Heartland Group Holdings Ltd. · NZX:HGH
Heartland — FY2026 Earnings Presentation
50 slides from Heartland's earnings presentation, Jun 30, 2026
Slide 1: FY2026 Full Year Results
Investor Presentation FY2026 Full Year Results For the 12 months ended 30 June 2026
Slide 2: Disclaimer and non-GAAP measures
Disclaimer and non-GAAP measures This presentation has been prepared by Heartland Group Holdings Limited (NZX/ASX: HGH) (the Company or Heartland) for the purpose of briefings in relation to its Financial Statements. Important notice FY2026 underlying results exclude transaction costs, the impact of
Slide 3: Contents
Contents 01 Executive summary 4 – 13 02 New Zealand banking 14 – 28 03 Australian banking 29 – 41 04 Outlook 42 – 44 Appendix Additional information 45 – 50 3
Slide 4: Executive summary
01 Executive summary Andrew Dixson Chief Executive Officer, Heartland Group
Slide 5: FY2026 summary
FY2026 summary Heartland met all underlying FY2026 guidance metrics, delivering an improved ROE and turnaround in profitability, driven by margin expansion and strengthened asset quality – establishing a strong foundation to support its next phase of growth. Overview Heartland FY2026 underlying • NP
Slide 6: Group financial results
Group financial results 8m NZ, Reported Underlying Reported v Underlying FY26 FY25 Movement FY26 FY25 Movement FY26 FY25 NII $337.9m $307.3m $30.6m 10.0% $340.3m $307.3m $33.0m 10.7% ($2.4m) - OOI1 $24.0m $15.6m $8.4m 54.1% $14.0m $15.5m ($1.5m) (9.8%) $10.0m $0.1m NOI $361.9m $322.9m $39.
Slide 7: Reported vs. underlying results
Reported vs. underlying results The difference between reported and underlying results in FY2026 was $2.8m. FY2026 FY2025 Comments Reported NPAT $93.2m $38.8m ‒ De-designation of derivatives - $1.1m Benefit from Harmoney (equity ‒ Fair value changes on equity investments held ($3.1m) ($1.6m) investm
Slide 8: Capital
Capital Heartland remains well placed to cater for organic growth with excess capital held across the group. • The RBNZ’s final capital settings announced in December 2025 are expected Applying Heartland Bank’s expected risk weight changes2 to the 30 June 2026 to have several benefits to Heartland B
Slide 9: NSA realisation progress
NSA realisation progress Heartland’s NSA realisation programme has successfully concluded, with a 94% recovery rate. • As at 30 June 2026, the residual $94.0m NSA portfolio included: • Since 30 June 2026, the Properties NSA has been successfully realised. • $38.1m of Home Loans scheduled to run down
Slide 10: Proposed merger of Heartland Bank and TSB
Proposed merger of Heartland Bank and TSB The proposed merger will create a New Zealand challenger bank of scale with a regional focus. • On 2 June 2026, Heartland announced it had entered into a conditional merger Diversified and differentiated product set implementation agreement with Toi Creation
Slide 11: Proposed merger of Heartland Bank and TSB
Proposed merger of Heartland Bank and TSB With a materially increased scale and diversified product set, TSB Heartland Bank will have an enhanced ability to serve customers throughout their financial lifecycle. New Zealand5 Australia Heartland Group5 Home Loans 44% Core lending products1 Reverse
Slide 12: Proposed merger of Heartland Bank and TSB timetable
Proposed merger of Heartland Bank and TSB timetable The Proposed Transaction remains subject to various approvals. Subject to satisfaction of the Toi Foundation trustee approval condition, Heartland’s shareholder meeting to vote on the Proposed Transaction will be held on 30 September 2026. Key even
