Profits due at range’s top end

Heartland NZ expects its full-year profits to be at the upper end of its guidance range. The Christchurch-based lender expects them to be at the top end of its $46-$48 million range in the 12 months ending June 30, 2015, compared to $36m in the 2014 year. Unaudited net profit for its Heartland Bank unit was $30.9m for the nine months ending March 31, 2015, compared with net profit for Heartland NZ of $36.1m. This was primarily due to the portion of Heartland’s reverse-mortgage book held outside the bank. The company is targeting expansion through niche markets, particularly in the consumer finance sector. Last year it bought the reverse-mortgage business from Seniors Money and has also taken a 10 per cent stake in peer-to-peer lender Harmoney for $3.5m to accelerate growth. The lender estimates its stake in Harmoney is now worth $5m, while about $17m has been lent through the online platform.