Heartland Bank Ltd increased net profit after tax by 11% to $67.5 million in the year to June. Net operating income rose 15% to $196.8 million.
Chief executive Jeff Greenslade said yesterday the strong growth in profitability was driven by growth in underlying net finance receivables, which were up 12% to $4 billion.
Mr Greenslade said the growth strategy was delivering results in core business – reverse mortgage, motor & small business lending – while the bank’s Australian operations had grown 39%.
Assuming shareholders approve the company’s proposed restructure at the annual meeting on Wednesday 19 September, shares in the new parent company, Heartland Group Holdings Ltd, will begin trading on the NZX & ASX on 1 November.
The bank has entered the new financial year positively, expecting net profit after tax for the June 2019 year to be in the range of $75-77 million – a rise of 11-14%.
Financial highlights for the 2018 year (2017 in brackets):
- Total comprehensive income, up 14.4% to $71.2 million ($62.2 million)
- Net profit after tax, up 11% to $67.5 million ($60.8 million)
- Net operating income, up 15% to $196.8 million ($171.3 million)
- Impaired asset expense, up 47% to $22.1 million ($15 million)
- Impairment ratio59% (0.45%)
- Pretax profit, up 11.5% to $94.3 million ($84.6 million)
- Basic & diluted earnings/share, 13c (12c)
- Net tangible assets/share, up 9.5% to $1.04 (95c)
- Total equity, up 16.6% to $664.2 million ($569.6 million)
- Net finance receivables, up 12.4% to $4.0 billion ($3.6 billion)
- Return on equity1% (11.6%)
- Net interest margin42% (4.46%)
- Cost:income ratio9% (41.9%)
- Final dividend5c/share, full-year dividend 9.0c/share
Link: Heartland Bank
6 August 2018: Heartland aims to add ASX listing in restructure
Attribution: Company release.