HGH - Heartland Group Holdings

[Basil]

How low did it get LEK ?

[winner (n)]

Years ago I bought sone HBL at 98 cents and price straight away. That 98 was an all time high ....I laid claim to being the only person in the whole world to have lost money on Heartland

Only held that honour for a few days lol

[snapiti]

I suspect an excuse, the company will use again, for bad debt will be they did not have the human resources to chase up the money owing.......hmmmmmmm will that is bound to happen when your pile of bad debt is increasing rapidly but still a smoke n mirror answer.
My bet is the SP is going to have an eight in front of it 

[Basil]

Extract from NZX 10 biggest winners and losers on the NZX this year, (link to paywalled article) is in the HLG thread, 6th biggest winner up 58.6% this year.

The top 10 losers were KMD Brands minus 48.67%, THL (48.65%), Spark (42.5%), Fletcher Building (38.7%), The Warehouse (33.9%), Heartland Bank (29.6%), Ryman (27.8%)...

Just look at that group of losers.   HGH is right in there in the same wooden spoon league with all the other losers and their fiasco's that have unfolded with Fletcher Building, the Warehouse and Ryman.  Talking about keeping "illustrious" company with fellow "top performers" lol.

All have been in a downtrend caused in no small measure by huge mistakes made by management.
What does the legend KW say about drinking and buying in a downtrend !  Don't be a bloody idiot and do that.  Thanks for your excellent posts on here and awesome TA expertise KW.  You've certainly helped my portfolio performance over the years and this year has been no exception.

[Syd]

Well this is New ! I clipped the bit where he apologised to Basil, nevermind !

   
Heartland Group Holdings Ltd
Reflecting on 2024 at Heartland

Dear valued shareholder,

As 2024 draws to a close, I want to take this opportunity to thank you for your continued support of Heartland Group Holdings Limited (Heartland). Your confidence has been instrumental in helping us achieve important strategic milestones this year, and we look forward to building on this progress in 2025.

Reflecting on this calendar year, we have achieved several significant accomplishments – most notably, the successful acquisition of Challenger Bank Limited (Challenger Bank), now Heartland Bank Australia Limited. This made Heartland Bank Limited (Heartland Bank) the first New Zealand bank to purchase an authorised deposit-taking institution in Australia. This acquisition provides a platform for the future of our Australian business, enhancing opportunities for growth, profitability and an improved return on capital. A key driver of success is the transition from Heartland's sole reliance on wholesale funding toward more cost efficient deposit funding, which is well advanced. 

At the end of 2023, in New Zealand Heartland Bank also completed a major upgrade of its core banking system. This will continue to assist Heartland Bank's transformation journey to better meet the needs of its customers today and into the future.

Another milestone this year was the publication of Heartland's inaugural Climate Report, which underscores our commitment to sustainability and transparency. The Forsyth Barr Carbon, Environmental, Social and Governance Ratings Report published earlier this month analysed 9,500 data points from 61 leading NZX-listed businesses, of which Heartland was pleased to be recognised as a significant improver.

In a trading update to the market on 26 November 2024, we noted the volatility experienced during the financial year ended 30 June 2024 (FY2024) has continued during the first half of the current financial year (FY2025). Heartland will remain focused on credit quality and is optimistic about recovery during the second half of FY2025 as interest rates reduce and credit demand strengthens. Reverse Mortgages continue to perform well in both countries and confidence is returning within StockCo, which has shown good signs of growth this quarter.

Heartland continues to hold firm to its stated ambitions for the financial year ending 30 June 2028 (FY2028), including the delivery of an underlying return on equity between 12-14% and an underlying net profit after tax (NPAT) of $200 million by the end of FY2028.

We expect to provide FY2025 NPAT guidance as part of our interim financial results in February 2025.

As we look ahead to the 2025 calendar year, we remain confident in our strategic direction and the future of Heartland.

Thank you again for your trust as a Heartland shareholder. On behalf of the Board, I wish you and your loved ones a joyful holiday season and a happy New Year.

