Why to consider 3 NZX financial stocks in 2022?

 Highlights

• There remains significant uncertainty on NZ’s recovery amid the COVID-19 pandemic and rate hike prospects. 
• Supply chain issues, labour scarcities and increasing prices continue to be major challenges. 
• Heartland, Geneva and ANZ have performed well and have plans to grow.

With the increasing spread of the COVID-19 variant, Omicron and prospects of interest rate hikes, there is uncertainty surrounding the recovery of the NZ economy. 

New Zealand’s GDP dropped 3.7% in the September quarter of 2021, after registering a growth of 1.5% and 2.4% in Q1 and Q2 of 2021. However, the country’s GDP is likely to bounce back to positive growth in December quarter results. Increased vaccination levels and the new traffic light system have allowed businesses to open up. 

On this note, let’s skim through these 3 NZX financial stocks. 

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Heartland Group Holdings Limited (NZX:HGH; ASX:HGH) 

In FY21, Heartland Group generated a net profit of $87 million and increased its financing receivables by 8% to $5 billion. For the fourth year in a row, the bank was selected Canstar's 2021 Bank of the Year - Savings. 

Related Read: Which are top 5 NZX dividend stocks to explore in 2022? 

The Group is on pace to meet its sales target of $93 million-$96 million. Heartland's GHG emissions in FY19 were 17% lower than in FY19. 

HGH ended the day 0.39% in red to close at $2.58. 

Geneva Finance Limited (NZX:GFL) 

For the six months ended 30 September 2021, Geneva made a pre-tax profit of $4 million, up 22% on pcp, and a profit after tax of $3 million. In the first four months of the period, new business originations in all of GFL's trading entities were strong.  

RELATED READ: These top 3 NZX financial stocks can be explored in 2022 

Trading was attained at lower levels by GFL due to August's lockdown restrictions. GFL made an interim dividend payment of 1.25cps on 30 November and is devoted to increasing profit margins. 

GFL ended the day 1.45% in red to close at $0.68. 

Australia and New Zealand Banking Group Limited (NZX:ANZ; ASX:ANZ) 

ANZ delivered good margin result and grew after tax profit in its biggest business, Australian Retail & Commercial in FY21. The Group’s home loan revenue rose over 10% in the period. 

DO READ: How did 2 NZ banks fare in 2021? 

ANZ witnessed its top performance in NZ with strong revenue and profits. By the end of 2021, ANZ plans to offer ANZ Plus and a digital home loan product. 

ANZ ended the day flat to close at $30.4. 

Bottom Line 

Supply chain issues, labour scarcities and rising prices continue to be major challenges faced by the NZ economy.