Heartland bank posts profit

Heartland Bank Limited (NZX: HBL) has achieved a net profit after tax (NPAT) of $60.8 million for the full year, ending June 30, 2017 (FY2017). This is an increase of 12 per cent from the previous financial year, which ended June 30, 2016 (FY2016). According to a statement, the increase in profitability was driven primarily by growth in receivables across all divisions. These included the household, business and rural sector.  During this time, household net receivables increased by $227.8 million with reverse mortgages, motor vehicles loans and personal loans (including Harmoney) increasing by $126.1 million, $72 million and $40 million respectively. Meanwhile, business and rural divisions’ net receivables increased by $96.2 million and $123.0 million. Throughout the year Heartland acquired a 25 per cent shareholding in Fuelled Limited, an online small-to-medium business (SME) lender. Alongside this equity investment, a $2.0 million committed debt facility was provided to enable Fuelled to accelerate its Australasian growth plans. Fuelled is a New Zealand-based business whose simple on-demand service enables SMEs to receive an immediate cash advance on their outstanding invoices. Fuelled’s integration with Xero enables its advanced credit assessment engine to make real time credit and financing decisions online. The directors of Heartland have resolved to pay a final dividend of 5.5 cents per share. The final dividend will be paid on 21 September 2017 to shareholders on the company’s register as at 5.00pm on 7 September 2017 and will be fully imputed. The Dividend Reinvestment Plan (DRP) will apply to the final dividend with a 2.5 per cent discount .