Honestly, don't know what they were talking about...figures, debts, ex finance company n etc. but guess what..HBL net profit is around 50 m plus n 9 cents dividend in year 2017...that is what matter n certainly HBL will get better from now on...
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In the interest of accuracy you refer to the Ashburton Permanent Building Society. CBS was the entity made up of the merged Permanent, it's home town twin the Ashburton Loan and Building Society and the Sydenham Money Club.
At the time of the most recent merger the provincial accountants who ran CBS decided that they wanted to step it up to play with the big boys. Why they chose to marry up with MARAC and its problem step children of George Kerr, PGC, and the MARAC property loans is a mystery which is still unexplained.
Heartland is a bit of an outlier in the finance world. A second tier bank run from Auckland with two retail branches in its Canterbury heartland.
Boop boop de do
Marilyn
You may be best to take this up with Heartland Bank directly, as their presentation of 2-6-2016, page 5 headed "Evolution of Heartland" clearly has what I posted.
Your unhappiness with CSB joining up with Marac and SCBS remains,however I don't see it worth dwelling on.
As for branches ,I feel HBL positioning themselves in online platforms will serve them better than costly branches.
I just wanted to reiterate that at $1.25 Heartland is trading on a 10% gross yield for FY17 at the consensus of 9cps in dividends. Not bad for a company doing niche lending at twice the margins the major banks achieve. Of course you will see some bad debts as 4.4% lending margins don't come without risk but the management here are doing a good job and I for one am a happy holder and will add if it retreats sub $1.20.
The history of any company, its antecedents and major events, is important to the extent that it helps one to understand the present situation of the company, the journey so far and how this may affect the likely future performance.
An obvious for instance of this is how the corporate memory of the Ansett Collapse has influenced Air New Zealand to make the recent poor decisions that are the current Virgin Australia Disaster.
Looking forward the current situation with the dairy industry will obviously have a greater effect on the short & possibly medium term profitability of Heartland Bank the longer it lasts, as will the decisions and impairments that are made in other areas of lending.
However the Bank is well capitalised, the management are well aware of the situation, being open and communicating their updated assessments as the process unfolds.
It is probable that it will survive. :mellow:
I will reiterate the important of remembering that dairy is just one string in the Banks bow and at different times different sectors have their ups and down.
This is what being a Bank is all about, spreading and managing risk for the benefit of their shareholders and creditors.
Best Wishes
Paper Tiger
PS I presume you have all been 4% for a one year term-deposit as well?
Hope you didn't mind me adding the missing word PT - and yes I was offered the 4% rate too. Great timing, as my company has a $500k trust fund TD maturing with ANZ today that we wish to reinvest. The best ANZ will do (after being advised of the Heartland offer) is 3.55%.
That will be based on the credit ratings I guess - ANZ's Fitch rating is AA- while Heartland are BBB (stable).
We do deposit our own Call funds with Heartland but will probably leave the TD with ANZ as that money is not ours. Not worried at all about Heartland -but a deposit with ANZ is probably easier to explain should the necessity arise.
Yes, easier to explain that the approximate probabilityof default over 5years with Heartland is 1 in 30 (according to its credit rating) but with ANZ it's just 1 in 300.
I have HBL and ANZ but will be keeping my money in ANZ. No need to own HBL and give them what little cash I have, at least not until its credit rating increases.