A large reduction in cash put aside for impaired assets
allowed Heartland New Zealand to report a substantially
improved profit for the year ended June.
But even the top-line profit of $57.4 million in the period
was well ahead of the $36.5 million reported in the previous
The bank allowed just $5.9 million for impaired assets in the
period under review compared with $22.5 million in the
The operating profit soared to $50.3 million compared with
$8.9 million in 2013.
The reported profit for the period was $36 million, up from
$6.9 million. The company declared a dividend of 6c per
Net operating income rose to $122.2 million from $106.9
Heartland has indicated it wants to buy Dunedin-based Motor
The bank had $3 billion of total assets at balance date,
including $2.6 billion of total liabilities.
Chief executive Jeff Greenslade announced an increase in
reported profit guidance for the 2015 year of $42 million to
''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 average equity].
"We will continue our product-centric strategy, focusing on
higher-yielding products where a market-leading position can
Heartland would continue to investigate potential acquisition
opportunities that were ROE-accretive as well as assessing
possible capital management options.
Heartland's net tangible assets increased from $331.2 million
to $399.9 million, mainly due to the acquisition of the Home
Equity Releases mortgage business.
On a per share basis, NTA was 86c at balance date compared
with 85c in the previous period.