Heartland Group Holdings Ltd. · NZX:HGH
Heartland — 3Q2025 Earnings Presentation
10 slides from Heartland's earnings presentation, Mar 31, 2025
Slide 1: 3Q2025 Market Update
3Q2025 MARKET UPDATE For the quarter ended 31 March 2025 INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Heartland Group Holdings Limited impacts of one-offs, both positive and negative, which can make it difficult to compare (NZX/ASX: HGH) (the Company or Heartland) for the purpose of briefings in performance between periods. relation to this market up
Slide 3: 3Q2025 Summary
3Q2025 SUMMARY Heartland is on track to achieve an underlying NPAT for FY2025 of at least $45m. • NIM expanded 28 bps versus 1H2025 with improvement seen in both banks. • Heartland is focused on sustainable, profitable growth, and has seen compelling Receivables growth in Reverse Mortgages and Lives
Slide 4: NZ Banking
NZ BANKING Reported Underlying NPAT 1H2025 3Q2025 YTD 1H2025 3Q2025 YTD $0.9m $10.2m $11.1m $3.1m $10.6m $13.8m NIM Impairment expense ratio 3.32% 3.93% >4.00% 3.84% 3.89% 3.82% >3.90% 3.72% 3.92% 3.77% 3.79% 3.68% 1.08% 0.92% 0.77% 0.85% 0.68% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 2H2025 (Outlook) 3Q2
Slide 5: NZ Banking: Asset Quality
NZ BANKING: ASSET QUALITY NPL ratios Heartland Bank portfolio composition 3.60% 3.65% Reverse & 3.40% Residential 3.31% Mortgages, 29.7% 2.88% 2.81% Rural, 13.9% Motor and Personal Loans 32.6% NPLs, 3.3% Dec-2022 Jun-2023 Dec-2023 Jun-2024 Dec-2024 Mar-2025 Business 20.5% December 2024 March 2025 No
Slide 6: NZ Banking: Asset Quality
NZ BANKING: ASSET QUALITY Motor Finance With more prescriptive collections and recoveries practices now in place in NZ, early recovery efforts have exceeded expectations and Heartland Bank’s Motor Finance arrears profile is improving. Motor Finance (>365 DPD write-offs) recoveries • As at 31 March 2
Slide 7: AU Banking
AU BANKING Reported Underlying NPAT 1H2025 3Q2025 YTD 1H2025 3Q2025 YTD AU$11.3m AU$7.9m AU$19.2m AU$12.0m AU$7.9m AU$19.9m NIM1 NPL and Impairment expense ratio >3.60% 4.41% 4.37% 3.27% 3.13% 2.84% >3.30% 2.69% 2.67% 3.31% 2.62% 2.62% 3.01% 2.57% 2.58% 2.45% 0.11% 0.15% 0.05% 0.02% 3Q2024 4Q2024 1Q
Slide 8: Non-Strategic Asset (NSA) Realisation Progress
NON-STRATEGIC ASSET (NSA) REALISATION PROGRESS Good progress has been made against Q3 NSA realisation targets. Exit strategies have been refined, set and are now being accelerated. • The shortfall in actual to target realisation for Online Home Loans was a result of adopting retention strategies whi
Slide 9: 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
Slide 10: Glossary
GLOSSARY ADI Authorised deposit-taking institution O4B Open for Business bps Basis points OPEX Operating expenses CET1 Common Equity Tier 1 Receivables Gross Finance Receivables (includes Reverse Mortgages) CTI ratio Cost-to-income ratio ROE Return on Equity DPD Days past due YTD Year to date Financ
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