Heartland Group Holdings Ltd. · NZX:HGH
Heartland — H1 2026 Earnings Presentation
44 slides from Heartland's earnings presentation, February 2026
Slide 1: Investor Presentation: 1H2026 Interim Results
Investor Presentation 1H2026 Interim Results For the 6 months ended 31 December 2025
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 measures do not have standardised meanings prescribed under NZ GAA
Slide 3: Contents
Contents 01 Executive summary & outlook 4-12 02 New Zealand banking 13-26 03 Australian banking 27-37 04 Q&A 38 05 Appendices & glossary 39-43 3 3
Slide 4: Executive summary & outlook
01 Executive summary & outlook Andrew Dixson Chief Executive Officer, Heartland Group
Slide 5: Executive summary
Executive summary Heartland delivered a strong turnaround in profitability and steady progress towards its FY2026 guidance, supported by NIM expansion, improved asset quality metrics, strong Reverse Mortgage growth in both countries, cost control and accelerated NSA realisation. Overview • Underlyin
Slide 6: Group financial results
Group financial results 8m NZ, Reported Underlying Reported v Underlying 1H26 1H25 Movement 1H26 1H25 Movement 1H26 1H25 NII $165.9m $149.1m $16.8m 11.3% $165.9m $149.1m $16.8m 11.3% - - OOI1 $9.4m $6.0m $3.4m 57.0% $6.4m $7.7m ($1.4m) (17.8%) $3.1m ($1.7m) NOI $175.3m $155.1m $20.2m 13.0%
Slide 7: Reported vs. underlying results
Reported vs. underlying results The difference between reported and underlying results in 1H2026 was $2.7m. 1H2026 1H2025 Reported NPAT $48.8m $3.6m ‒ De-designation of derivatives - $1.1m ‒ Fair value changes on equity investments held ($3.1m) $0.2m ‒ Other non-recurring income - $0.4m Other operat
Slide 8: Technology investment
Technology investment Heartland is investing in multi-year technology programmes to support scalable growth for its core product sets in New Zealand and Australia. These investments will modernise and simplify technology for both banks by implementing AI-enabled, cloud-based platforms. • Heartland B
Slide 9: Capital
Capital Heartland remains well placed to cater for organic growth with excess capital held across the group, enhanced through NSA realisation and recent RBNZ decisions on capital settings. • On 17 December 2025, the RBNZ announced final decisions on key capital settings for deposit takers. Benefits
Slide 10: NSA realisation progress
NSA realisation progress NSA realisation continues to progress ahead of expectations and is tracking to be largely concluded by 30 June 2026. • In 1H2026, the total value of NSAs reduced by $189.8m, creating $21.2m of available capital. In the period, Heartland: • accelerated exits from Rural borrow
Slide 11: Shareholder return
Shareholder return 7.3% Underlying ROE5 Underlying ROE 11.9% 1H2026 7.3% vs 2H2025 6.0% 9.8% 10.9% 9.8% 4.2% 3.5 cps 12.1% 10.2% 6.0% Interim dividend 1.9% 7.3% up 1.5 cps vs 1H2025 FY23 FY24 FY25 FY26 1H 2H 6.1%1 Dividend yield (1H2025: 7.9%2) 16.0 Underlying EPS (cps)6 13.5 7.8 6.1 • Heartland has
Slide 12: Looking forward
Looking forward Heartland affirms its FY2026 guidance to deliver an underlying ROE of at least 7% and underlying NPAT of at least $85 million. FY2026 guidance Underlying financial metrics Heartland NZ Banking AU Banking NPAT ≥$85m >$45m >AU$37m (NZ$40m) ROE ≥7% >6% >8% Average NIM >3.90% (n.c.) >4.1
Slide 13: New Zealand banking
02 New Zealand banking Leanne Lazarus Chief Executive Officer, Heartland Bank Kerry Conway Chief Financial Officer, Heartland Bank
Slide 14: NZ banking: 1H2026 summary
NZ banking: 1H2026 summary Heartland Bank’s vision is to be New Zealand’s leading specialist bank. Positive momentum is building following a strategy reset in FY2025. 1H2026 summary 2H2026 focus • Conversion of strong pipelines developed in 1H2026 in Growth Quality Efficiency core portfolio sets to
Slide 15: Financial results
Financial results Reported Underlying 1H26 1H25 Movement 1H26 1H25 Movement NII $105.4m $105.6m ($0.2m) (0.2%) $105.4m $105.6m ($0.2m) (0.2%) OOI1 $11.6m $9.4m $2.3m 24.3% $8.6m $11.1m ($2.5m) (22.7%) NOI $117.0m $115.0m $2.1m 1.8% $114.0m $116.7m ($2.7m) (2.3%) OPEX $63.0m $63.1m ($0.
