Listed finance provider Heartland New Zealand has said it expects to know by November if it has been successful in its application to the Reserve Bank to become a registered bank - its aim for the past 17-months.
Because strict confidentiality surrounds formal applications to the Reserve Bank for the license, the timeframe for the process has been unknown.
However, Heartland put out a market statement yesterday saying that while the timing to the end of the process remained uncertain and outcome remains unknown, it expected a decision would be "available by a date in November".
Heartland noted that if the Reserve Bank declined the application there is no appeal process available, but another application may be considered in the future.
Listed in February 2011, Heartland shares initially traded at 88c. During this year they hit a low of 44c in March before a high of 60c the following month, remaining unchanged at 55c yesterday after the announcement.
Heartland was formed in January last year following the $2.2 billion merger of the Canterbury Building Society, Marac Finance and the Southern Cross Building Society, with the intention of applying for a banking licence this year. Since the merger, Heartland had achieved 11 of 12 points on a to do list, including merging companies and loan books, exiting the Crown guarantee umbrella and gaining an investment rating.
By April this year, Heartland had grown its asset base by a further $18 million to $2.09 billion, through its business loans divisionIn September last year Heartland's acquisition of PGG Wrightson Finance was completed. It paid about $99.5 million for the PWF shares - an amount equal to its adjusted net tangible assets.
PGGW entered into a distribution agreement where Heartland would offer financial products and services to PGGW's agri-clients, and PGGW would make referrals to Heartland from its farmer client base.
Heartland's full-year result to June is due out on August 28.