Slide 13: Shareholder return
Shareholder return 7.1% Underlying ROE3 Underlying ROE 11.9% 2H2026 6.8% vs 1H2026 7.3% 9.8% 10.9% 7.1% 9.8% 4.2% 6.8% 3.5 cps 12.1% 10.2% 6.0% Final dividend 1.9% 7.3% up 1.5 cps vs FY2025 FY23 FY24 FY25 FY26 1H 2H 8.0%1 Dividend yield 16.0 Underlying EPS (cps)4 13.5 • Heartland has declared a FY20
Slide 14: New Zealand banking
02 New Zealand banking Leanne Lazarus Chief Executive Officer, Heartland Bank Kerry Conway Chief Financial Officer, Heartland Bank
Slide 15: NZ banking: FY2026 summary
NZ banking: FY2026 summary Heartland Bank materially met its underlying guidance for all key financial metrics. NIM expanded on FY2025, asset quality materially improved and Heartland Bank saw strong Reverse Mortgage and Rural lending performance. FY2026 summary NZ Banking FY2026 underlying Growth Q
Slide 16: Financial results
Financial results Reported Underlying FY26 FY25 Movement FY26 FY25 Movement NII $206.8m $212.4m ($5.6m) (2.6%) $206.8m $212.4m ($5.6m) (2.6%) OOI1 $19.0m $21.3m ($2.4m) (11.1%) $15.8m $21.3m ($5.4m) (25.2%) NOI $225.8m $233.7m ($7.9m) (3.4%) $222.7m $233.7m ($10.9m) (4.7%) OPEX $127.4m $
Slide 17: Receivables
Receivables Reverse Mortgages and Rural1 delivered strong Receivables growth, while Motor Finance2 and Business Finance3 focused on asset quality and pricing for risk. 1 2 3 4 5 Receivables $m 4,710 1,720 1,441 675 639 38 4,512 38 14 25 4,589 17 Note: FY2026 growth in Receivables by portfolio exclud
Slide 18: Underlying NIM
Underlying NIM1 FY2025 NIM FY2026 NIM Avg. 3.91% Avg. 4.08% FY2026 summary 4.13% 4.15% • NIM benefitted from a low cost of funds 4.11% 4.08% 4.09% throughout FY2026 due to lower funding 4.18% 4.12% requirements. 4.09% 4.06% >4.05% 4.02% • Average NIM increased 17 bps to 4.08% despite challenging com
Slide 19: Underlying OPEX
Underlying OPEX $1.2m (0.9%) FY2026 summary $2.3m (-1.8%) • Total underlying OPEX of $126.9m, down 1.9 (1.3) $1.2m (0.9%). 0.9 (2.2) • Increased staff costs were primarily due to 1.8 (1.9) 1.2 2.2 restructuring costs and the re-introduction 129.3 (3.8) 128.1 of a LTI Scheme ($0.6m). 126.9 • Increase
Slide 20: Impairment and provisioning
Impairment and provisioning Impairment expense ($m) Impairment expense ratio FY2025 FY2026 8.1 0.67% 8.3 1.40% 0.98% 7.1 4.4 10.8 13.0 14.1 4.7 4.6 6.6 6.1 6.2 8.2 0.70% 0.71% 4.0 4.7 (2.8) (0.8) 0.61% (4.6) (4.2) (9.9) (1.0) (0.7) (1.1) <0.48% (5.2) 0.39% (3.1) 4Q2025 1Q2026 2Q2026 3Q2026 4Q2026 Co
Slide 21: Asset quality
Asset quality NPL ratios1 Motor Finance2 ($m) 3.21% 3.22% 2.2%, $37.9 3.04% 1.9%, $32.3 0.8%, 2.81% 1.7%, $28.0 $13.2 0.6%, 1.6%, $26.4 $9.8 0.6%, 2.40% 0.4%, 2.36% $8.9 $7.3 2.07% 2.06% 1.92% 1.5%, 0.7%, $11.9 1.3%, $24.7 1 1.3%, 1.1%, $22.0 0.7%, 24.4% $19.1 $19.0 1.38% 26.0% , 27.8%, 28.4%, , $9.
Slide 22: Regulatory capital
Regulatory capital New Zealand Banking Group1 – Total Capital movement $m Heartland Bank is well positioned for future growth, with capital well above regulatory minimums. 50 (56) 16 41 59 42 11 • During FY2026, the NSA realisation programme released $31.7m of capital, which has been redirected to f
Slide 23: NZ lending performance: Motor Finance
NZ lending performance: Motor Finance1 Outlook $1,720m Receivables as at 30 Jun 2026 +$25m, 1.5%2 since 30 Jun 2025 • FY2027 growth: >3.5% Includes $1,511m Motor Lending2 and $209m Wholesale Lending Dealer Receivables mix $73.7m NOI as at 30 Jun 2026 -2.0% vs FY2025 50% 47% 49% 44% 46% Includes $70.
