Foundation set for future growth
Heartland Group announced a net profit after tax (NPAT) of $74.5 million for FY2024, with an underlying NPAT of $102.7m.
Despite a challenging economic environment, the company achieved solid growth in gross finance receivables, up 6.4% from FY2023.
“Heartland’s FY2024 result was impacted by the rapidly deteriorating economic conditions in May and June,” the company said.
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Receivables growth and strategic milestones
Heartland’s receivables increased by 6.4%, reaching $7.2 billion in FY2024.
Key areas of growth included reverse mortgages, which rose 20.2% in New Zealand and 19.7% in Australia, and Asset Finance, which was up 8%.
“Significant strategic milestones set the foundation to achieve FY2028 growth ambitions,” Heartland said.
Strategic acquisitions and digital advancements
Heartland, which just last week, launched the Geoff Ricketts Heartland Bank Scholarship in collaboration with the University of Auckland, completed the acquisition of Challenger Bank, rebranding it as Heartland Bank Australia.
The acquisition was supported by a successful $210m equity raise.
Additionally, Heartland Bank’s core banking system was upgraded, enabling increased digitalisation and automation.
Heartland Bank’s positive outlook despite shortfall
While Heartland experienced a 4.9% shortfall to guidance due to late provisions in its asset finance, motor finance, and rural portfolios, the longer-term outlook remains positive.
“Further growth is anticipated in FY2025 as Heartland continues towards its ambitions for FY2028,” the bank said, signaling confidence in its future trajectory.
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