Heartland Bank was fairly priced when adjusted for its lower
return on equity and credit quality than its peers, Craigs
Investment Partners broker Greg Easton said yesterday. Shares
last traded at 87c with a 12-month target price of 85c.
The company's strategy of selling non-core assets was
Around 10% of the portfolio, or $107 million, was sold in the
first two months. Heartland expected to sell more than $40
million in the next 10 months with the support of an
improving property market, reducing the portfolio to about
$60 million, he said.
The products identified for growth were: motor vehicle
finance; livestock finance; invoice finance; working capital
finance; rural seasonal capital; and business call.
Apart from vehicle finance, where Heartland was the third
largest independent player, the other products had no
dominant players and Heartland was coming from a low base.
''Heartland thinks it has the competitive edge,'' Mr Easton