we already got the up and another up .... away this afternoon and the rest of the week .... be patient
Printable View
Yes pleasing to see non-core assets being dealt with.
A very good result with nett profit before tax increasing from $5.6mil to $14.9mil.Getting traction.Core loan book stronger.The reduction in mortgage loan book means they are not chasing this market,but would rather put the money to more profitable loans,which makes sense to me.Great that they are already achieving lower funding costs.NTA at 90cents.EPS at 3cents is improving as we expected.2 cents dividend was a big surprise.I take it they passed on the "opportunities"that they were offered.Maybe they are paying the higher dividend as they are confident in their future earnings. Well done HNZ,New Zealand's only listed bank is on course to deliver all we hoped for.
Updating for the half year 2013 result. EBIT is not recorded in the released pdf. So we need to do some 'deconstructive analysis' on the released results to estimate what it might be. We start using the "interest income" from the income statement, and subtract from that "selling and administration expenses."
EBIT (high estimate) = $103.280m-$31.943m= $71.337m
Interest expense is listed as $56.250m.
So (EBIT)/(Interest Expense)= ($71.337)/($56.250)= 1.27 > 1.20
Result: PASS TEST (a first for HNZ)
SNOOPY
Updating this number for the half year HY2013 release.
Equity Ratio = (Total Equity)/(Total Assets)
Using numbers from the Heartland FY2012
= $381.091m/$2350.101m = 16.2%
This is a slight improvement on the full year position, achieved by continuing to modestly shrink the loan book and build some equity. This half year marked the payment a maiden first half special dividend. It is encouraging that the equity ratio has continued to improve despite this.
SNOOPY
The half year report last year did not provide the same level of disclosure as the full year report. This has proved to be the case again in HY2013.
Under note 12 and as of 31st December 2012, the percentage of deposits from the Canterbury region has reduced from 42% six months previously down to 36%. Overall I see this as a good thing, even if some market share in Canterbury must continue to be sacrificed to improve the overall term deposit risk profile.
Note 17c re-emphasises that the credit provision as reached with RECL (the real estate credit limit mangement agreement) has been fully utilised. This in turn means any further writedowns will directly hit the HNZ balance sheet.
I get the impression that rebalancing the account risk is still a work in progress.
SNOOPY
Maybe not the disenfranchised but those awful nasty traders who bought a month or so ago and now taking their profits ....good on them
Or maybe some who think result wasn't that good and decided to move on to something better as prospects might be better elsewhere
Maybe these disenfranchised are just a myth anyway!!!!
Sorry to go back to the AGM,however the chairman when speaking of dividends was very mindfull of how the market would react to HNZ at any time cutting the dividend.So I take it the 2cents is on going,[as for next year's interim].What we can start guessing is what the final in September will be.I guess it will be at least 2 cents,possibly more.Now that is fun,considering they want to leave plently of petrol in the tank.
Yes, although the underlying 'pace of movement' is not as fast as some think.
Growing banks tend to need new capital to grow. Most of the profitability improvements for the HNZ half year look to have come from a near $2m fall in personnel expenses and a $1.6m reduction in legal fees verses the corresponding prior period. While welcome, these are not the foundations of a growth model for the future.Quote:
And if yes, what is holding you back? Capital adequacy? Surely that is something that they will managed very carefully now that they are a bank and will be monitored closely by the Reserve Bank as well.
I think there is a difference between capital adequacy from a reserve bank perspective and capital adequacy from an HNZ company growth perspective. As it stands HNZ is fairly static (actully slightly shrinking) from a revenue perspective. And the shadow of more impairment in real estate has not gone away. The HY2013 report smacks more of 'kicking the can down the road' rather than finally addressing the impaired real estate issue.
Nevertheless it does look like there are plans to investigate selling off the difficult real estate package in one hit to clear the way going forwards. I am not sure if this is better or worse than just slowly working through the property portfolio.
SNOOPY
Growing banks tend to need new capital to grow. Most of the profitability improvements for the HNZ half year look to have come from a near $2m fall in personnel expenses and a $1.6m reduction in legal fees verses the corresponding prior period. While welcome, these are not the foundations of a growth model for the future.
I think there is a difference between capital adequacy from a reserve bank perspective and capital adequacy from an HNZ company growth perspective. As it stands HNZ is fairly static (actully slightly shrinking) from a revenue perspective. And the shadow of more impairment in real estate has not gone away. The HY2013 report smacks more of 'kicking the can down the road' rather than finally addressing the impaired real estate issue.
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SNOOPY[/QUOTE]
Snoopy thanks for sharing your detailed analyses on HNZ. Like Percy I was also at the AGM. And Percy please correct me if I am wrong but I think HNZ is focussed on being a small efficient bank. HNZ I think have researched the sector well and choosen to consentrate on
sectors were they feel they can have an advantage over the establised and bigger banks (and higher margens), think live stock and small to medium bussiness etc.
Therefore I expect slow growth and no need for capital in the forseeable future.
Forest
Yes this is all very true. From a potential yield basis alone I would be surprised to see HNZ retreat below 70c. But with revenue static and no clear growth path apparent [apart from rural finance which seems to be improving (I will let out a collective "Arrrgh!" here for those former PGW shareholders who had to watch and see their finance arm simply given away to HNZ)], I don't see a strong growth imperative for new shareholders to bid that price up above the 70 to 75 cent range.
I now expect HNZ to sit around the 70-75c levels for some time.
SNOOPY