgages become more mainstream, HNZ well positioned but then again I expect them to be taken over in next 5 years.
Unfortunately you will most probably be proved right.
I have a friend who has been comparing Iceland's recovery from their huge near bankruptcy problems,to Finland's.
Iceland have their own currency, while Finland's is the Euro.
Iceland have recovered, while Finland has not.
I kept thinking what would have happened, had NZ had currency union with Australia.We would have been tied to their policies.While we were adjusting to the "new "world after GFC Aussie were having their mining boom.
Taking it a step further, I think it is in our best interest to have strong NZ banks.Were are lucky having the choice of SBS,TSB,The Co-Op bank, Kiwi bank,and offcourse the only NZ listed bank, HNZ.
Kiwi bank taking over HNZ would most probably be the best option for New Zealanders.
Completely agree Percy, the country should own their banks. I use kiwi & heartland, + I have an acc with TSB that has been sitting around since I was a kid
HNZ's financial year ended on 30th June.
I think their announcement of 4 days earlier, on the 26th June ,rather confirms there has been no "blow out" of rural impairments,otherwise they would be needing to preserve capital,and not saying"as well as assessing possible capital management options to improve return on equity".That announcement was signed off by both the CEO and the CFO.
They also stated they will continue to investigate potential acquisition opportunities.
Agreed, Percy.
The Finns are not silly, or blind (re. Iceland). If successfully exiting excessive debt situations with sovereignty intact was a genuine objective, don't you think they would choose that option, hands down? There are other agendas in play in Europe.
Meanwhile National are taking NZ in the direction of more power for international capital/corporates (TPP) and fewer options for New Zealanders.
How about HNZ taking over Kiwi Bank?
Certainly is...
There is a saying which I often think is so true;
"Today is the day,that yesterday we worried about,and all is well."