Announcement
HALFYR: HGH: Heartland announces half year profit of $39.9 million
09:36am
HGH
18/02/2020 09:36
HALFYR
PRICE SENSITIVE
REL: 0936 HRS Heartland Group Holdings Limited
HALFYR: HGH: Heartland announces half year profit of $39.9 million
NZX/ASX Release
Heartland announces half year profit of $39.9 million
18 February 2020
Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) achieved a net
profit after tax (NPAT) of $39.9 million for the six months to 31 December
2019 (1H2020), an increase of 20.4% from the six months to 31 December 2018
(1H2019).
Highlights for 1H2020
o NPAT of $39.9 million, up 20.4% ($6.7 million).
o Gross finance receivables (Receivables) of $4.6 billion, up $177 million
(8% annualised growth) since June 2019.
o Return on equity (ROE) of 11.7%, up 165 basis points (bps).
o Net interest margin (NIM) of 4.72%, flat on the six months to 30 June 2019
(2H2019) and 5 bps down compared to 1H2019.
o Cost to income ratio (CTI) of 46.0%, up 3.5%. After allowing for changes in
the accounting treatment and one-off impacts, the underlying CTI is 43.3%, up
4.3% as a result of significant investments.
o 32% ($4.3 million) lower impairment expense reflecting significant efforts
to enhance collections processes and discipline.
o 2020 Interim Dividend of 4.5 cents per share (cps), an increase of 1.0 cps
from 1H2019.
o Significant progress made on implementing Heartland's workplan to address
improvements across conduct and culture.
o 47% of employees were aged 35 years and under.
o 35 interns joined Heartland Bank's Manawa Ako internship programme - 10
more interns than last year's intake.
o Heartland Bank awarded Canstar's 2019 Bank of the Year - Savings and
Canstar's 5-Star Rating for Outstanding Value Savings Account for its Direct
Call Account.
o Australian Reverse Mortgages awarded Money Magazine's Best Reverse Mortgage
2019.
Please find the following material attached:
o Heartland Group 2020 Interim Results Announcement
o Heartland Group 2020 interim results announcement (NZX template)
o Heartland Group 2020 Distribution Notice
o Heartland Group 2020 Investor Presentation
o HGH Financial Statements
- Ends -
For further information, please contact:
Jeff Greenslade
Chief Executive Officer
M 021 563 593
Cherise Barrie
Chief Financial Officer
M 027 503 6119
For investor enquiries, please contact:
Andrew Dixson
Head of Corporate Finance
M 021 263 2666
For media enquiries, please contact:
Nicola Foley
Senior Communications Manager
M 027 345 6809
End CA:00348586 For:HGH Type:HALFYR Time:2020-02-18 09:36:48
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