Heartland posts profit

Heartland Bank has posted its full year profit, with net profit after tax coming in at $54.2 million, up 12.5 per cent or $6 million from the 2015 financial year. Chairman Geoffrey Ricketts says the company’s net tangible assets increased from $420.3 million to $433.5 million during the 2016 financial year. He adds that all of Heartland’s core divisions across the business, rural and household performed well, with net finance receivables increasing by nine per cent to $3.1 billion. Net operating income stood at $157.6 million, up nine per cent from 2015. The consumer business – which includes motor vehicle loans, personal loans and lending through the Harmoney platform – grew strongly, achieving NOI of $59.2m (up 14.9% on the 2015 Financial Year) and net receivables growth of $85.8m, to $822.1m (up 11.7% on the 2015 Financial Year). Growth in net receivables from motor vehicle loans continued strongly, up 9.5% on the 2015 Financial Year to $767.4m, and the personal loan book, although relatively small, grew exponentially – net receivables were up 616.0% on the 2015 Financial Year to $17.9m. Jeffrey Greenslade, chief executive of the company, says Heartland’s strategic focus will continue to be providing “best or only” banking products in niche markets. He adds the company’s priorities will be enhance their digital distribution, to expand operations in Australia and to grow by acquisition, if the right opportunity arises. Looking forward, Greenslade says Heartland expects underlying asset growth to continue for the 2017 financial year, and forecasts increased volumes in each of its core divisions. The company expects its net profit after tax for the 2017 financial year to be in the range of $57 million to $60 million, and says it believes “we are well-placed to meet that target.”