Slide 24: NZ lending performance: Reverse Mortgages
NZ lending performance: Reverse Mortgages Outlook $1,441m Receivables as at 30 Jun 2026 +$207m, 16.8% since 30 Jun 2025 • FY2027 growth: > 18.0% Receivables growth $65.9m NOI as at 30 Jun 2026 +13.0% vs FY2025 25.7% 21.7% 20.2% 19.7% 19.6% 18.5% 15.8% 15.1% 14.0% • Reverse Mortgage Receivables growt
Slide 25: NZ lending performance: Rural
NZ lending performance: Rural1 Outlook $675m Receivables as at 30 Jun 2026 +$66m, 10.8%2 since 30 Jun 2025 • FY2027 growth: > 5.0% Includes $390m Rural Lending2 and $285m Livestock Finance Rural1 Receivables ($m) $29.7m NOI as at 30 Jun 2026 -3.3% vs FY2025 397 251 285 Includes $19.3m Rural Lending2
Slide 26: NZ lending performance: Business Finance
NZ lending performance: Business Finance1 Outlook $639m Receivables as at 30 Jun 2026 -$141m, -18.1% since 30 Jun 2025 • FY2027 growth: <-7.5% Includes $519m Asset Finance and $120m Business Relationship Business Finance1 Receivables ($m) $36.2m NOI as at 30 Jun 2026 -18.4% vs FY2025 172 158 145 138
Slide 27: NZ technology programme
NZ technology programme Building on prior investment in its modern technology foundations, Heartland Bank is adding an AI- enabled automation and integration layer with Pega – creating simpler, faster, fully digital journeys. Modern foundations Resilient, secure, scalable platforms Common Group plat
Slide 28: NZ technology programme: Progress report
NZ technology programme: Progress report FY2026 progress FY2027 focus • On track. Deliverables and objectives Overall status • No change to delivery timetable. • Commenced Motor Finance discovery phase. Programme delivery • Completed initial production deployment of the Pega platform. • Complete Rev
Slide 29: Australian banking
03 Australian banking Michelle Winzer Chief Executive Officer, Heartland Bank Australia Kerry Conway Chief Financial Officer, Heartland Bank
Slide 30: AU banking: FY2026 summary
AU banking: FY2026 summary Heartland Bank Australia materially met its underlying guidance for all key financial metrics. Continued strong Reverse Mortgage growth lifted profitability and contributed to NIM expansion and CTI ratio improvement. FY2026 summary FY2026 underlying AU Banking Business gro
Slide 31: Financial results
Financial results Reported Underlying FY26 FY25 Movement FY26 FY25 Movement NII $112.5m $86.5m $26.1m 30.1% $114.5m $86.5m $28.1m 32.4% OOI1 $6.3m $2.7m $3.7m 137.5% $0.6m $2.7m ($2.0m) (76.5%) NOI $118.9m $89.1m $29.7m 33.3% $115.2m $89.1m $26.0m 29.2% OPEX $54.8m $47.7m $7.1m 14.9% $
Slide 32: Receivables
Receivables Continued strength in Reverse Mortgage growth underpinned Heartland Bank Australia’s 16.4% lift in Receivables. A$373m (16.4%) (4) (14) 2,638 391 (1.7%) (44.4%) 2,265 19.7% Jun-25 Reverse Livestock Other AU 1 Jun-26 Mortgages AU Finance AU Receivables (AUD $m) 2,265 2,371 250 17 2,638 32
Slide 33: Reverse Mortgage commission accounting methodology update
Reverse Mortgage commission accounting methodology update Heartland Bank Australia has refined the accounting methodology used for Reverse Mortgage commissions.1 • Heartland Bank Australia’s accredited Reverse Accounting Mortgage brokers and intermediaries are Underlying Reported Comments change rem
Slide 34: Underlying NIM
Underlying NIM1 FY2025 NIM FY2026 NIM Avg. 3.08% Avg. 3.81% FY2026 summary 4.01% 3.97% 3.95% • NIM reflected the full year benefit of the 3.74% 4.00% > 3.68% deposit funding strategy, with legacy 3.59% 3.62% 3.88% wholesale funding arrangements replaced by lower-cost deposits. 3.50% 3.47% • The one-
Slide 35: Underlying OPEX
Underlying OPEX $11.2m (24.1%) FY2026 summary (0.7) 1.0 57.6 2.8 0.7 • Underlying OPEX was up A$11.2m on FY2025 2.4 primarily due to increased staff costs driven by 5.0 the full-year impact of FTE hired in FY2025, and additional FTE in FY2026 to support Reverse 46.4 Mortgage volume growth, the trans
Slide 36: Funding & liquidity
Funding & liquidity • Deposits increased to A$2.45b, representing 84% of total funding (June 30-Jun-25 30-Jun-26 2025: 81%), further strengthening the funding mix and reducing reliance 1 1 MLH MLH on wholesale funding. • Heartland Bank Australia completed the early repayment of its final Heartland B
