sign up log in
Want to go ad-free? Find out how, here.

Heartland Bank sees growth in key products and falling funding costs leading it away from troubled legacy property

Business
Heartland Bank sees growth in key products and falling funding costs leading it away from troubled legacy property
<a href="http://www.shutterstock.com/">Image sourced from Shutterstock.com</a>

By Gareth Vaughan

Heartland Bank is touting strong growth from its "hero products" and falling funding costs as it aims for an about fivefold increase in annual profit.

Heartland, as expected, yesterday posted a 71% fall in annual profit to $6.9 million, after its bottom line was savaged by pre-tax write-downs stemming from its non-core property holdings. It also reiterated June's forecast for June 2014 year net profit after tax of between $34 million and $37 million.

The bank, formed through the merger of Marac Finance, CBS Canterbury and the Southern Cross Building Society two and a half years ago, targets small and medium sized businesses, the rural sector and the retail and consumer sectors. Heartland bought the good loans of rural lender PGG Wrightson Finance in August 2011.

A year ago CEO Jeff Geenslade outlined six "hero products" which he said were attractive due to being high margin and low risk. Heartland yesterday disclosed annual growth figures for its heroes.

This is an abridged version of this article. The full version was published in our email for paid subscribers. See here for more details and to subscribe.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.