Heartland announces half year profit of $39.9 million

NZX/ASX Release Heartland announces half year profit of $39.9 million 18 February 2020 Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) achieved a net profit after tax (NPAT) of $39.9 million for the six months to 31 December 2019 (1H2020), an increase of 20.4% from the six months to 31 December 2018 (1H2019). Highlights for 1H2020 o NPAT of $39.9 million, up 20.4% ($6.7 million). o Gross finance receivables (Receivables) of $4.6 billion, up $177 million (8% annualised growth) since June 2019. o Return on equity (ROE) of 11.7%, up 165 basis points (bps). o Net interest margin (NIM) of 4.72%, flat on the six months to 30 June 2019 (2H2019) and 5 bps down compared to 1H2019. o Cost to income ratio (CTI) of 46.0%, up 3.5%. After allowing for changes in the accounting treatment and one-off impacts, the underlying CTI is 43.3%, up 4.3% as a result of significant investments. o 32% ($4.3 million) lower impairment expense reflecting significant efforts to enhance collections processes and discipline. o 2020 Interim Dividend of 4.5 cents per share (cps), an increase of 1.0 cps from 1H2019. o Significant progress made on implementing Heartland's workplan to address improvements across conduct and culture. o 47% of employees were aged 35 years and under. o 35 interns joined Heartland Bank's Manawa Ako internship programme - 10 more interns than last year's intake. o Heartland Bank awarded Canstar's 2019 Bank of the Year - Savings and Canstar's 5-Star Rating for Outstanding Value Savings Account for its Direct Call Account. o Australian Reverse Mortgages awarded Money Magazine's Best Reverse Mortgage 2019. Please find the following material attached: o Heartland Group 2020 Interim Results Announcement o Heartland Group 2020 interim results announcement (NZX template) o Heartland Group 2020 Distribution Notice o Heartland Group 2020 Investor Presentation o HGH Financial Statements - Ends - For further information, please contact: Jeff Greenslade Chief Executive Officer M 021 563 593 Cherise Barrie Chief Financial Officer M 027 503 6119 For investor enquiries, please contact: Andrew Dixson Head of Corporate Finance M 021 263 2666 For media enquiries, please contact: Nicola Foley Senior Communications Manager M 027 345 6809 End CA:00348586 For:HGH Type:HALFYR Time:2020-02-18 09:36:48