Slide 37: Regulatory capital
Regulatory capital Heartland Bank Australia - Capital movement A$m Heartland Bank Australia maintains a strong capital 43 (8) 50 position while supporting 50 portfolio growth. 310 275 • Total capital increased to A$360m, driven by retained earnings of A$43m. Jun-25 Retained Reserves and Jun-26 • The
Slide 38: AU lending performance: Reverse Mortgages
AU lending performance: Reverse Mortgages Outlook A$2,371m Receivables as at 30 Jun 2026 +A$391m, 19.7% since 30 Jun 2025 • FY2027 growth:>20.0% Receivables growth A$79.8m NOI as at 30 Jun 2026 A$63.8m 30 Jun 2025 26.4% 28.8% 27.7% 24.6% 22.1% 19.6% 18.9% 20.4% 17.3% 17.9% • Reverse Mortgages contin
Slide 39: AU lending performance: Livestock Finance
AU lending performance: Livestock Finance A$250m Outlook Receivables as at 30 Jun 2026 • FY2027 growth: >10.0% -A$4.3m, -1.7% since 30 Jun 2025 A$15.1m NOI as at 30 Jun 2026 A$12.6m at 30 Jun 2025 Receivables (A$m) 272.9 274.2 271.8 • Livestock Finance saw good customer trading activity through FY20
Slide 40: AU transformation programme
AU transformation programme Heartland Bank Australia has partnered with Constantinople to consolidate multiple platforms into a single core banking system, simplifying operations and enabling scalable growth. • The programme will simplify Heartland Bank Australia’s technology infrastructure, reducin
Slide 41: AU transformation programme: Progress report
AU transformation programme: Progress report FY2026 progress FY2027 focus • On track. Deliverables and objectives Overall status • No change to delivery timetable. Programme delivery • Completed initial production deployment of the Constantinople platform. Milestones achieved • Transition existing R
Slide 42: Outlook
04 Outlook Andrew Dixson Chief Executive Officer, Heartland Group
Slide 43: FY2027 strategic focus
FY2027 strategic focus Continue to improve shareholder return by growing ROE to at least 7.5% and lifting profitability to at least $102m. Through FY2026, Heartland reset its core strategic foundation. This included restoring NIM and asset quality to target levels as Heartland Bank’s enhanced collec
Slide 44: FY2027 guidance
FY2027 guidance Heartland expects FY2027 NPAT to be at least $102m, excluding any costs related to the Proposed Transaction. It is expected that transaction costs relating to the Proposed Transaction of approximately $9.5m will be expensed and reflected in Heartland’s NPAT for FY2027 (subject to the
Slide 45: Appendix Additional information
Appendix Additional information
Slide 46: Motor Finance arrears vs. auto industry average
Motor Finance arrears vs. auto industry average 6.5% 6.3% 6.0% 5.9% 6.1% 5.8% 5.6% 5.8% 5.5% 5.4% 5.4% 5.2% 5.2% 5.1% 5.0% 5.0% 4.6% 4.5% 4.5% 4.3% 4.0% 4.0% 4.2% 3.5% 3.7% 3.0% 3.0% 2.8% 2.5% 31/12/2024 31/03/2025 30/06/2025 30/09/2025 31/12/2025 31/03/2026 30/06/2026 Market Arrears (Centrix Market
Slide 47: NZ Reverse Mortgage portfolio analytics
NZ Reverse Mortgage portfolio analytics $1.44b $285m (+$74.4 vs FY2025) 73 17.1% NZ Reverse Mortgages Average age of youngest borrower Compound annual +$207m (+16.8%) vs June 2025 FY2026 origination2 (new customers)3 growth rate4 $162,963 $88,173 9.1% 27.5% Average current Average initial Weighted a
Slide 48: AU Reverse Mortgage portfolio analytics
AU Reverse Mortgage portfolio analytics A$2.37b A$548.2m (+A$144.5m vs FY2025) 72 18.2% AU Reverse Mortgages Average age of youngest borrower Compound annual Total originations in FY2026 +A$390.9m (+19.7%) vs June 2025 (new customers)3 growth rate1 A$222,843 A$161,557 14.0% 24.8% Average current Ave
Slide 49: Glossary
Glossary ADI Authorised deposit-taking institution NPL Non-performing loan APRA Australian Prudential Regulation Authority NSA Non-strategic assets The Banking Group includes all of the NZ bank’s subsidiaries, including The New Zealand Banking Group consists of the NZ Bank and its NZ subsidiaries, B
Slide 50: Thank you
Thank you Investor & media relations Nicola Foley Head of Corporate Communications & Investor Relations +64 27 345 6809 nicola.foley@heartland.co.nz Investor information For more information heartlandgroup.info/investor-information
Heartland Group Holdings — FY2026 Earnings Presentation on 6ix