Sharechat Logo

Heartland Group Holdings Limited (NZX: HGH) Heartland Announces Half Year NPAT of $44.1 Million

Monday 22nd February 2021

Text too small?

Heartland Group Holdings Limited 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.

Interim dividend

Heartland is pleased to declare a 1H2021 interim dividend of 4.0 cps (0.5 cps down on 1H2020). The dividend yield of 4.8% compares with 8.3% in 1H2020. As was the case for the 2H2020 final dividend, the dividend decrease reflects restrictions imposed by the RBNZ on distributions by banks in New Zealand. However, the continued growth in Heartland’s Australian operations enable it to distribute earnings derived from assets held outside of Heartland Bank. Heartland expects to return to a pay-out ratio aligning to historical levels once the RBNZ restrictions are removed. The interim dividend will be paid on Tuesday 16 March 2021 (Payment Date) to shareholders on the company’s register as at 5.00pm on Tuesday 2 March 2021 (Record Date) and will be fully imputed.

Heartland has a Dividend Reinvestment Plan (DRP), giving eligible shareholders the opportunity to reinvest some or all of their dividend payments into new ordinary shares. The DRP will apply to the final dividend with a 2.0% discount.

Looking forward

Heartland’s 1H2021 NPAT has exceeded expectations, particularly due to a much lower than forecast impaired asset expense and pleasing origination levels in core portfolios. However, aggregate balance sheet growth has been modest (primarily due to elevated repayments) and this may moderate the uplift in net operating income ordinarily experienced in the second half of the financial year.

Heartland believes customer repayment activity will normalise, and impaired asset expense levels will be in line with budget for the remainder of the financial year. Provided this occurs and the economic conditions continue to improve, Heartland expects NPAT for FY2021 to be at the upper end of the guidance range of $83 million to $85 million.

Please see the links below for details:

Heartland - 1H2021 Results Release

Heartland - 1H2021 Investor presentation

Heartland - NZX Results Announcement (template form)

Heartland - NZX Distribution Notice

Heartland - HGH Financial statements

Heartland - HBL Disclosure Statement

Source: Heartland Group Holdings Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Deferral of FDA consideration of enforcement discretion
MHJ - Response to ASX Query
CDI 2022 Interim Results
August 10th Morning Report
TWL - Resignation of Chief Operating Officer
NZA - Funding arrangements following Board changes
August 9th Morning Report
August 8th Morning Report
BIF - Potential material valuation increase for the fund
Nominations open for Fonterra Board of Directors' Election