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

 


Heartland meets guidance with rebound in FY profit

Heartland meets guidance with rebound in FY profit, sees lift in 2015

By Jonathan Underhill

Aug. 25 (BusinessDesk) - Heartland New Zealand, the bank formed from the merger of Canterbury and Southern Cross building societies and Marac Finance, posted a rebound in profit that met its guidance this month and reiterated its projection for earnings growth in 2015.

Profit was $36 million in the 12 months ended June 30, from $6.9 million a year earlier, when the company took a charge to take control of distressed assets previously managed by Pyne Gould Corp. Sales rose 14 percent to $122.6 million.

Heartland has been chasing acquisitions to help grow earnings, buying a reverse mortgage business from Seniors Money International for $87 million and being turned down in its approach to Motor Trade Finances last month, which would have added a loan book of some $438 million.

The lender lifted the top-end of its forecast range for 2015 profit and now expects earnings of between $42 million to $45 million, up from a previous range of $42 million to $44 million.

"For the next financial year, Heartland is focused on continuing the earnings momentum achieved in 2014, with a specific focus on improving ROE (return on equity)," the company said.

The company will pay a final dividend of 3.5 cents a share, making 6 cents for the year, full-imputed.

The company paid $86.1 million for the Seniors home equity release business, gaining assets acquired and liabilities assumed of about $721.4 million and NZ$652.8 million respectively, and net tangible assets of $68.6 million. Heartland said it made a fair value adjustment of $7.5 million on the portfolio, giving the acquired business an NTA of about $61.2 million.

Net operating income from the company's household division rose 32 percent to $15.8 million, while income from its rural business was unchanged at $22.9 million. Its business lending division lifted income by 15 percent to $3.8 million.

The shares were unchanged at 95 cents and have gained 12 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news