Heartland announces FY2026 result and outlook for FY2027

NZX/ASX release 20 August 2026 Heartland announces FY2026 result and outlook for FY2027 Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) has announced a net profit after tax (NPAT) for the financial year ended 30 June 2026 (FY2026) of $93.2 million (up from $38.8 million in the financial year ended 30 June 2025 (FY2025)). On an underlying basis, FY2026 NPAT was $90.4 million (up from $46.9 million in FY2025). Through FY2026, Heartland has established a strong foundation to support its next phase of growth. Heartland met all FY2026 underlying guidance metrics, delivering an improved return on equity (ROE) and turnaround in profitability, driven by margin expansion and strengthened asset quality. Overview of FY2026 performance: ‒ ROE was 7.3%. Underlying ROE increased 286 basis points (bps) to 7.1%. ‒ Average net interest margin (NIM) was 3.95%. Average underlying NIM expanded 36 bps to 3.98%. ‒ Operating expenses (OPEX) were $196.0 million, and the cost-to-income (CTI) ratio was 54.1%. Despite underlying OPEX increasing $12.2 million (6.7%) to $193.5 million, the underlying CTI ratio improved 155 bps to 54.6%. ‒ The impairment expense ratio decreased 55 bps to 0.45% as Heartland Bank Limited (Heartland Bank) significantly strengthened its asset quality. Heartland Bank cleared all Motor Finance non-performing loans (NPLs) greater than 180 days past due (DPD) and the portfolio’s arrears continue to outperform the industry average. ‒ Reverse Mortgages for both Heartland Bank and Heartland Bank Australia Limited (Heartland Bank Australia) continued to perform well, with gross finance receivables (Receivables) up 16.8% and 19.7% respectively. ‒ Heartland Bank’s Rural portfolio delivered strong Receivables growth of 10.8%. ‒ The non-strategic asset (NSA) realisation programme has successfully concluded, with a 94% recovery rate. ‒ Heartland Bank and Heartland Bank Australia reached key technology transformation programme milestones with the launch of Reverse Mortgages onto the new platforms. ‒ In June 2026, Heartland announced a proposal to acquire from Toi Foundation all TSB Bank Limited (TSB) shares on issue and subsequently merge Heartland Bank and TSB to create a New Zealand challenger bank of scale, with a regional focus. See page 3 for more information. ‒ Final dividend of 3.5 cents per share (cps). For the full announcement, see the attachments to this release: Heartland FY2026 - Results Announcement Heartland FY2026 - Investor Presentation Heartland FY2026 - Results Announcement Template Heartland FY2026 - Distribution Notice Heartland FY2026 - ASX Listing Rules 1.15.3 Statement Heartland FY2026 - Financial Statements Heartland Bank FY2026 - Disclosure Statement – ENDS – The person who authorised this announcement: Andrew Dixson, Chief Executive Officer For further information and media enquiries, please contact: Nicola Foley, Head of Corporate Communications & Investor Relations +64 27 345 6809, nicola.foley@heartland.co.nz Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand