Quote from: ValueNZ on Feb 18, 2025, 02:42 PMBloody great call Beagle.Thanks. Just keeping my nose to the ground and sniffing out what's a good feed and what's corporate B.S.
Good work sniffing that one out in advance
QuoteThat seems insane. Are customers being charged significantly more for the vehicle to cover this risk? MinimokeGross recklessness and the answer is No, they're not charging more.
QuoteNo Snoopy, take the rose tinted glasses off mate. This shocking result is a direct result of dumb products like Heartland extend and in general a very poor business writing strategy. They completely lost their way and forgot the fundamentals of asset finance lending. However it now looks like they have seen the light and changing their ways: 'Heartland Bank had historically taken a supportive and judgement-based approach to helping customers in arrears repay their loans..... As the economy has deteriorated and Heartland Bank has grown, its arrears management practices, while remaining supportive, require a more proactive and prescriptive approach. As a result, Heartland Bank has enhanced its collections, recoveries and write-offs strategies for its Motor Finance portfolio. Changes have included the adoption of a more prescriptive repossession policy. This sees Heartland Bank implement recovery action sooner in the collections cycle for customers in arrears unable or unwilling to work with Heartland Bank to develop corrective solutions. Recovery rate improvements are already flowing through'Not much of a reduction is it ! Plenty more pain to come.
There were warning signs 18 months ago that this day was coming. I posted a lot about Heartland extend and how it was covering up bad accounts. Also remember the crap story about the debt collections team being on holiday or sick leave etc....
Anyways, they have flagged another $8m in write offs and $5m of specific provisions if the economy doesnt pick up. I would say it is highly likely these are added in the 2nd half. Todays write offs only reduce non performing loans from 3.65% to 3.40%.. if you believe they wrote a whole bunch of bad historic loans, then you should conclude that there is still more crap on the books that will never be repaid
Quote from: KW on Feb 18, 2025, 01:07 PM"It aint what you dont know that gets you into trouble, is what you know for sure that just aint so". Mark Twain
Don't buy shares in a downtrend, in the belief the market is wrong and you are right.
Quote from: Basil on Feb 18, 2025, 10:36 AMI warned at great length after attending the annual meeting and also several times subsequently, the first half would be an absolute shocker.Bloody great call Beagle.
Honestly the caliber of management in terms of risk management is, as previously articulated, very poor.
I am not surprised by this appalling bad update. Plenty more pain to come as they try and realise their so called non strategic assets.
Quote from: lorraina on Feb 18, 2025, 12:32 PM"There are known knowns, things we know that we know; and there are known unknowns, things that we know we don't know. But there are also unknown unknowns, things we do not know we don't know."
Author: Donald Rumsfeld.