INDEPENDENT NEWS

Heartland announces half-year results and growth direction

Published: Tue 19 Feb 2019 09:10 AM
MEDIA RELEASE
19 February 2019
Heartland announces half-year results and strategic growth direction
Heartland Group Holdings (Heartland) has reported a half year result, with continued focus on growth opportunities in the Australian Reverse Mortgage market, and small business lending via its Open for Business (O4B) platform. This was achieved during a period of restructure which has positioned Heartland to grow and more efficiently access funding and capital.
• Heartland achieved a net profit after tax of $33.1 million for the six months ending 31 December 2018. This is an increase of 6.5 percent from the previous corresponding reporting period.
• Gross finance receivables grew $240.7 million in the six months to 31 December 2018, an annualised growth rate of 11.9 percent, excluding the impact of changes in foreign currency exchange rates.
• The key drivers of this growth were our Australian Reverse Mortgages, O4B, Business Intermediated, Harmoney and Motor divisions.
• Growth in profitability was achieved notwithstanding one-off corporate restructure and ASX listing costs ($0.9 million) and one-off foreign currency costs of $1.2 million incurred in relation to the corporate restructure.
• Impaired asset expense increased $2.9 million (27.6 percent) to $13.3 million for the six months ended 31 December 2018, but $2.2 million of that increase is a result of the new IFRS9 methodology.
• In October 2018, Heartland completed its corporate restructure and became listed on the ASX under a Foreign Exempt Listing.
• Heartland Bank is now a wholly-owned subsidiary of Heartland Group.
• Following the corporate restructure, Heartland Group’s activity comprises three areas of strategic focus: Australia Reverse Mortgages, Digital Platform Services (including O4B, the mobile app and new markets) and New Zealand Banking (including the five core lending areas: New Zealand Reverse Mortgages, Motor, SME, Livestock and Harmoney).
• The corporate restructure provides Heartland greater flexibility to explore and take advantage of future growth opportunities and funding options in New Zealand and Australia outside of the banking group.
• As part of the restructure, Chris Flood (previously Deputy CEO) has been appointed as dedicated CEO for Heartland Bank Limited, subject to Reserve Bank of New Zealand non-objection. Jeff Greenslade will remain CEO for Heartland Group Holdings, providing oversight of all Heartland Group activities, including banking, and will take direct responsibility for Australia and Digital as well as managing the Group’s strategy, capital and corporate finance.
• New Zealand Banking is expected to continue to grow. Alongside this, there are two areas with potential high growth opportunities - Australia Reverse Mortgages and O4B.
• More resources will be dedicated to these areas to unlock these opportunities while maintaining a strong bank which continues to grow and deliver valued customer services. Across the Group, the common theme is to deliver simple, frictionless on-boarding and processing solutions for the customer. Heartland also aims to grow while utilising the flexibility of the new corporate structure to access broader funding and capital sources.
For more detail about Heartland’s half year results, including financials, go to www.nzx.com/companies/HGH/announcements.
ENDS

Next in Business, Science, and Tech

Government accounts show strong economy
By: New Zealand Government
OceanaGold cleared to buy land for Waihi tailings expansion
By: BusinessDesk
Fletcher sued for $7.5m over Christchurch justice precinct
By: BusinessDesk
PHARMAC signs bundle deal for more cancer medicines
By: PHARMAC
Government levels electricity playing field for consumers
By: New Zealand Government
NZ dollar rises on better-than-expected govt surplus
By: BusinessDesk
Rail revaluation bolsters Crown 2019 accounts
By: BusinessDesk
Shane Jones' PGF quietly made tax-exempt
By: BusinessDesk
Robertson’s pockets bulge as everyday Kiwis struggle
By: New Zealand National Party
DHB deficits out of control, health services at risk
By: New Zealand National Party
Green Party responds to Government surplus announcement
By: Green Party
Nearly $2 of every $5 swallowed by the Government
By: ACT New Zealand
NZEI Te Riu Roa welcomes Government's education spending sig
By: NZEI
Give the money back, Grant
By: New Zealand Taxpayers' Union
Surplus should be spent on housing, health and services
By: Public Service Association
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media