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

 


Heartland says FY profit soars as 2013 charges wash through

Heartland says full-year profit soars after one-off charges wash through

By Suze Metherell

Aug. 7 (BusinessDesk) - Heartland New Zealand, the bank formed from the merger of Canterbury and Southern Cross building societies and Marac Finance, said annual earnings soared 421 percent after one-off charges in the prior year washed through and as it improved profitability.

Profit rose to $36 million in the year ended June 30, 2014, from $6.9 million and near the higher end of its forecast $34 million to $37 million range, the Christchurch-based lender said in a statement. Heartland's 2013 earnings were weighed down by charges to take control of distressed assets previously managed by Pyne Gould Corp, and it said increased operating income, and continued management of expenses and impairments helped lift the 2014 profit.

The earnings represent a return on average equity (ROE) of about 9 percent, compared to a previous ROE of 2 percent, and an adjusted ROE of 6.5 percent, Heartland said in a statement.

"Heartland will continue to investigate potential acquisition opportunities that are ROE accretive as well as assessing possible capital management options to improve ROE," the company said. "We will continue our product centric strategy focusing on higher yielding products where a leading market position can be achieved."

Earlier this year, Heartland bought a reverse mortgage business from Seniors Money International for $87 million, and at its February first-half report said it was looking for new acquisitions to accelerate growth. Last month it emerged that Motor Trade Finances, which has a loan book of some $438 million, had rejected a takeover bid from the bank.

The Seniors Money acquisition contributed about $1 million to net profit, it said.

In May Standard & Poor's raised the Christchurch-based lender's long-term issuer credit rating to BBB from BBB-, while retaining a negative outlook based on New Zealand's exposure to economic imbalances, it said in the upgrade.

Shares of Heartland were unchanged at 94 cents. The company will announce its annual results on Aug. 25.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news