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


Heartland announces half-year results and growth direction


19 February 2019

Heartland announces half-year results and strategic growth direction

Heartland Group Holdings (Heartland) has reported a half year result, with continued focus on growth opportunities in the Australian Reverse Mortgage market, and small business lending via its Open for Business (O4B) platform. This was achieved during a period of restructure which has positioned Heartland to grow and more efficiently access funding and capital.

• Heartland achieved a net profit after tax of $33.1 million for the six months ending 31 December 2018. This is an increase of 6.5 percent from the previous corresponding reporting period.

• Gross finance receivables grew $240.7 million in the six months to 31 December 2018, an annualised growth rate of 11.9 percent, excluding the impact of changes in foreign currency exchange rates.

• The key drivers of this growth were our Australian Reverse Mortgages, O4B, Business Intermediated, Harmoney and Motor divisions.

• Growth in profitability was achieved notwithstanding one-off corporate restructure and ASX listing costs ($0.9 million) and one-off foreign currency costs of $1.2 million incurred in relation to the corporate restructure.

• Impaired asset expense increased $2.9 million (27.6 percent) to $13.3 million for the six months ended 31 December 2018, but $2.2 million of that increase is a result of the new IFRS9 methodology.

• In October 2018, Heartland completed its corporate restructure and became listed on the ASX under a Foreign Exempt Listing.

• Heartland Bank is now a wholly-owned subsidiary of Heartland Group.

• Following the corporate restructure, Heartland Group’s activity comprises three areas of strategic focus: Australia Reverse Mortgages, Digital Platform Services (including O4B, the mobile app and new markets) and New Zealand Banking (including the five core lending areas: New Zealand Reverse Mortgages, Motor, SME, Livestock and Harmoney).

• The corporate restructure provides Heartland greater flexibility to explore and take advantage of future growth opportunities and funding options in New Zealand and Australia outside of the banking group.

• As part of the restructure, Chris Flood (previously Deputy CEO) has been appointed as dedicated CEO for Heartland Bank Limited, subject to Reserve Bank of New Zealand non-objection. Jeff Greenslade will remain CEO for Heartland Group Holdings, providing oversight of all Heartland Group activities, including banking, and will take direct responsibility for Australia and Digital as well as managing the Group’s strategy, capital and corporate finance.

• New Zealand Banking is expected to continue to grow. Alongside this, there are two areas with potential high growth opportunities - Australia Reverse Mortgages and O4B.

• More resources will be dedicated to these areas to unlock these opportunities while maintaining a strong bank which continues to grow and deliver valued customer services. Across the Group, the common theme is to deliver simple, frictionless on-boarding and processing solutions for the customer. Heartland also aims to grow while utilising the flexibility of the new corporate structure to access broader funding and capital sources.

For more detail about Heartland’s half year results, including financials, go to


© Scoop Media

Business Headlines | Sci-Tech Headlines


Workers “Blind-Sided”: Sanford Processing Restructure Plan

Up to 30 jobs – almost half Sanford’s Bluff workforce - could be lost if the proposal to move white-fish processing to Timaru goes ahead. More>>

up arrow"Steady": GDP Up 0.6 Percent In March Quarter

“Construction was the main contributor to GDP growth this quarter, rising 3.7 percent, on top of a 2.2 percent increase in the previous quarter,” national accounts senior manager Gary Dunnet said. More>>


Gordon Campbell: On Our Wild West Banking Culture

David Hisco’s nine year stint as CEO of the ANZ bank (while his expense claim eccentricities went by unbothered by board oversight) has been a weird echo of the nine years of social neglect by the previous National government... More>>


Privacy & Regulation Issues: Hopes Facebook Currency Will Speed Pacific Transfers

A Tongan community leader is hopeful Facebook's planned digital currency will help end long wait times for money being transferred between New Zealand and the Pacific Islands. More>>

Oil Exploration: Chevron, Equinor Depart NZ

Chevron and Norwegian oil giant Equinor have opted to abandon their joint exploration efforts off the east coast of the North Island... Chevron said the decision not to proceed with the next five-year stage of their work programmes was based on the firms’ broader portfolio considerations and not “policy or regulatory concerns.” More>>