About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, January 17th, 6:05PM
Latest Headlines

Hanover's rating reconfirmed

Fitch has confirmed its rating on Hanover at BB+, one step below investment grade. It has also assigned a "stable" tag to the rating indicating that it doesn't expect to raise or lower it in the near future.

Monday, April 21st 2008, 11:30AM
Fitch says Hanover Finance accounts for around 70% of the parent company's assets and 65% of its revenues. It says Hanover Finance has a "solid position in New Zealand's non-bank financial institutions sector," and acknowledges its "relatively small size and exposure to higher-risk property development and investment finance".

"Although Hanover Finance has a healthy appetite for risk, it has incurred only minimal credit losses over an extended period. This can be attributed to good risk controls and a relatively benign credit environment," Fitch says.

The rating agency says Hanover has strong profitability ratios – return on equity (ROE) is in excess of 30% and net interest margins above 5% – which somewhat compensates for the risk associated with property development lending.

Australia is a growing part of its business and now accounts for around 20% of revenue.

Hanover Group chief executive Bruce Gordon welcomed the rating review and said the company's priorities over the past year included "maintenance of a conservative cash position, selected lending on quality assets, and rigorous debt collection and provisioning."

"We remain vigilant in ensuring borrowers meet their loan obligations and outstanding monies are recovered, a point noted by Fitch Ratings in commenting that Hanover Finance demonstrates a level of expertise in minimising losses in this area," Gordon says.

« Cynotech buys up finance company loan booksReceivership better ending for Kiwi Finance: Trustee »

Special Offers

Commenting is closed



Printable version  


Email to a friend
Today's Best Bank Rates
Rabobank 1.75  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Partners Life criticises Vitality
    “bay broker good points but I get the point about premiums increasing when sick. I have Vitality personally and I have qualified...”
    17 hours ago by taka dan
  • Don't hold your breath for life insurance reform
    “That's a good observation from @JPHale there. "2% of sales" has even less meaning when you don't know if it's 2% of premiums...”
    18 hours ago by Denis
  • Partners Life criticises Vitality
    “I've added Vitaltiy to a number of clients' new covers. I have also sold AIA cover without it. As with all advice it is...”
    22 hours ago by BayBroker
  • Don't hold your breath for life insurance reform
    “Having read both the article and the comments I can only agree with what has been said in the comments. Further, I am...”
    22 hours ago by BayBroker
  • David Whyte's 5 predictions for 2020
    “@ number 2: LOL - don't hold your breath. And besides, even if they did do it, if someone needs it they should probably already...”
    2 days ago by All hat no cattle
Subscribe Now

Deposit Rates newsletter

Previous News


Most Commented On
News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%


About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com