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

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news