HGH - Heartland Group Holdings

[Basil]

As a term deposit holder with HGH I have to say there service is dreadful. Been trying for a month now to call them and have left several call back requests which have not been returned.

That's simply not good enough.  I will not accept that everything including communications must be digital.
You should be able to call your bank during business hours.  If you can't then they are not a business that I want to do business with in the future. Appreciate your feedback about it Snapper.   Keep us in the loop with how you get on.

[Perky]

I've been using heartland for term deposits for quite a few years now.
The few times I've needed to contact them by phone it's been relatively quick and easy.

I'm not a shareholder but if I was I would want to know why every time my interest is compounding or a term deposit is expiring they always send a letter by post. With the cost of post going thru the roof I'm not sure why the digital  bank doesn't just email this information?

Would be helping save the planet and keeping more $ for the shareholders

Is there some legal requirement for the use of post? Anyone know?

[snapiti]

That's simply not good enough.  I will not accept that everything including communications must be digital.
You should be able to call your bank during business hours.  If you can't then they are not a business that I want to do business with in the future. Appreciate your feedback about it Snapper.   Keep us in the loop with how you get on.

I can tell you I have sat on the phone for hours in the last month waiting on hold.
I can also say I have left 4 phone request in the last month for a call back and had none.
Today @ 10 am I left a query on Heartlands digital login message system to call me.....I shall post when I get a reply.....none as yet.

[winner (n)]

Maybe they doing the Te Whata Ora thing and ethnicity matters when you get a call back

[Basil]

https://www.stuff.co.nz/business/132425865/rising-threat-of-bad-loans-pushes-bank-profits-down-for-first-time-in-almost-two-years
Bank profits coming off the boil, combined profit down 13% last quarter with bad debt loan provisioning increasing.  Just as well banks can mitigate the effects of thsi with increased net interest margins, but there were two banks that didn't and HGH was one of them.  Hmmm...could be some interesting implications for FY24 profitability...

Surely you have a reply by now Snapper ?

[snapiti]

as a test I logged into my heartland account then sent a secure message via there link to inquire about opening a PIE term investment, I also left a phone call back message, it took 3 days to get am email reply and still have not received a call back....just not good enough

[lorraina]

Great seeing HGH moving back up.Currently their share price has gone through both the 90 day and 180 day moving averages.RSI is also strong.
Their result is due on 24th August.
Wonder if they will pay a 5.5 cps or a 6 cents fully imputed divie.?

[winner (n)]

Adjusted NPAT within guidance as expected and F24 guidance is for a little more

Seems Jeff is trying to bamboozle us with accounting jiggery pokery

The footnotes are about as long as the body of the report

Whatever we have to keep trusting Jeff eh

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/417247/401666.pdf

[Basil]

Market seems pleased with the outlook considering how weak the economy is.
FY24 say 120m = 16.9 cps, (which is right in line with average forward estimates here) https://www.marketscreener.com/quote/stock/HEARTLAND-GROUP-HOLDINGS--47041144/finances/
Forward PE 10.3 at $1.74.  If they can pay 12 cps fully imputed the gross yield is 9.6%.
No way that Jeff fiddles with the provisions and what charges are taken above and below the line to get the results he wants is there Winner 
Those forward metrics look okay to me but I find it really difficult to get excited about increasing my exposure to the dreadfully weak N.Z. economy at present.

[winner (n)]

Hey Basil ....you called it a year ago ...you said EPS would decline in F23

And that's happened .....even the Underlying EPS is down on last year

[Basil]

Think you meant FY23 Winner, thanks.  Your observations about if the economy and for example if Dairy is weak it's not good for HGH are also to the fore here.  The tide still feels like its going out for the N.Z. economy eh.  That said I suppose I need to have a look at how HGH's forward metrics compares to the Aussie banks I follow and go through the motions so here we go.
FY24 forward PE based on average analyst view off market screener
HGH 10.3
NAB 12.5
WBC 11.0
ANZ 11.0
BEN 11.1
BOQ 10.9

HGH a bit cheaper than the others which probably is about right as it reflects the extremely weak N.Z. economy.

[winner (n)]

Think you meant FY23 Winner, thanks.  Your observations about if the economy and for example if Dairy is weak it's not good for HGH are also to the fore here.  The tide still feels like its going out for the N.Z. economy eh.  That said I suppose I need to have a look at how HGH's forward metrics compares to the Aussie banks I follow and go through the motions so here we go.
FY24 forward PE based on average analyst view off market screener
HGH 10.3
NAB 12.5
WBC 11.0
ANZ 11.0
BEN 11.1
BOQ 10.9

HGH a bit cheaper than the others which probably is about right as it reflects the extremely weak N.Z. economy.

And the 'discount' for being on NZX

[winner (n)]

 ;underlying profit up 14m

Stock Co up 22m before tax ...say 15m after tax

Jeez, just as well we had Stock Co .....rest of business didn't grow

Well done Stock Co

[Basil]

Got to hand it to Jeff that he doesn't lack ambition.
Ambitious enough to state he wants to double profit within 5 years.
Slow start with eps growth forecast in FY24 to only grow ~ 6% so he's talking about a CAGR of a fraction over 17% for the following 4 years.  Gosh, talk about setting yourself a big task!

[Shareguy]

Final DPS of 6.0c. Happy with that.  No update yet on the potential acquisition of Challenger Bank. Guidance for FY24 is Underlying NPAT of $116-122m, which if it can be achieved, would appear to be a good result in a challenging environment. Great result from Stock co.

I agree there is further risk to the downside given the negative sentiment in NZ and in particular the pressures our farmers are facing.