Nice to see some decent volume back in the stock today.
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Nice to see some decent volume back in the stock today.
But its not going up
Seeing SKC get away with 'normalised' things which has a positive imoact on the share price and gives everybody the warm fuzzies I think Simon has to start 'normalising' things as well and report say $25m this half in the headlines
To keep it going they need something new ...... how about "Normalised take up of home equity release loans' - always higher than actual of course but if things had gone to normal expectations $25m would have been the number
Like it
I am curious about this ever improving net interest margin of Heartland. Is there a way to calculate what is happening to the net interest margin without waiting for Heartland's annual slide presrentation?
The reserve bank has a collective margin table for all NZ banks
http://www.rbnz.govt.nz/statistics/tables/s20/
For the June 2014 quarter they list the net interest margin averaged over all 23 registered banks. So I guess those banks have suppied the reserve bank sufficient information to calculate it. But is there sufficient information on the net for Joe share investor to do the same?
'Investorwords' defines the net interest margin as follows:
"The dollar difference between interest income and interest expenses, usually expressed as a percentage of average earning assets"
(http://www.investorwords.com/3249/ne...st_margin.html)
The Heartland disclosure statement for FY2014 is here.
http://www.heartland.co.nz/uploadGal...nt%20Jun14.pdf
Note 8 from the Heartland declaration has:
1/ the 'total interest income' at $200.141m and
2/ the 'total interest expense' at $93.719m
The dollar difference on those two is $106.442m.
Now I can't see what the 'average earning assets' are, and these would not normally be declared at 'snapshot report time'. But if you go to the balance sheet, the 'end of year financial receivables' (a proxy for the average?) are $1,985.119m.
$106.442m / $1,985.119m = 5.36%
That is rather higher than the 4.44% quoted in Heartland's own chart. But not far enough out to indicate that I am totally going down the wrong road.
Since net interest margin seems to be one of the keys to Heartland going forwards, can anyone make a better fist of this calculation than I have?
SNOOPY
two suggestions Snoopdog -
Firstly, take the average of opening and closing receivables, rather than just the closing.
Second, and I find this one easiest - take their word for it when they say 4.44%
I have spoken to and asked questions of the following Heartland people.
Bruce Irvine,Director.Returns phone calls and gives straight answers.
Simon Owen,CFO.Plain clear answers.
Craig Stephen.Has since left HNZ.Went out of his way to give me clear answers,and guidance.
oh percy .... Allison will be shattered that you forgot her
still have time to send her a red rose for valentines day