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Highlights
- Heartland announced that it would hold its AGM virtually on 28 October 2021.
- The meeting will be conducted online due to New Zealand’s current COVID-19 Alert Level status.
- Heartland expects its NPAT to be between $93 million and $96 million.
Heartland announced on Tuesday that the Group’s AGM would be held online only due to the current COVID-19 Alert Level status in New Zealand. The meeting is scheduled to begin at 2 pm on 28 October 2021.
HGH also informed that shareholders would be able to view the presentation, vote on resolutions and ask questions via the online platform during the meeting. They would need their shareholder number for verification purposes to join the meeting online.
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The Group has released a Virtual Annual Meeting Online Guide to provide details on joining online.
COVID-19 impact
The COVID-19 pandemic had a benign impact on HGH’s portfolios that initially predicted. However, the continued prevalence of COVID-19 and new variants, vaccination rates, lockdowns in Australia and NZ, persistent uncertainty on border reopening has given a rise to an uncertain environment.
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Moreover, the economic stimulus released to fight economic disruptions from COVID-19 has led to a potential inflationary atmosphere, a steepening interest rate situation, and a higher cost of labour and inputs in the medium term.
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The Group’s COVID-19 economic overlay of $9.6 million remained unutilised. The cover was taken to provide a buffer against any future losses that the uncertainty of COVID-19 may give rise to. The overlay remains available for any future losses to the Group due to COVID-19 as a consequence of the pandemic.
FY21 Performance
Heartland witnessed a subdued performance in H1 FY21 with lower business and consumer confidence. Growth in portfolios picked up in H2 of FY21. HGH reported a 20.9% rise in its NPAT and a 49.1% decrease in its impairment expenses to $87 million and $15 million in FY21, respectively.
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Heartland’s borrowing witnessed a rise of $94.4 million due to a $144.2 million rise in other borrowings, which partly offset a 1.5% decrease in deposits of $49.7 million.
The Group’s total assets rose 6.9% during FY21 due to an 8% growth in receivables. HGH paid a final dividend of 7cps on 15 September 2021 due to the easing of RBNZ restrictions on dividend distribution by banks.
On 19 October, at the time of writing, HGH was trading at $2.35, up 0.86%.
Bottom Line
Heartland plans to expand its product reach through digital platforms in FY22. The Group expects its NPAT to be between $93 million and $96 million due to uncertainties related to the COVID-19 impact.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)