HNZ is a tiny little bank:
ANZ $134B of liabilities;
ASB $71B of liabilities;
HNZ $3B of liabilities.
Best Wishes
Paper Tiger
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PT's question.
Do we actually lend anything to anybody or borrow anything from anyone?
Answer;Yes and do it well.!
Chris Lee does another rave on Heartland
http://www.chrislee.co.nz/taking-stock
But he does say - I have never believed in banks returning capital. My view is they can never have too much capital and should accept lower returns on equity as the offset of greater balance sheet strength.
I agree with Mr Lee
I think it is time we remembered Kerry Packer.Kerry liked money to be earning its way.Kerry had just brought another business and was talking to it's CFO.
"What's this money hidden in the accounts"?
"It's our rainy day fund."
"Look outside son,it's p.ssing down."!!!!!!!!!!!!!!!!!!!!!!!
Man from MTF on the radio today says HEARTLAND been doing due diligence for the last few weeks.
We need to keep pace with developments as to how dairy farmers are coping. It is very relevant to Heartland
If things do get bad Heartland will have increased bad debts which will affect profitability. Even a couple of million is significant relative to a $50m earnings base
Heartland themselves did say this re Rural a few months ago: low impairments for FY15 and include adequate provisions for the dairy sector- expect higher level of impairments for FY16
Always good to keep abreast of new developments in the sector . However the RBNZ obviously sees the concentration of risk with the big 5 , hence the stress test .
I note HNZ was left out of this .
http://www.nbr.co.nz/article/reserve...loans-b-181416