Heartland announces full year NPAT of $87.0 million

NZX/ASX release Heartland announces full year NPAT of $87.0 million (or $87.9 million on an underlying basis after removing the impacts of one-offs) 24 August 2021 Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce a net profit after tax (NPAT) of $87.0 million for the financial year ended 30 June 2021 (FY2021), an increase of $15.1 million (20.9%) compared with the financial year ended 30 June 2020 (FY2020). On an underlying basis, FY2021 NPAT was $87.9 million, an increase of $11.0 million (14.3%) compared with the FY2020 underlying NPAT. Highlights for FY2021 - NPAT of $87.0 million, up 20.9% ($15.1 million). Underlying NPAT of $87.9 million, up 14.3% ($11.0 million) on FY2020 underlying NPAT. - One-off items had a $0.8 million net impact on NPAT, consisting of $4.1 million of one-off net gains and $6.9 million of one-off expenses (net of tax). - Gross finance receivables (Receivables) of $5.0 billion, up 7.9% ($368.5 million). - Return on equity (ROE) of 11.9%, up 144 basis points (bps). - Net interest margin (NIM) of 4.35%, up 2 bps. - Net interest income (NII) of $233.5 million, up 7.8%. - Cost to income (CTI) ratio of 46.8%, up 1.5 percentage points (pps). Underlying CTI ratio of 44.8%, down 0.1 pps, and CTI ratio of 43.9% for the second half of FY2021 (2H2021). - Impairment expense as a percentage of average receivables decreased from 0.65% in FY2020 to 0.31% in FY2021. - FY2021 final dividend of 7.0 cents per share (cps), taking FY2021 total dividend to 11.0 cps - an increase of 4.0 cps from FY2020 due to the easing of restrictions imposed by the Reserve Bank of New Zealand (RBNZ) on distributions by banks in New Zealand. - Earnings per share (EPS) of 14.9 cps, up 2.4 cps. - Heartland Bank Limited (Heartland Bank) remains one of two Australasian banks to have no reduction or adverse change to its ratings or outlook by Fitch Ratings since January 2020. - Further digitalisation and continuous integration of product applications and platforms in New Zealand and Australia. - New Zealand Reverse Mortgages awarded Consumer Trusted Accreditation (fourth consecutive year). - Australian Reverse Mortgages awarded Your Magazine's 5-Star Lender Award and InfoChoice's Best Reverse Mortgage Award. - Heartland Bank awarded Canstar Savings Bank of the Year 2021 (fourth consecutive year), and 5-Star Ratings for Outstanding Value for its Direct Call and YouChoose accounts. - Heartland Bank became the National Foundation for Deaf and Hard of Hearing's first Hearing Accredited Workplace. See the attachments to this release, including the FY21 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 021 263 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:00377825 For:HGH Type:FLLYR Time:2021-08-24 09:33:05