As long as you have done your best, for no one can do more.
Quote:
Originally Posted by
Snoopy
Now we come to the most important page of the results announcement, our once a year window into asset quality. Looks like the reporting format has been changed, which makes year on year comparisons difficult. However, I read the total of the Grade 6 'monitor' assets to have increased from $185.315m to $198.370m. This is not a very good position to be in. I note on that same table there is a provision for collectively impaired assets of $15.961m which is up from $8.032m in FY2012. But that provision increase is not enough to cover the accompanying increase in 'monitor' assets.
Meanwhile the sum of Grade 7,8 and 9 assets is now $67.313m down from $80.927m, which is a positive. Overall though 'problem assets' (sum of grade 6,7,8 and 9) have increased slightly. I will have to take some time to think through how all this relates to the overall equity position of HNZ. But I was hoping for a bigger improvement in the doubtful loan book than this. I don't think I will be putting any money into HNZ based on this debt book result alone.
SNOOPY
Somewhere in KPMG accountants are crying all over their abacus.
"What is the matter?" they are asked.
"Snoopy did not understand the Credit risk stuff in last years HNZ report, so we rejigged it a bit this year to help him and even added some extra notes in the Provision for impairment sub-section. We were sure he would get it this year. But look he has posted this. We don't know what else we can do!"
Best Wishes
Paper Tiger