Heartland Group reports $38.8m net profit

Heartland Group has reported a net profit after tax of $38.8 million for the financial year ended June 30, 2025.

On an underlying basis, the company's npat was $46.9m, which met its guidance of at least $45m.

Heartland said it prioritised capital efficiency in FY2025, focusing on restoring a superior margin and derisking its lending portfolios.

The company's net interest margin increased by 17 basis points to 3.56%.

However, operating expenses were up 38.1% to $53.2m, primarily due to non-repeating benefits in the previous financial year and costs related to regulatory requirements.

Impairment expense also increased by 54.3% to $25.2m.

Heartland's existing Australian businesses have been integrated into the acquired authorised deposit-taking institution (ADI), forming a new Australian bank.

The company said its priority for FY2026 is to deliver an underlying return on equity of at least 7% and an improved underlying npat of at least $85m.