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

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news