Heartland affirms annual guidance, eyes acquisitions in consumer finance
Managing director Jeff Greenslade says that net profit is still on track to be between $51 million and $56 million in the 12 months ending June 30, 2016.
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Listed bank Heartland New Zealand [NZX: HNZ] affirmed annual earnings guidance, and said it's keen on buying rivals to build its business, especially in consumer finance.
Managing director Jeff Greenslade told shareholders at today's annual meeting in Auckland that net profit is still on track to be between $51 million and $55 million in the 12 months ending June 30, 2016, without allowing for any impact from the lender's planned capital return. Mr Greenslade said the bank is still keen on making acquisitions to expand its business but wasn't able to provide an update on its efforts to buy auto-lender Motor Trade Finances.
"We are particularly interested in the consumer market, especially anything that offers compelling distribution capability or innovative technology," Mr Greenslade said in speech notes published on the NZX ahead of the meeting. "But all acquisitions must meet our financial criteria of being value accretive."
Heartland's shareholders will today vote on whether to approve plans to simplify its structure by amalgamating its businesses into one unit, issue up to $75 million through a tier 2 capital instrument to bring its structure into line with other lenders, and allow a capital return of as much as $100 million.
The capital return, if approved, is expected to take place in April, though chairman Geoff Rickets said the payment to shareholders would depend on the uptake of the tier 2 capital issue, or if a new acquisition opportunity cropped up.
"I can confirm that the board has no reason to believe that such an opportunity will arise," Rickets said.
Heartland shares rose 0.8% to $1.34, and have advanced 18% this year.
(BusinessDesk)
An earlier version of this story incorrectly named Heartland's chairman as Bruce Irvine instead of Geoff Rickets. Mr Irvine is chairman of the banking subsidiary. The earnings guidance figure was also incorrect and has also been changed above from $56 million to $55 million.
Paul McBeth
Fri, 11 Dec 2015
Fri, 11 Dec 2015
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Heartland affirms annual guidance, eyes acquisitions in consumer finance
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