Heartland Group Holdings Limited

Overview

Heartland Group Holdings Limited (NZX:HGH) is a financial services group with operations in New Zealand and Australia.

In New Zealand, Heartland Bank Limited (NZX:HBL) is a registered bank that focuses on 'best or only' banking products in three key markets: Household (which includes investment products, consumer lending, reverse mortgages and motor vehicle lending); Business; and Rural. In Australia, Heartland is a specialist provider of reverse mortgage loans and also provides funding to partners in the Small Business and Consumer Lending sectors.

Since first listing on the NZX Main Board in February 2011, Heartland has successfully progressed through several strategic phases, establishing itself as a specialist financial services group that is listed on both the NZX Main Board and ASX under a Foreign Exempt Listing.

A corporate restructure of the Heartland group was implemented in October 2018. For announcements prior to 1 November 2018 relating to Heartland shares, please refer to Heartland Bank Limited's listing (NZX:HBL).

Performance

The following information was extracted from Heartland Bank Limited's full year, released on 20 August 2026:

Heartland announces FY2026 result and outlook for FY2027

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) has announced a net profit after tax (NPAT) for the financial year ended 30 June 2026 (FY2026) of $93.2 million (up from $38.8 million in the financial year ended 30 June 2025 (FY2025)). On an underlying basis, FY2026 NPAT was $90.4 million (up from $46.9 million in FY2025).

Through FY2026, Heartland has established a strong foundation to support its next phase of growth. Heartland met all FY2026 underlying guidance metrics, delivering an improved return on equity (ROE) and turnaround in profitability, driven by margin expansion and strengthened asset quality.

Overview of FY2026 performance:

‒ ROE was 7.3%. Underlying ROE increased 286 basis points (bps) to 7.1%.

‒ Average net interest margin (NIM) was 3.95%. Average underlying NIM expanded 36 bps to 3.98%.

‒ Operating expenses (OPEX) were $196.0 million, and the cost-to-income (CTI) ratio was 54.1%. Despite underlying OPEX increasing $12.2 million (6.7%) to $193.5 million, the underlying CTI ratio improved 155 bps to 54.6%.

‒ The impairment expense ratio decreased 55 bps to 0.45% as Heartland Bank Limited (Heartland Bank) significantly strengthened its asset quality. Heartland Bank cleared all Motor Finance non-performing loans (NPLs) greater than 180 days past due (DPD) and the portfolio’s arrears continue to outperform the industry average.

‒ Reverse Mortgages for both Heartland Bank and Heartland Bank Australia Limited (Heartland Bank Australia) continued to perform well, with gross finance receivables (Receivables) up 16.8% and 19.7% respectively.

‒ Heartland Bank’s Rural portfolio delivered strong Receivables growth of 10.8%.

‒ The non-strategic asset (NSA) realisation programme has successfully concluded, with a 94% recovery rate.

‒ Heartland Bank and Heartland Bank Australia reached key technology transformation programme milestones with the launch of Reverse Mortgages onto the new platforms.

‒ In June 2026, Heartland announced a proposal to acquire from Toi Foundation all TSB Bank Limited (TSB) shares on issue and subsequently merge Heartland Bank and TSB to create a New Zealand challenger bank of scale, with a regional focus. See page 3 for more information.

‒ Final dividend of 3.5 cents per share (cps).