Slide 16: Receivables
Receivables Reverse Mortgages continued to grow, with strong Rural pipelines through direct channels and intermediary partnerships, while Motor Finance and Business Finance contracted due to strategic portfolio repositioning and market conditions. $254m (-10.7%)1 Core business NSAs $67m (-3.1%)1 $17
Slide 17: Underlying NIM
Underlying NIM 1H2026 NIM 1H2025 NIM Avg. 4.05% Avg. 3.78% 4.18% > 4.20% 1H2026 summary 4.08% 4.11% • NIM remains strong, with steady expansion 3.93% 4.13% 4.12% 3.82% 3.89% 4.06% > 4.10% (up 28 bps from 1H2025). 3.92% • This was supported by a low cost of funds, 3.82% 3.79% despite lower gross yiel
Slide 18: Underlying OPEX
Underlying OPEX $0.5m (0.8%) 1H2026 summary $1.1m (-1.7%) Total underlying OPEX of $62.6m. 0.3 0.4 (1.8) • Elevated staff expenses are primarily due to 2.2 (2.1) restructuring costs ($1.5m) as well as the re- 1.6 63.7 62.6 introduction of a LTI scheme ($0.6m). 62.1 • The underlying CTI ratio increas
Slide 19: Impairment and provisioning
Impairment and provisioning Impairment expense ($m) Impairment expense ratio 39.8 3.32% 20.2 8.3 FY2025 1H2026 9.8 10.8 7.1 4.4 15.9 14.1 1.40% 0.50% 4.4 4.7 4.6 7.9 4.0 6.1 4.7 3.5 7.9 2.2 1.1 2.0 (2.8) 0.92% (0.2) (4.2) (4.6) (4.2) 0.77% 0.70% 0.70% (0.1) 0.61% (5.2) (1.0) (0.7) 0.39% 1Q2025 2Q202
Slide 20: Asset quality
Asset quality NPL ratios1 Asset quality – Motor Finance3 3.7%, $65.0 3.40% 3.31% 1.1%, 3.21% 3.22% $20.3 2.7%, $46.3 3.04% 1.2%, 2.2%, $37.9 1.1%, 1.9%, $32.3 $20.2 0.8%, 1.7%, $28.0 $19.9 0.6%, 0.0%, $0.4 $13.2 0.5%, $9.8 $8.9 2.46% 1.4%, 1.5%, 1 1.5%, 1.3%, 2.40% 29.4%, 1.2%, 2.34% 2.36% $24.8 $25
Slide 21: Capital
Capital New Zealand Banking Group1 – Total Capital movement $m Heartland Bank is well positioned for future 40 31 (28) 20 17 growth, with capital well above regulatory 7 86 42 22 minimums. • The RBNZ’s final decisions on key capital settings for deposit takers include the 645 630 following key featu
Slide 22: NZ lending performance: Reverse Mortgages
NZ lending performance: Reverse Mortgages Outlook $1,328m Receivables as at 31 Dec 2025 +$95m, 15.2% since 30 Jun 2025 1 • FY2026 growth: >18% (n.c.) New marketing campaign $32.0m NOI as at 31 Dec 2025 +9.9% vs 1H2025 • New business volumes increased by more than 23% compared with 1H2025, with an in
Slide 23: NZ lending performance: Rural
NZ lending performance: Rural1 Outlook $578m Receivables as at 31 Dec 2025 -$30m, -9.9%2 since 30 Jun 2025 • FY2026 growth: >9% (+3%) Includes $390m Rural Lending3 and $189m Livestock Finance Rural Receivables ($m) 235.2 $14.7m 386.1 209.0 210.7 NOI as at 31 Dec 2025 380.4 379.6 +11.3% vs 1H2025 199
