Heartland signals boost from tax credit

Heartland New Zealand is signalling higher earnings next year due to a tax credit.

The company formed from the merger of Canterbury Building Society, Southern Cross Building Society and Marac, said a one-off deferred tax benefit of $5 million to $6 million will be booked as an additional credit to net profit after tax for the 2012 financial year.

HNZ has previously forecast net profit after tax of between $20m to $24m for the 2012 financial year, assuming the acquisition of PGW Finance Ltd. The credit will have a positive impact on that forecast but an updated forecast will not be provided until the end of September.

The company said last week that Standard & Poor's has changed the outlook on Heartland's BBB minus credit rating to negative from stable.

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