Yours sincerely,

Greg Tomlinson
Chair, Heartland Group Holdings Limited

[winner (n)]

Weird but nice

Seems our Greg feeling a bit guilty about how he's treated shareholders this year ... and reflected on his performance t the Annual Meeting

This could well be a prelude to his resignation as Chair and retirement

[Basil]

I have adjudicated on this briefly and it was a very easy decision. The inaugural 2024 Beagle dog "YEAH RIGHT TUI" wooden spoon award for quote of the year for utter corporate B.S. from management and boards this year both go to Heartland.

Firstly, the board award to Greg Tomlinson for his "more slippery than an Eel" statement under intense questioning from this dog during the annual meeting to effectively evade all further questions, "I am very mindful of time constraints"  Secondly to Leanne Lazurus for her comment to me after the meeting, "I can assure you we haven't created a good bank - bad bank situation here" I am most grateful to both recipients for the very high level of clarity they provided to me around my personal shareholding.  I'm calling it, reported profit for 2025, (not their B.S. normalized number), will be an absolute shocker.   

Moving on to more positive things and awards, the inaugural 2024 Beagle dog Golden Bone award goes to Hallenstein Glasson.  Record profit in the worst recession in 33 years, and sales for the year to date up more than 10%.  Imagine what a golden performance is coming when the economy starts improving !

Finally, the most coveted inaugural Beagle dog platinum award for the hardest work and most dogged performance so far this decade goes to Turners.  Who would have thought a company like them could post one record profit after another every year so far this decade through the Covid years and then the deepest recession in decades.  Those guys are as tough as diamonds and worthy winners.  Expecting a platinum performance from them for the rest of this decade with ongoing record profits year after year going forward. Well done to Todd, Aaron, Tina and team for a truly "dogged" performance. 

[Mos]

Weird but nice

Seems our Greg feeling a bit guilty about how he's treated shareholders this year ... and reflected on his performance t the Annual Meeting

This could well be a prelude to his resignation as Chair and retirement

I read Greg's year-end message differently - as Chair and major shareholder, he is focused on driving performance to achieve potential despite the rocky road over the last year. Fair to say resigning at the first sign of adversity would not have got him to where he is. 2025 will be an interesting year for Heartland and not plain sailing for sure.

[Dolcile]

I have adjudicated on this briefly and it was a very easy decision. The inaugural 2024 Beagle dog "YEAH RIGHT TUI" wooden spoon award for quote of the year for utter corporate B.S. from management and boards this year both go to Heartland.

Firstly, the board award to Greg Tomlinson for his "more slippery than an Eel" statement under intense questioning from this dog during the annual meeting to effectively evade all further questions, "I am very mindful of time constraints"  Secondly to Leanne Lazurus for her comment to me after the meeting, "I can assure you we haven't created a good bank - bad bank situation here" I am most grateful to both recipients for the very high level of clarity they provided to me around my personal shareholding.  I'm calling it, reported profit for 2025, (not their B.S. normalized number), will be an absolute shocker.   

Moving on to more positive things and awards, the inaugural 2024 Beagle dog Golden Bone award goes to Hollenstein Glasson.  Record profit in the worst recession in 33 years, and sales for the year to date up more than 10%.  Imagine what a golden performance is coming when the economy starts improving !

Finally, the most coveted inaugural Beagle dog platinum award for the hardest work and most dogged performance so far this decade goes to Turners.  Who would have thought a company like them could post one record profit after another every year so far this decade through the Covid years and then the deepest recession in decades.  Those guys are as tough as diamonds and worthy winners.  Expecting a platinum performance from them for the rest of this decade with ongoing record profits year after year going forward. Well done to Todd, Aaron, Tina and team for a truly "dogged" performance. 

Outstanding

[Shareguy]

I have adjudicated on this briefly and it was a very easy decision. The inaugural 2024 Beagle dog "YEAH RIGHT TUI" wooden spoon award for quote of the year for utter corporate B.S. from management and boards this year both go to Heartland.

Firstly, the board award to Greg Tomlinson for his "more slippery than an Eel" statement under intense questioning from this dog during the annual meeting to effectively evade all further questions, "I am very mindful of time constraints"  Secondly to Leanne Lazurus for her comment to me after the meeting, "I can assure you we haven't created a good bank - bad bank situation here" I am most grateful to both recipients for the very high level of clarity they provided to me around my personal shareholding.  I'm calling it, reported profit for 2025, (not their B.S. normalized number), will be an absolute shocker.   

