Ha ha ...no sorry paid for shares online then thought scaling would reduce spp shares so didn't bother with spp
Printable View
Solid wall of 56 buyers at $1.80.
Dont know what i was worried about :cool:
Cap raise all but done and dusted
So big and small punters threw just under $200m into the Heartland coffers
Big vote of confidence in Heartlands future …..punters wouldn’t have fronted up if they thought Hesrland was a dog.
Expect share price to be over $2 by Christmas
Numbers on FM table looked pretty healthy …..where did the table go? ..it was a good un
I missed the table as well.. must have been a goodie.
HGH certainly isn’t a dog. Over $2 by Christmas? Over $2.20 even. Just need good market sentiment or strong October economic data.
Hard to see much positive macro news for the next 18 months. Loosening CCCFA restrictions could release some pent up demand, but on the flip side we should learn more about the Deposit Takers Act by the end of the year, which will bring additional costs to HGH, but not fully implemented until 2025.
But on what the company can control, it is doing a pretty good job. Absolutely sensational cost control during the year - you'd be hard pressed to find a company who held its fixed costs as well as HGH did. Receivables growth (excluding stockco) was up 15% - that's 2.5x the new lending by banks & non bank lending institutions over the same period.
Placement and SPP not the most popular or equitable model - though on this occasion it appears it worked okay (assuming full allocations are received in the SPP). Many of us got two go's at it (via placement and SPP). But if you read the conference call transcript mgmt do make some interesting comments on the mix of retail and insto. Apparently Heartland has only 15% of its shares held by institutional holders (excluding Rickets/Tomlinson), well down the list if you sort the nzx50 by insto support, and ave turnover well below where it should be.
I suppose the board reckons retail are the marginal buyer that ultimately influences price, and retail demand high yields, so introducing some more instos to the register would compress those yields and press the price up over the long term. I can see some merit in the theory. Particularly if you can get more kiwisaver instos into it, with the never ending flow of money that needs to be put to work firming up positions.
(But if the board really wanted to achieve that, they could have whacked Tomlinson and Ricketts into the SPP with the $50k max (lol yeah right), not allow retail clients in the placement, and purely allocate all that stock to new and existing instos. Clearly that would have never happened as those two individuals own a massive chunk of the company & are directors, clients would have been pissed, the SPP too oversubscribed, etc. Everyone would have been way grumpier.)
The Aussie acquisition will be interesting. Won't settle until Q4 FY23, or FY24, funding TBD if it happens (~50m). Probably won't be immediately EPS accretive (dilutionary probably if anything in the very short term). But its the operational synergy it brings, whereby lower cost retail funds replace inefficient wholesale/warehouse costs which are the biggest handbreak on StockCo and the wider Aussie business. It's not, as I believe, a go at recreating a Heartland bank V2 in AU...it's about funding, and optimising it. Might be a tad dilutionary in the short term, but value accretive medium and long term.
Reading the macro prudential papers published by board members in NZ is alarming by the complete lack of Maths in the papers... NONE...
banking had always been Maths and it appears the reserve bank and the members of the prudential consulting community just want the deposits covered as they are all employees not private enterprise.
T1 at 16 means all the major AUS banks are going to be looking else where for growth.
mate you operate at a different level and I suspect far higher wave length than I do
but I suspect you are right and thats why westpac wanted to ditch NZ...but couldn't hold a poker face
I have been for some time hesitant on what those new capital requirements could mean for HGH. The DRP nets back a good whack of capital every year but was getting just slightly anxious what would happen to payout ratios (or future capital raises) to accommodate new requirements. Perhaps this raise was that by stealth, if just in part. How the OZ acquisition is funded could also impact all this - if done out of current liquid facilities & could require lower payout, or capital raise in future (either via core, hybrid, or equity, or some combination). I had modelled these same outcomes re Stockco's acquisition, which are now addressed. Excluding the former point we seem to be in good stead, but the company has other another bridge to cross in due time.
I’m a happy hgh shareholder and I invest savings and term deposit money with them from time to time.
