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Jenny Ruth
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Heartland profit forecast downgraded, but future positive

Thursday 20th of September 2012

The value of Heartland New Zealand's non-core property portfolio is likely to decline further, despite the $30 million in losses already chalked up,says Forsyth Barr analyst Chris Cairns.

The portfolio was valued at $94 million at June 30 this year and Heartland said when it announced its results last month it had fully utilised the $30 million buffer provided by its arrangement with Pyne Gould and would have to take any further losses itself.

Cairns says he was surprised at the degree of impairment shown in the six months ended June. "I may well be being too conservative but they would be the first to admit the realisation of that non-core portfolio has been slower than they would have wanted."

Cairns notes that when Pyne Gould entered into its underwriting agreement, it had expected to profit from it which clearly hasn't happened.

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Latest Comments
FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
1 hour ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
3 hours ago Backstage
FMA outlines its latest expectations for advisers
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2 days ago Jon-Paul Hale
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2 days ago Jon-Paul Hale
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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