Slide 24: NZ lending performance: Motor Finance
NZ lending performance: Motor Finance1 Outlook $1,653m Receivables as at 31 Dec 2025 -$41m, -4.8%2 since 30 Jun 2025 • FY2026 growth: Flat (-3%) Includes $1,524m Motor Lending3 and $130m Wholesale Lending Dealer channel mix over time $37.9m 53% 54% NOI as at 31 Dec 2025 +2.5% vs 1H2025 40% 40% 33% I
Slide 25: NZ lending performance: Business Finance
NZ lending performance: Business Finance1 Outlook $690m Receivables as at 31 Dec 2025 -$90m, -22.8%2 since 30 Jun 2025 • FY2026 growth: <-19% (-10%) Includes $139m Business Lending and $551m Asset Finance Asset Finance application volumes and average CCR at approval $19.0m NOI as at 31 Dec 2025 Aver
Slide 26: NZ technology programme
NZ technology programme Heartland Bank has partnered with Pega to deliver a technology platform which will leverage and fully integrate Benefits • Fully digital, end-to-end customer with its modern core banking system. journeys with seamless and improved experience for customers, intermediaries • Th
Slide 27: Australian banking
03 Australian banking Michelle Winzer Chief Executive Officer, Heartland Bank Australia Kerry Conway Chief Financial Officer, Heartland Bank
Slide 28: AU banking: 1H2026 summary
AU banking: 1H2026 summary Heartland Bank Australia’s vision is to be Australia’s leading specialist bank, enriching customers’ lives through financial freedom. 1H2026 summary 2H2026 focus Business growth: Service excellence: Diversify distribution: • Technology programme: • Receivables growth: • Sp
Slide 29: Financial results
Financial results Reported Underlying 1H26 1H25 Movement 1H26 1H25 Movement NII $53.7m $39.4m $14.3m 36.2% $53.7m $39.4m $14.3m 36.2% OOI1 ($0.8m) $1.6m ($2.4m) (146.6%) ($0.8m) $1.6m ($2.4m) (146.6%) NOI $53.0m $41.1m $11.9m 28.9% $53.0m $41.1m $11.9m 28.9% OPEX $28.0m $24.2m $3.8m 15
Slide 30: Receivables
Receivables Reverse Mortgage and Livestock Finance growth underpinned by broader broker distribution and improving customer metrics. A$198m (17.4%)1 19 (9) 2,464 188 14.9% (56.9%) 2,265 18.9% Jun-25 Reverse Livestock Other AU 2 Dec-25 Mortgages AU Finance AU Receivables (AUD $m) 2,265 2,169 273 22 2
Slide 31: Underlying NIM
Underlying NIM 1H2026 NIM 1H2025 NIM Avg. 3.68% Avg. 2.75% 3.96% >3.75% 1H2026 summary 3.59% 3.62% • NIM expansion was primarily driven by a lower 3.27% 3.74% > 3.70% 3.13% proportion of average wholesale funding in 3.47% 3.50% 3.31% 1H2026, reducing from 52% in 1H2025 to 15% 2.67% 3.01% in 1H2026.
