AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Net profit tracks well toward full-year target
- Significant growth in Reverse Mortgages and Livestock Finance
- Improved asset quality in Motor Finance portfolio
Heartland Group Holdings Limited (ASX:HGH) has delivered a solid trading update for the third quarter of FY2025, reporting a net profit after tax (NPAT) of $16.6 million. The financial services provider remains on course to meet its full-year target of at least $45 million NPAT by 30 June 2025.
A key highlight from the quarter was the expansion in net interest margin (NIM), which rose by 28 basis points to reach 3.92%. This uplift was largely driven by improved cost of funds, reflecting effective capital management strategies and a focus on profitability.
One of the standout performances came from Heartland Bank’s Motor Finance segment, which recorded notable asset quality improvements. Enhanced collections and recoveries policies have contributed to better-than-expected early recoveries on loans written off in February 2025. As a result, the non-performing loan (NPL) ratio has decreased to 3.31%, pointing to stronger portfolio health and better credit outcomes.
Heartland has also experienced robust receivables growth, particularly in its Reverse Mortgages and Livestock Finance offerings across both New Zealand and Australia. Reverse Mortgages receivables increased by 14.7% to $1,192.3 million during the quarter, highlighting strong demand among senior homeowners. At the same time, Livestock Finance receivables grew by a remarkable 57.1% to $189.9 million, supported by favourable agricultural conditions and rising customer engagement.
Cost management remained on track, with operating expenses stabilising at $32.5 million for the quarter. The company continues to focus on operational efficiency, aided by ongoing cost discipline and strategic expense controls in the second half of FY2025.
Heartland is also actively progressing the realisation of non-strategic assets. During Q3, there was tangible progress on these initiatives, including an accelerated exit from its Online Home Loans business. This move aligns with the company's broader goal of focusing more sharply on its core lending portfolios where it sees long-term value and scale opportunities.
Heartland Group (HGH) continues to show resilience and forward momentum, supported by its diversified lending portfolio, improved asset quality, and disciplined financial management. The outlook remains positive as the group advances its strategic priorities into the final quarter of the financial year.
