Heartland announces 1H2026 result
26/02/2026 08:30 NZDT, HALFYRP
NZX/ASX release
26 February 2026
Heartland announces 1H2026 result
Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) has announced a strong turnaround in net profit after tax (NPAT) for the six-month period ended 31 December 2025 (1H2026) of $48.8 million. On an underlying basis, 1H2026 NPAT was $46.1 million.
Heartland delivered steady progress towards its guidance for the financial year ending 30 June 2026 (FY2026), supported by net interest margin (NIM) expansion, improved asset quality metrics, strong Reverse Mortgage growth in New Zealand and Australia, cost control and accelerated non-strategic asset (NSA) realisation. Heartland continues to expect to deliver an underlying return on equity (ROE) of at least 7% and underlying NPAT of at least $85 million for FY2026.
Overview: 1H2026 performance
‒ Underlying ROE, Heartland’s key performance metric, was up 540 basis points (bps) to 7.3% (up 142 bps from the six-month period ended 30 June 2025).
‒ Average NIM expanded, up 51 bps to 3.92%.
‒ Underlying operating expenses (OPEX) remained steady, up $3.6 million (4.0%) primarily due to investment in Australia to support growth and technology programme costs.
‒ Underlying cost-to-income (CTI) ratio was down 304 bps to 54.6%.
‒ Consistent Reverse Mortgage growth by Heartland Bank Limited (Heartland Bank) and Heartland Bank Australia Limited (Heartland Bank Australia), with gross finance receivables (Receivables) up 15.2% and 18.9% respectively.
‒ Further momentum in Heartland Bank’s Rural portfolio through direct channels and intermediary partnerships, while Heartland Bank Australia saw solid growth in Australian Livestock Finance.
‒ Heartland Bank’s strategic shift to higher quality used and franchise Motor Finance lending saw a 4.8%5 reduction in Receivables, accompanied by significantly improved asset quality metrics.
‒ Heartland Bank’s Business Finance Receivables retracted as business conditions remained challenged – however Heartland Bank entered the second half of FY2026 (2H2026) with a compelling growth pipeline.
‒ Significant asset quality improvements reflect the benefits of Heartland Bank’s more prescriptive collections and recoveries policies, and its refined strategic focus on core product sets.
‒ NSA realisation continues to progress ahead of expectations, with a recovery rate in excess of 90%, and is tracking to be largely complete by 30 June 2026.
‒ Through NSA realisation and recent Reserve Bank of New Zealand (RBNZ) capital decisions, Heartland is well positioned for growth, holding excess capital across the group.
‒ Interim dividend of 3.5 cents per share (cps).
For the full announcement, see the attachments to this release:
Heartland 1H2026 - Results Announcement
Heartland 1H2026 - Investor Presentation
Heartland 1H2026 - Results Announcement Template
Heartland 1H2026 - Distribution Notice
Heartland 1H2026 - ASX Listing Rules 1.15.3 Statement
Heartland 1H2026 - Interim Financial Statements
Heartland Bank 1H2026 - Disclosure Statement
– ENDS –
The persons who authorised this announcement:
Andrew Dixson, Chief Executive Officer
For further information and media enquiries, please contact:
Nicola Foley, Head of Corporate Communications & Investor Relations
+64 27 345 6809
nicola.foley@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand