Heartland Bank chief executive Jeff Greenslade. Photo / File
Heartland Bank lifted third-quarter profit 11 per cent on continued lending growth and said it expects annual earnings to be at the upper end of its previously advised range of $65 million to $68m.
The Auckland-based lender generated a profit of $17.5m in the quarter, taking net profit to $48.6m
in the nine months ended March 31, up from $44.9m a year earlier.
"While growth has been maintained overall, Heartland's strategy has been to grow those areas which are core to future growth, including motor, reverse mortgages, small business, livestock and personal lending. This has meant a reduced focus on larger business and rural relationship lending which, as a result of some significant repayments, has reduced the net growth in receivables for business and rural," it said.
According to the bank, net finance receivables stood at $3.9 billion as at March 31, versus $3.6b as at June 30, which equates to 13 per cent annualised growth.
Heartland also said it saw a continued strong net interest margin of 4.49 per cent in the three months to March 31, bringing the net interest margin to 4.43 per cent for the nine-month period, which is consistent with the half year.
