Hahaha, it was always safe.Now she can have a new one and soon a new kitchen as well:p
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The Banking Licence is a big milestone and excellant news for Christmas.
There was an interesting item on Sharechat dated 13th Dec. - "ANZ Bank's UDC Finance unit lifts FY profit by 31% on lending growth."
What I found particularly interesting was that the profit of $37.9 million was achieved on a lending book of over $2 billion. I assume that this is just over the $2b as the article said "UDC's lending book rose 3.5% to over $2 billion"
This is pretty similar to HEARTLAND BANK which has Net Finance Receivables of $2.078 billion.
Surely "THE BANK" should soon be producing a similar result which would make for juicy earnings of 9.75cps ($37.9m divided by the 388,703,975 shares on issue). Currently, HEARTLAND BANK has total assets of $2.65 billion, which would suggest that it has the capacity to substancially improve on this result.
These are my thoughts and I could be quite wrong (but I hope not). :D
IMO the HNZ banking licence is a stake in the ground and good news for Christmas. It isn't a hyperbole event. And it doesn't address any of the underlying issues of running a small finance institution.
How much does UDC lend on farms and to households? Also UDC is a wholly owned subsidiary of the ANZ bank with a credit rating of AA-. The credit rating of Heartland is still BBB-. In short I don't think you should expect Heartland 'whatever' to outperform UDC.Quote:
There was an interesting item on Sharechat dated 13th Dec. - "ANZ Bank's UDC Finance unit lifts FY profit by 31% on lending growth."
What I found particularly interesting was that the profit of $37.9 million was achieved on a lending book of over $2 billion. I assume that this is just over the $2b as the article said "UDC's lending book rose 3.5% to over $2 billion"
This is pretty similar to HEARTLAND BANK which has Net Finance Receivables of $2.078 billion.
Surely "THE BANK" should soon be producing a similar result which would make for juicy earnings of 9.75cps ($37.9m divided by the 388,703,975 shares on issue). Currently, HEARTLAND BANK has total assets of $2.65 billion, which would suggest that it has the capacity to substantially improve on this result.
What has happened today is akin to going out and screwing a 'GT' badge on your car. It won't make your car go any faster. Maybe it might impress some granny peering over your back fence. But she won't be vying to get into your passenger seat. All her dough is done already thanks to the finance sector collapse at the 'Brokenheartland Money Club'.
SNOOPY
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What has happened today is akin to going out and screwing a 'GT' badge on your car. It won't make your car go any faster. Maybe it might impress some granny peering over your back fence. But she won't be vying to get into your passenger seat. All her dough is done already thanks to the finance sector collapse at the 'Brokenheartland Money Club'.
SNOOPY[/QUOTE]
No old ANZ Cortina with a GT badge.Latest model bank tourer with all the bells and whistles.NZ owned bank serving NZ "Heartland".A true throughbred.In fact a good replacement for that National bank one ANZ sent to the pet food factory.
No old ANZ Cortina with a GT badge.Latest model bank tourer with all the bells and whistles.NZ owned bank serving NZ "Heartland".A true throughbred.In fact a good replacement for that National bank one ANZ sent to the pet food factory.[/QUOTE]
Ole Snoopy's string and plywood bi-plane crashed today but thank goodness, he seems ok judging by his mutterings!
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Ole Snoopy's string and plywood bi-plane crashed today but thank goodness, he seems ok judging by his mutterings![/QUOTE]
Heartily agree.!!!!! lol
Agree whole heartedly, STC.
Sharetrader will not be sharetrader without posters like Snoopy who provides critical balance and analysis. Meant sincerely, Snoopy - keep challenging as most tend to be rather myopic when it comes to their favorite stock.
Christmas is approaching so Snoopy will need to get his plane up and flying again to guard us against the red baron?
At the AGM someone questioned HNZ's low profile.Question was answered; that until they had the banking licence it was pointless spending money advertising Heartland Building Society.However, there would be no low profile when they started promoting Heartland Bank.Once Heartland Bank advertising starts, then I would expect more interest in HNZ shares.We will see half year result in February,and I expect each announcement will attract more interest. A listed NZ Bank,with growing earnings,paying a dividend,sound management, [who have done what they said they would do],excellent equity ratio, should see HNZ coming up in more investor's horizons.
Well said Percey, and with their banking licence now it seems likely that HNZ funding cost will reduce.
Reduce funding cost is likely to increase margins and happier share holders.
With just over 200k on the buy side total , and over 900k at 69 and 70 cents alone i thought there may have been more zing on the buy side with the banking licence in place but still early days.
The resistance at 70c is proving a tough ask to break. I was sure the banking licence would do the trick, but it looks like it is going to be a slow grind rather than a sprint.
Saw an interesting comment from HH Green i read today that they were surprised by the lack of movement upwards, they were expecting 7c-10c apparently.
You have to be fair to Baddarcy, his post was on the 27th of Nov before HNZ broke 0.71.
I aren't sure why people would be selling at this level though. I won't even be thinking about selling for the next long while as I think the company has a very bright future now the banking license is achieved. Innovative products in a market that appears to be at the bottom of its cycle... improving finances, improving stability, increasing profits... realistic management... why sell? These guys could be hitting 100's of millions in profits in 5 years or so. That translates to a damn good dividend. At least a medium term hold for me, long if they keep doing what they say.
*my last post of "100's of millions" is a personal opinion based on potential growth for their new products, nothing to actually back that up!*
I can't say I'm happy about ANZ dropping their National Bank Brand. But I am not unhappy enough to close my National bank account and move to Heartland yet!
I was surprised at new RBNZ governor Wheeler breaking the Reserve Bank rules and declaring Heartland a bank after little more than a year in business. I guess as the new governor, he can now write his own rules. But despite stepladders being dispatched all over the country, so they can hand write 'bank' next to the up to now underdressed new 'Heartland' (blank) green and black livery, you can be sure of one thing. Heartland bank is not too big to fail. That under the mattress bank will be hard to dislodge as a safe haven for some OAPs.
SNOOPY
PS Just noticed something. If they had officially called themselves 'Heartland (blank)' up to now the paintbrush transition would have been as easy as painting out the now superfluous 'l'!
Disclosure.A family trust I am a trustee to recently brought some ANZ shares.Trust also increased it's holding of HNZ.Losing National Bank brand is a sad day.
I think the delay in granting the HNZ bank licence was because new RBNZ governor was not wanting a "black mark" early on his watch.
From what I understand you do not just apply for a bank licence on the form you posted.A lot of discussions go on before
"you are invited " to submit an application.HNZ have spent a lot of money paying for consultants to prepare the information RBNZ have wanted. [ May be more correct to say RBNZ consultants.]
The give away that all was on track was given 10/4/12 when Sean Kam resigned as CFO.Those who knew his backgound knew he had done the job.
Plenty of resistance at .70c and seems to keep growing, I wonder who is selling .. lot's of small players or someone gradually offloading a large chunk?