I am told that Heartland are converting more of the enquiries about her (from the TV campaign) into loans than they anticipated.
Printable View
Being a lot smaller and being more mobile than the big Aussie banks ,I think Heartland can develop their niche sectors, and grow their ROE to be higher than the Aussie banks.
Heartland is being run by very experienced bankers,who will look at sectors that provide better ROE, without necessarily taking higher risks.
For example Heartland's REL mortgages enjoy about [from memory] 2% higher interest rates than standard mortgages.
The downtrend is 4 months old
http://i458.photobucket.com/albums/q...16062015_2.png
This is correct.
Reverse mortgage lending is a lot lower interest rates than say motor vehicle finance.
Heartland have a very diversified lending book,therefore the analysts should be comparing REL with ordinary mortgages.
And then they could say HNZ are achieving a lot more on their mortgages than Westpac.Correct but wrong.Different types of mortgages.
It is interesting to note TNR are running down their REL book to recycle the funds into motor vehicle lending,as it is more profitable.
There fore TNR's ROE will exceed HNZ's.
I almost sense the downtrend is doing reversal now, thanks to Warren Buffet and co....