Announcement
HALFYR: HGH: Heartland announces half year NPAT of $44.1 million
09:32am
HGH
22/02/2021 09:32
HALFYR
PRICE SENSITIVE
REL: 0932 HRS Heartland Group Holdings Limited
HALFYR: HGH: Heartland announces half year NPAT of $44.1 million
NZX/ASX Release
Heartland announces net profit after tax of $44.1 million for the six months
ended 31 December 2020 (or $43.2 million on an underlying basis after
removing the impacts of one-offs)
22 February 2021
Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) achieved a net
profit after tax (NPAT) of $44.1 million for the six-month period ended 31
December 2020 (1H2021), an increase of $4.2 million (10.6%) compared with the
six-month period ended 31 December 2019 (1H2020). On an underlying basis
(which excludes the impacts of one-offs ), 1H2021 NPAT was $43.2 million, an
increase of $5.1 million (13.4%) compared with 1H2020 underlying NPAT.
Highlights for 1H2021
- NPAT of $44.1 million, up 10.6% ($4.2 million). Underlying NPAT of $43.2
million, up 13.4% ($5.1 million) on 1H2020 underlying NPAT.
- One-off items had a $0.9 million net impact on NPAT, consisting of $5.2
million of one-off gains and $4.3 million of one-off expenses.
- Gross finance receivables of $4.7 billion, up 2.7% ($62.3 million).
- Return on equity of 12.2%, up 54 basis points.
- Net interest margin of 4.28%, up 5 basis points.
- Net operating income of $125.3 million, up 5.6%.
- Cost to income ratio of 48.8%, up 2.8 percentage points. Underlying cost to
income ratio of 45.9%, up 0.8 percentage points.
- Impairment expense as a percentage of average receivables decreased from
0.40% in 1H2020 to 0.19% in 1H2021.
- FY2021 interim dividend of 4.0 cents per share, a decrease of 0.5 cents per
share from 1H2020 (as a result of Reserve Bank of New Zealand restrictions on
distributions by banks).
- Earnings per share of 7.6 cents per share, up 0.7 cents per share.
- In October 2020, Heartland Bank Limited was one of two Australasian banks
to have no reduction or adverse change to its ratings or outlook by Fitch
Ratings since January 2020.
- $5.2 million fair value gain recognised in Harmoney, which is currently
transitioning its funding model from peer-to-peer funding to wholesale
securitised funding via warehouse structures.
- Reverse Mortgages awarded Consumer Trusted Accreditation for the fourth
year in a row.
- Heartland Bank Limited awarded Canstar awards for savings accounts for
consecutive years.
- Further digitalisation of product applications and digital platforms -
including digital Home Loans, Sheep & Beef Direct online loans, and a
self-service online vehicle loan application.
- 45 participants in the 2020/2021 Manawa Ako internship programme, up from
34 in 2019/2020.
- Launch of Rocket, a mobile-led financial literacy programme for school
leavers.
See the attachments to this release, including the 1H2021 Results Release for
further information.
- Ends -
For further information, please contact the person(s) who authorised this
announcement:
Jeff Greenslade
Chief Executive Officer
M 027 382 0023
Andrew Dixson
Chief Financial Officer
M 027 263 2666
Address:
Level 3, Heartland House
35 Teed Street
Newmarket, Auckland
New Zealand
For media enquiries, please contact:
Nicola Foley
Head of Communications
M 027 345 6809
End CA:00367925 For:HGH Type:HALFYR Time:2021-02-22 09:32:53
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