Heartland group boosts earnings
Higher reverse mortgages have helped boost profits at Heartland Group Holdings Limited.
Tuesday, August 23rd 2022, 10:44AM
by Eric Frykberg
The banks has today announced a net profit after tax (NPAT) in cash terms of $95.1 million for the year to June.
This was an increase of $8.1 million, or 9.3% over the same period last year.
Heartland management said the number was a record and they also announced a new equity issue to pay down debt.
The figures cover both branches of the company, in New Zealand and Australia. A breakdown between the two sections is expected later today.
On an underlying basis, the Heartland story is similar to the cash figures. On an underlying basis, NPAT was $96.1 million, an increase of $8.2 million, or 9.3%.
The equity raising is planned to bring in $200 million, and will be used to repay A$158 which was used to buy the Australian agricultural finance company StockCo.
In a statement to the NZX, Heartland said its cash return on equity (ROE) was 12.1%, up 21 basis points, while its underlying ROE was 12.6%, up 59 bps. Impairment costs fell slightly.
There is a final dividend of 5.5 cents per share, taking full year dividends to 11.0 cents, which matches average levels for three years.
The company also gave details of its signature policy, Reverse Mortgages.
Its portfolio rose 20% to 721 million dollars and its net earnings rose 33% to $32,5 million.
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