Motor-vehicle lending increases

Net profit after tax posted by Heartland Bank increased by 11 per cent to $17.5 million for the three months ending March 31 compared to the same period of 2017, and by eight per cent to $48.6m over nine months.

Net finance receivables grew from $3,546m as of June 30 last year to $3,882m by the end of March, which equates to 13 per cent annualised growth – and nine per cent over the nine-month period.

Strong net interest margin of 4.49 nine per cent was achieved for the three months and 4.43 per cent for the nine months. 

“Impairment expense was similar to the previous quarter, but above the corresponding quarter of the last financial year,” the company reports. “It has been impacted by growth in receivables and increased impairment in motor and personal loans.

“While growth has been maintained overall, Heartland’s strategy has been to expand areas core to it, such as motor, reverse mortgages, small business, livestock and personal lending.”

The bank expects NPAT for the financial year to be at the upper end of its advised $65-$68m range.