Moving on to more positive things and awards, the inaugural 2024 Beagle dog Golden Bone award goes to Hallenstein Glasson.  Record profit in the worst recession in 33 years, and sales for the year to date up more than 10%.  Imagine what a golden performance is coming when the economy starts improving !

Finally, the most coveted inaugural Beagle dog platinum award for the hardest work and most dogged performance so far this decade goes to Turners.  Who would have thought a company like them could post one record profit after another every year so far this decade through the Covid years and then the deepest recession in decades.  Those guys are as tough as diamonds and worthy winners.  Expecting a platinum performance from them for the rest of this decade with ongoing record profits year after year going forward. Well done to Todd, Aaron, Tina and team for a truly "dogged" performance. 

Very good Basil.  I hope you're wrong with HGH. The chair is on record saying that nsa were valued by third parties and there is not going to be a fire sale. If we find out that there has, then his credibility will be shot. 4 percent NIM for FY25 is above Craig's forecast.

Feb we will all find out.

[SCOTTY]

Shareguy - nsa? Do you mean nta (net tangible assets)?

[Shareguy]

Shareguy - nsa? Do you mean nta (net tangible assets)?

Non strategic assets

[SCOTTY]

Thanks Shareguy 👍

[Shareguy]

As we close on 2024 HGH is hanging around a near decade low and I'm thinking is the current share price justified.

I have been through this thread and can see that a number of people have valid concerns. Have listened to the agm again and have gone through the anouncements and make the following points.

Out of the $218m of nsa. ( non strategic assets) $186m (86 %) are receivables, the balance is equity investments (Harmony) and property.

At the agm Basil's great questions provided some good information on these $186m of receivables. The chair and or the NZ ceo stated that these assets are a pool of business  and rural leaning that includes lending that is still performing but HGH would no longer accept due to strategy changes. The loans that are not performing have already been provisioned. The chair stated that assets have been independently valued. The question is have they been provisioned enough and how much of the $186m is large performing loans. I'm no accountant but don't understand why they have not separated this out for everyone to see. It makes a difference. I intend to ask HGH for this information and will advise if I get a reply. Suspect that as the chair stated there will be no "fire sale"and will be realised over time.

The latest update had HGH reporting a softer-than-expected four-month trading update, as the challenging conditions at the end of FY24 have spilled into FY25. In particular, receivables growth has been lower than expected. Through the first quarter of FY25, Heartland Bank NZ saw non-performing loans increase ~+14 bps, and took an additional NZ$6.6m of provisioning (~13 bps of NZ receivables says FB.

Have looked at the reserve bank dashboard for HB NZ results to 30 Sep 2024 and they are as expected I thought given the state of the economy. A few stood out.

Return on assets

1.1 percent quarter ending 31 March 2024
0.9 percent quarter ending 30 June 2024
0.6 percent quarter ending 30 Sep 2024

Non performing loans ratio

3.8 percent quarter ending 31 March 2024
3.6 percent quarter ending 30 June 2024
3.8 percent quarter ending 30 Sep 2024

Another concern I have is that Heartland Bank (NZ subsid.) has 4.5 years to reach the new capital adequacy rules. Total capital has to go from 14.07% to 16% by 1 July 2028, and core capital to 11.5%. The brokers all seem to forecast this will be met in the normal course of business BUT will it. Sure realising these nsa,s will help but we certainly don't want another CR.

On the plus side we have the Australian bank at a 2 percent saving with retail deposits. That's big money. Craig's thought $30m when at 100 percent retail deposit's. Reverse mortgages going gangbusters and Stockco showing some improvement with large provisioned loan paying up.

In conclusion with the share price so low I'm picking most of this is already baked into the share price. I do agree that Basils concerns and others are justified. So yes there is risk. Will continue to hold at this stage BUT if I see something more compelling then will bail.

Sorry for the long post. Merry Xmas all

[Buzz]

This sort of shite by a former 'accountant' at Heartland really undermines investor confidence. I'm surprised Heartland hasn't acknowledged it to the market, or how they're ensuring it will never happen again!

https://www.fma.govt.nz/news/all-releases/media-releases/individual-pleads-guilty-to-insider-trading-charges/