Heartland says 2016 profit may rise as much as 15%, affirms 2015 guidance

Thursday 30th July 2015

Heartland New Zealand, the Auckland based lender, said profit may rise as much as 15 percent in 2016, while affirming its guidance for earnings this year to reach the top of its forecast range.

Net profit in the year ending June 30, 2016, would be between $51 million and $55 million, the company said in a statement. It is scheduled to release its 2015 results on August 18, and affirmed profit would be about $48 million, up from $36 million in 2014. The 2016 guidance includes an allowance for estimated impairments, it said.

Heartland said the dairy sector amounts to about 7.6 percent of its total lending book, with an average loan to value ratio for the lender's dairy exposures is 61 percent. It gave the details in the wake of plunging global dairy prices, which have stretched the balance sheets of some farmers.

Heartland shares last traded at $1.14, and have increased 0.9 percent this year.

BusinessDesk.co.nz

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