Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Heartland NZ lifts 1H profit by 9.2% on improved margins

Heartland NZ lifts 1H profit by 9.2% on improved retail, business and rural earnings

Feb. 25 (BusinessDesk) – Heartland New Zealand, which gained bank registration in December, posted a 9.2 percent gain in first-half profit on increased earnings from retail, business and rural lending and a reduction in costs.

Profit rose to $10.7 million in the six months ended Dec. 31, from $9.8 million a year earlier, the Christchurch-based company said in a statement. Net operating income rose 15 percent to $51.8 million, while operating expenses fell 10 percent to $31.9 million.

Growth in the net operating income mainly reflected the acquisition of PGG Wrightson Finance in August 2011 and lower cost of funds, the company said.

That more than offset a wider $5.28 million loss from the non-core property businesses acquired from Marac as part of the merger that created the company. The year-earlier loss was $1.2 million. Heartland took a $4 million impairment expense against the property book, up from impairments of $1.6 million a year earlier.

Heartland shares rose 2.7 percent to 75 cents after the results, which beat brokerage First NZ Capital’s forecast of $11.1 million profit. It will pay a first-half dividend of 2 cents a share on April 5 to shareholders on the register as at March 20.

Net impaired, restructured and past due loans over 90 days were $80.2 million as at Dec. 31, down from $90.5 million a year earlier and mainly reflecting the non-core property book, which consists of $87.9 million of receivables and $55.3 million of investment properties.

The company has embarked on a review of its plan for a managed exit from non-core property over five years.

The receivables book for retail and consumer, the biggest unit of the company’s core business, fell by $9 million to $945.8 million, while net operating income rose 2.3 percent to $24.1 million. Heartland said strong motor vehicle receivables growth was offset by a shrinking residential mortgage book in the face of a competitive market. Profit rose to $17 million from $14.9 million.

Business receivables shrank by 9.7 million to $530.5 million, which it said reflected higher levels of repayments “in a low credit growth market.” Business profit rose to $8.9 million from $5.5 million a year earlier.

The rural receivables book grew to $480.6 million from $478.6 million, which it said reflected low seasonal demand in livestock trading and a low credit growth environment. It expects a pickup in the second half. Rural earnings rose to $8.7 million from $5.1 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news