Heartland Group Holdings has provided a performance update for the financial year ending June 2024, based on unaudited results up to 30 November 2023.
The company reported year-to-date receivables growth of 4.7%, with strong growth of 20.4% for Australian reverse mortgages and 17.8% for New Zealand reverse mortgages.
However, Heartland experienced a slower than expected start to the financial year, citing a decrease in the purchase of new cars, adverse Australian climatic conditions affecting livestock purchases, and delayed repayments of lower yielding loans and a tighter deposit market impacting net interest margin recovery.
The company expects a stronger second half of the financial year, particularly as the backlog of stalled car purchases clears and as more favourable climatic conditions in Australia have an impact.
Heartland has revised its net profit after tax guidance for FY2024 due to the operational performance challenges, the proactive response by Heartland Bank to issues affecting legacy lending, and the expected impact of the acquisition of Challenger Bank.
The new guidance range for NPAT is $93 million to $97 million, excluding any impacts of fair value changes and the de-designation of derivatives.
Excluding the post-COVID-19 overlay and Challenger Bank NPAT, the range is $108 million to $112 million.
The previous guidance range was $116 million to $122 million.
See more
