Heartland’s FY2023 result demonstrates resilience

NZX/ASX release
29 August 2023

Heartland’s FY2023 result demonstrates resilience

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce a net profit after tax (NPAT) of $95.9 million for the financial year ended 30 June 2023 (FY2023). On an underlying basis, FY2023 NPAT was $110.2 million. NPAT increased $0.7 million (0.8%), and on an underlying basis, $14.1 million (14.6%), compared with the financial year ended 30 June 2022 (FY2022).

Highlights for FY2023

Financial highlights
‒ NPAT of $95.9 million, up 0.8% ($0.7 million) on FY2022 NPAT. Underlying NPAT of $110.2 million, up 14.6% ($14.1 million) on FY2022 underlying NPAT.
‒ One-off or non-cash technical items had a $14.3 million net impact on NPAT.
‒ Gross finance receivables (Receivables) of $6.8 billion, up 10.1% ($625.5 million).
‒ Underlying return on equity (ROE) of 11.9%, down 68 basis points (bps).
‒ Net interest margin (NIM) of 3.97%, down 8 bps. Underlying NIM of 4.00%, down 16 bps.
‒ Net interest income (NII) of $282.0 million, up 12.7%. Underlying NII of $283.9 million, up 14.3%.
‒ Underlying cost to income (CTI) ratio of 42.0%, down 53 bps on FY2022.
‒ Underlying impairment expense ratio of 0.36%, up 7 bps.
‒ FY2023 final dividend of 6.0 cents per share (cps), resulting in a FY2023 total dividend of 11.5 cps, up 0.5 cps on the FY2022 total dividend.
‒ Earnings per share (EPS) of 14.0 cps, down 2.1 cps. Underlying EPS of 16.0 cps, down 0.3 cps.

Strategic highlights
‒ $199 million raised through 2022 equity raise to fund growth ambitions for existing businesses and repay acquisition-related bridge debt of $174 million (A$158 million).
‒ Completed the integration of StockCo Australia into Heartland.
‒ Signed a conditional share purchase agreement for the purchase of Challenger Bank Limited (Challenger Bank) on 20 October 2022, subject to obtaining the requisite regulatory approvals.
‒ Australian Reverse Mortgages business increased market share to 38.4%.
‒ Heartland Bank Limited (Heartland Bank) awarded Canstar New Zealand’s Bank of the Year – Savings award for the sixth consecutive year.
‒ Nearing completion of the upgrade of Heartland Bank’s core banking system.

For the full announcement, see the attachments to this release:
- Heartland FY23 Results Announcement
- Investor Presentation
- Heartland NZX Results Announcement Template
- Heartland Distribution Notice
- ASX Listing Rules 1.15.3 Statement
- Heartland Group Holdings Financial Statements
- Heartland Bank Disclosure Statement
- LTI Buyback Disclosure Document


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The person(s) who authorised this announcement:

Jeff Greenslade, Chief Executive Officer

Andrew Dixson, Chief Financial Officer

For further information and media enquiries, please contact:
Nicola Foley, Group Head of Communications
+64 27 345 6809
[email protected]
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

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Announcement PDF