7 Aug 2014

Heartland profit up sharply

1:39 pm on 7 August 2014

Heartland New Zealand expects to report an annual profit of about $36 million more than five times last year's near $7 million bottom line it says.

That is also towards the top end of the company's guidance range of $34 million to $37 million for the year ended June.

Heartland said the improvement partly reflected property write-downs, which dragged down the year-earlier result, but it also shows continuing income growth and cost containment.

Its recently purchased Australasian home equity release mortgage business, Seniors Money, contributed about $1 million to net profit, as expected.

Chief financial officer, Simon Owen, said the underlying result is also strong and the company is suggesting this year's earnings will be higher.