Heartland affirms annual guidance, eyes acquisitions in consumer finance
By Paul McBeth
Dec. 11 (BusinessDesk) - Heartland New Zealand, the locally listed bank, affirmed annual earnings guidance, and said
it's keen on buying rivals to grow its business, especially in consumer finance.
Managing director Jeff Greenslade told shareholders at today's annual meeting in Auckland that net profit is still on
track to be between $51 million and $55 million in the 12 months ending June 30, 2016, without allowing for any impact
from the lender's planned capital return. Greenslade said the bank is still keen on making acquisitions to expand its
business, but wasn't able to provide an update on its efforts to buy auto-lender Motor Trade Finances.
"We are particularly interested in the consumer market, especially anything that offers compelling distribution
capability or innovative technology," Greenslade said in speech notes published on the NZX ahead of the meeting. "But
all acquisitions must meet our financial criteria of being value accretive."
Heartland's shareholders will today vote on whether to approve plans to simplify its structure by amalgamating its
businesses into one unit, issue up to $75 million through a tier 2 capital instrument to bring its structure into line
with other lenders, and allow a capital return of as much as $100 million.
The capital return, if approved, is expected to take place in April, though chairman Geoff Ricketts said the payment to
shareholders would depend on the uptake of the tier 2 capital issue, of if a new acquisition opportunity cropped up.
"I can confirm that the board has no reason to believe that such an opportunity will arise," Ricketts said.
Heartland shares rose 0.8 percent to $1.34, and have advanced 18 percent this year.
(BusinessDesk)