Heartland Bank Ltd increased net profit after tax by 12% to $60.8 million for the year to June. It’s also considering making a notes issue in the next fortnight.
Chief executive Jeff Greenslade said yesterday the increase in profitability was driven primarily by growth in receivables across all divisions – household, business & rural.
- 12% increase in profitability to $60.8 million ($54.2 million in the first half of 2016)
- Net finance receivables up 14% ($447 million) to $3.6 billion
- 6% return on equity (11.1%)
- Launch of multiple digital platforms
- Implementation of new core banking system
- Earnings/share 12c
- Total assets up $501.7 million due to the increase in net finance receivables plus an increase in liquid investments
- Household net receivables increased $227.8 million with reverse mortgages up $126.1 million, motor vehicle loans up $72 million and personal loans (including Harmoney) up $40 million
- Business division net receivables increased $96.2 million and and rural $123 million
- Net tangible assets increased from $433.5 million to $490.5 million, and from 91c to 95c/share.
Mr Greenslade said the company was considering making an offer of 5-year unsecured, unsubordinated, fixed-rate notes to institutional & New Zealand retail investors. If the offer proceeds, the company expected it to open in late August.
Attribution: Company release.