Wednesday 28th January 2015 |
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Heartland New Zealand, the bank formed from the merger of Marac Finance with Southern Cross and Canterbury building societies, raised its 2015 profit forecast on better than expected asset growth.
The Christchurch based lender expects profit of $46 million to $48 million in the year ending June 30, up from a previous estimate of $42 million to $45 million, and ahead of the $36 million last year, it said in a statement. Profit in the first half ended Dec. 31, 2014, will be $23 million to $24 million, it said.
Heartland is targeting expansion through niche lending markets. Last year it bought a reverse mortgage business from Seniors Money International for $87 million and took a 10 percent stake in peer to peer lender Harmoney Corp as it seeks to accelerate growth. The latest profit estimates don't include any upgrade in value for Heartland’s shareholding in Harmoney, which it is currently considering following Harmoney’s $10 million capital raise in which online auction site Trade Me Group acquired a 15 percent shareholding.
"Heartland is pleased with its strong first half performance which has been primarily driven by asset growth," the company said. "Underlying asset growth is expected to continue for the second half of the financial year, with strong business, rural and consumer volumes projected while also maintaining expected margins."
Heartland expects to release its first half earnings in late February.
The lender's shares last traded at $1.19 and have gained 37 percent the past year.
BusinessDesk.co.nz
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