Bank issues profits advisory
Heartland NZ expects its net profits after tax (NPAT) for the year ending June 30, 2015, will be about $48m, which – as previously advised – is at the upper end of its $46-$48m range. The company intends to announce its full-year results on August 18 and its preliminary results are subject to finalisation. Given heightened market interest in New Zealand’s dairy sector, Heartland advises its exposure to dairy is currently 7.6 per cent of its total lending book. The average loan to value ratio (LVR) for its dairy exposures is 61 per cent. “However, it is important to note LVRs are only one of the indicators of loan quality,” says Jeff Greenslade, chief executive officer, in a statement to the NZX. “When Heartland’s dairy clients are experiencing financial stress as a result of lower pay-out forecasts, we are working with them to fund working capital shortfalls where appropriate and ensuring they have access to appropriate support – including emotional support through the Rural Support Trust and Farmstrong.” Heartland advises its preliminary forecast range for NPAT for the financial year ending June 30, 2016, is $51-$55m, which includes an allowance for estimated impairments.