Heartland’s FY2023 result demonstrates resilience

NZX/ASX release 29 August 2023 Heartland's FY2023 result demonstrates resilience Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce a net profit after tax (NPAT) of $95.9 million for the financial year ended 30 June 2023 (FY2023). On an underlying basis, FY2023 NPAT was $110.2 million. NPAT increased $0.7 million (0.8%), and on an underlying basis, $14.1 million (14.6%), compared with the financial year ended 30 June 2022 (FY2022). Highlights for FY2023 Financial highlights - NPAT of $95.9 million, up 0.8% ($0.7 million) on FY2022 NPAT. Underlying NPAT of $110.2 million, up 14.6% ($14.1 million) on FY2022 underlying NPAT. - One-off or non-cash technical items had a $14.3 million net impact on NPAT. - Gross finance receivables (Receivables) of $6.8 billion, up 10.1% ($625.5 million). - Underlying return on equity (ROE) of 11.9%, down 68 basis points (bps). - Net interest margin (NIM) of 3.97%, down 8 bps. Underlying NIM of 4.00%, down 16 bps. - Net interest income (NII) of $282.0 million, up 12.7%. Underlying NII of $283.9 million, up 14.3%. - Underlying cost to income (CTI) ratio of 42.0%, down 53 bps on FY2022. - Underlying impairment expense ratio of 0.36%, up 7 bps. - FY2023 final dividend of 6.0 cents per share (cps), resulting in a FY2023 total dividend of 11.5 cps, up 0.5 cps on the FY2022 total dividend. - Earnings per share (EPS) of 14.0 cps, down 2.1 cps. Underlying EPS of 16.0 cps, down 0.3 cps. Strategic highlights - $199 million raised through 2022 equity raise to fund growth ambitions for existing businesses and repay acquisition-related bridge debt of $174 million (A$158 million). - Completed the integration of StockCo Australia into Heartland. - Signed a conditional share purchase agreement for the purchase of Challenger Bank Limited (Challenger Bank) on 20 October 2022, subject to obtaining the requisite regulatory approvals. - Australian Reverse Mortgages business increased market share to 38.4%. - Heartland Bank Limited (Heartland Bank) awarded Canstar New Zealand's Bank of the Year - Savings award for the sixth consecutive year. - Nearing completion of the upgrade of Heartland Bank's core banking system. For the full announcement, see the attachments to this release: - Heartland FY23 Results Announcement - Investor Presentation - Heartland NZX Results Announcement Template - Heartland Distribution Notice - ASX Listing Rules 1.15.3 Statement - Heartland Group Holdings Financial Statements - Heartland Bank Disclosure Statement - LTI Buyback Disclosure Document - ENDS - The person(s) who authorised this announcement: Jeff Greenslade, Chief Executive Officer Andrew Dixson, Chief Financial Officer For further information and media enquiries, please contact: Nicola Foley, Group Head of Communications +64 27 345 6809 nicola.foley@heartland.co.nz Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand End CA:00417248 For:HGH Type:FLLYR Time:2023-08-29 09:14:17