One thing I find weird is they are always spouting on about being a digital bank but everytime I open a term deposit or receive interest on term deposit they post me a hard copy statement by nz post at great cost to you shareholders.
I can do basic math and as a shareholder I would like to see them save costs but I’m wondering if the digital bank has heard about digital communications?
Even that dodgy Westpac bank lets me go online and choose to turn off paper statements and receive digital coms.
I assume there is no legal reason for the post as I also use rabobank for term deposits and I never hear from them via post.
Anyone know why the digital bank uses one of the most expensive, slow and dying delivery systems?
I get no paper communications from Heartland so I’m 99% sure I opted into digital communications only when I signed up. Can’t recall where or how I did that right now but will have a look shortly. I use the app for pretty much everything now and seldom log in to internet banking. I assume the setting for digital communications only is somewhere in internet banking as it is definitely not in the app.
EDIT: weirdly, I cannot find it there either so I suspect maybe there was a box to check for this, at the time I first opened each account, including term deposits. Send them a secure message once you are logged in, and ask them for clarification. If you have a current TD they should able to change the instructions for it.
Deleted..........
Thanks JAK, yeah I couldn’t see how to change this via app or online banking…it should be easy for customers to do this. Will drop customer services a message to change. I just raised it as I got an interest note in post yesterday and I’ve always found it weird they post. I should of been proactive earlier but now tough times are ahead I’ll get onto it.
Go to" My Settings" and select "update personal details" and ensure they have your email address.
Wonder why KFL doesn’t invest in HGH. Nice growth stock..? Didn’t they have ANZ in the portfolio right after the COVID lows? So there has been a bank in there once, even if for a short period of time
They have my email. I guess my wider point as a shareholder of a digital bank is I’d expect the digital bank to set its default communications to customers to be digital. There should be an option for customers to receive hard copies but this should be a cost to customers of say $2 or whatever the actual cost is…maybe $5 is realistic. I can assure you that if the bank was charging for sending me statements I would have found a way to turn them off by now.
Im a professional money shuffler and I use Westpac, rabobank, heartland and Jarden cash account and I find the heartland digital platform to be the worst. It’s getting better but it pretty fundamental issue when you can’t go on a digital banking app and update your communications preference in 2022
FF you nailed it "westpac wanted to ditch NZ"
Those capital reserves have to come from somewhere and the RBNZ reserve bank before 2020 zoned in on high bank dividends of AUS banks.
Bank stocks have been under pressure anyway since 2016.
They have become a trade except CBA.
If was obvious to hold ASX stocks as its a bigger growth market.
What could crash the party is what Sheldon commented on last night in that this is a supply side inflation fire and hicking rates when you dont have demand side inflation is sure to hit markets harder.
market might react to the hiking is a bad way but good for SP price discovery.
Surprised - I got the full amount in the SPP, no scaling at all. I applied direct to Link Market.
re: Heartland's back office ... with reference to Perky's 15909 / 912 / & 915 together with Just A Kiwi's 15910
Basically; it is a disaster.
The "self service" function within Internet Banking is not active. Yet, the App states that in order to change 'anything' one is to enter Internet Banking in order to do so.
It took me 5 weeks ( Secure Messages and direct e-mails ) to get some response. Each,(when it came), response came thru from a different person. No follow on ... ! And, no action.
Finally, I rang Newmarket and told them what it was that I wanted to do.
Yes, was the response; but since I had two account numbers ( long time customer ); how about simplifying things. As a result, a new log-in I.D.; a new Password, together with a reduction in duplication.
Since I am resident on the 'rock' to the west; I am reliant on "smart' systems in order to keep the NZ aspects up to date. Heartland's back office has a long way to go to get any more than 3 stars.
Long time SH in HGH and HBL. [ didn't do the SPP - have enough at $1.20 ]
regards
Yottie
Agree Yottie. like I say Im happy with hgh shares performance but if they want to become a digital bank and enter Australia via their new initiative they need to get better quickly.
Heartland have great products but delivery and ease of use needs to improve. It can’t be that hard..there are lots of good digital banking experiences out there now.