Heartland Group reports $3.6m half-year profit

Heartland Group Holdings has reported a net profit after tax (NPAT) of $3.6 million for the first half of the 2025 financial year.

On an underlying basis, the company's NPAT for the period was $10.7m.

The decrease in NPAT was attributed to a higher impairment expense and increased operating expenses.

Heartland said the higher impairment expense was due to the active derisking and repositioning of non-performing loans in its New Zealand bank, Heartland Bank.

The increase in operating expenses was partly related to the regulatory and operational requirements of Heartland Bank Australia's transition to an authorised deposit-taking institution (ADI).

However, the company said it had strong growth in reverse mortgages in New Zealand and Australia, with receivables up 15.3% and 15% respectively.

Heartland Group remains well capitalised with strong liquidity and no changes to its credit ratings.

An interim dividend of 2 cents per share was declared.