2012 Update on ANZ's Position
Quote:
Originally Posted by
Snoopy
Just been looking at the latest (FY2011) ANZ annual report Percy.
The balance sheet on page 88 shows net assets of $37.954m. Net loans and advances are listed on the same page $396.337m. So I get an equity to loan ratio of:
$37.954m/$396.337m= 9.58%
ROE based on end of year equity was
$5.873m/$37.954= 15.5%
Of course the true ROE figure uses the average equity over the year
Just been looking at the latest (FY2012) ANZ annual report. With Heartland now a bank, it is always good to look over your shoulder and see what the competition are doing.
The balance sheet on page 74 shows net assets of $41.220m. Net loans and advances are listed on the same page $427.823m. So I get an equity to loan ratio of:
$41.220m/$427.823m= 9.63%
ROE based on end of year equity was
$5.661m/$41.220m= 13.7%
Of course the true ROE figure uses the average equity over the year. But for ease and consistency of calculation, this is the way I like to do things.
Return on equity seems to be slowing as a result of tougher conditions in the whole banking sector. So maybe that cash issue to shore up the Heartland balance sheet is a bit closer?
SNOOPY
Update: "The Aussie bank Problem"
Quote:
Originally Posted by
Snoopy
Originally Posted by percy
"Start worrying about Aussie banks sauces of funds.They appear to have a problem."
Taking ANZ as an example Percy, I don't believe the picture is as bad as you paint it. Take a look at the latest 30th September 2011 Balance Sheet. There is an item on there called 'bonds and notes' that is unrelated to any shareholders equity that ANZ may have built up. It accounts for $56.551m which when added to the $37.954m of shareholders equity must make ANZs 'total loan capital' to 'loans outstanding' rather superior to Heartland's position.
An update on the position in Australia that Percy in particular is very concerned about: Bonds and Notes (see Note 27) have increased to $63,098m. Add that to shareholders equity of $41,220m and total available capital to ANZ is now $104,318m. That is a 10% increase on the $95,404m available at the end of the previous financial year. The Aussie crisis is receding!
If you regard the bonds and notes as 'quasi-capital', then ROE for ANZ drops to:
$5.661m/ $104.318m = 5.4%
Realistically, IMO, this is the kind of return you should be looking at as the long term potential of Heartland Bank.
Heartland bank had equity of $343.7m at last balance date. So assuming all of that equity can be worked we are looking at a long term profit potential of:
0.054 x $343.7m = $18.6m
So Heartland are overperforming the benchmark by quite a long way in FY2012, with a $23.6m profit. Of course with a bit more shareholder capital, perhaps $23.6m is sustainable long term?
SNOOPY