Slide 32: Underlying OPEX
Underlying OPEX $4.8m (20.8%) 1H2026 summary 0.4 • Costs increased in 1H2026 due to volume 28.0 0.2 (0.5) 1.7 related expenses and the commencement of 0.8 the technology programme, as indicated in 2.1 recent announcements. 23.2 • The 2Q2026 underlying CTI ratio of 52.2% includes the impact of the ea
Slide 33: Funding & liquidity
Funding & liquidity • Heartland Bank Australia used deposit funding to complete the early 30-Jun-25 31-Dec-25 repayment of its final A$100m MTN. 1 1 MLH MLH • The deposits funding mix strengthened to 86% as at 31 December 2025, up from 81% as at 30 June 2025 and 54% as at 30 June 2024. Heartland Ban
Slide 34: Capital
Capital Heartland Bank Australia - Capital movement A$m Heartland Bank Australia 1 continues to operate above 15 50 regulatory capital minimums, 50 Tier Two with growth supported by 275 291 CET1 organic capital generation. • Total capital ratio remained robust at 19.5%, Jun-25 Retained Regulatory De
Slide 35: AU lending performance: Reverse Mortgages
AU lending performance: Reverse Mortgages Outlook A$2,169m Receivables as at 31 Dec 2025 +A$188m, 18.9% since 30 Jun 2025 1 • FY2026 growth:>19.0% (n.c.) Marketing activity is supporting A$44.7m NOI as at 31 Dec 2025 A$30.8m 1H2025 growth • To further market reach and broaden its broker network, Hea
Slide 36: AU lending performance: Livestock Finance
AU lending performance: Livestock Finance A$273m Outlook Receivables as at 31 Dec 2025 • FY2026 growth: >20.0% (n.c.) +A$19.1m, 14.9%1 since 30 Jun 2025 A$8.2m NOI as at 31 Dec 2025 A$5.2m 1H2025 Receivables (A$m) 285.0 281.9 272.9 • The inaugural StockCo by Heartland Bank Australia customer survey
Slide 37: AU technology programme
AU technology programme Heartland Bank Australia has partnered with Constantinople to consolidate three product origination and servicing Benefits platforms into a single, cohesive solution. • Improved customer and employee experience, including faster decisioning, streamlined processes and greater
Slide 38: Q&A
HEARTLAND GROUP Q&A
Slide 39: Appendices & glossary
05 Appendices & glossary
Slide 40: Motor Finance arrears vs. auto industry average
Motor Finance arrears vs. auto industry average 6.5% 6.3% 6.0% 6.1% 5.9% 5.8% 5.8% 5.5% 5.4% 5.4% 5.2% 5.1% 5.0% 5.0% 4.6% 4.5% 4.5% 4.3% 4.2% 4.0% 31/12/2024 31/03/2025 30/06/2025 30/09/2025 31/12/2025 Market Arrears (Centrix Market Report) Total Motor (HBL) Consumer Motor (HBL) 40 Note: • For the
Slide 41: NZ Reverse Mortgage portfolio analytics
NZ Reverse Mortgage portfolio analytics $1.33b $131m (+$25.1m vs 1H2025) 73 17.0% NZ Reverse Mortgages Average age of youngest borrower Compound annual +$95m (15.2%)1 vs June 2025 1H2026 origination2 (new customers)3 growth rate4 $159,168 $82,000 8.5% 27.1% Average current Average initial Weighted a
Slide 42: AU Reverse Mortgage portfolio analytics
AU Reverse Mortgage portfolio analytics A$2.17b A$260m (+A$178m vs 1H2025) 72 18.4% AU Reverse Mortgages Average age of youngest borrower Compound annual +A$188m (+18.9%)1 vs June 2025 1H2026 origination2 (new customers)3 growth rate4 A$214,710 A$159,367 14.0% 25.0% Average current Average initial W
Slide 43: Glossary
Glossary ADI Authorised deposit-taking institution NSA Non-strategic assets The New Zealand Banking Group consists of the NZ Bank and its NZ subsidiaries, APRA Australian Prudential Regulation Authority NZ Banking Group, NZBG excluding Marac Insurance Limited. The Banking Group includes all of the N
Slide 44: 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
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