Heartland reveals Q1 disclosure statement

Heartland Bank plans to raise up to approximately $59 million at $1.70 per share in a discounted rights offer to shareholders to help fund an expanding loan book, which increased at an annual pace of 16 per cent in the September quarter. Heartland will sell shares at $1.70 apiece through a 1-for-15 pro rata rights issue, which it plans to use to help fund credit growth and maintain a healthy balance sheet. Furthermore, chief executive Jeff Greenslade stated that, "Given the size of the offer and the intended use of proceeds - which is to support continued strong asset growth over time - Heartland did not consider that underwriting provided value for shareholders." The unaudited net profit after tax for Heartland was $16 million for the three months ended 30 September 2017, an increase of 12 per cent from the corresponding three-month period in 2016. The result was driven by continued growth in net finance receivables across all divisions. Net finance receivables grew $138 million to $3,684 million, which equates to 16 per cent annual growth. Heartland expects underlying asset growth to continue during the remainder of the 2018 financial year, and is pleased to reaffirm its forecasted range for the 2018 financial year of $65 million to $68 million.