Heartland Group (HGH) Investor presentation summary

Financial performance and outlook

• On track to achieve underlying NPAT for FY2025 of at least $45m, with NIM expanding 28 bps versus 1H2025 and stable OPEX in Q3.

• Receivables grew to $7,224m, driven by strong growth in Reverse Mortgages and Livestock Finance in both New Zealand and Australia.

• Underlying cost-to-income ratio improved to 56.8% in Q3, with ongoing cost management programs.

• Asset quality improvements are evident, especially in the Motor Finance portfolio, with early recovery efforts exceeding expectations.

• Good progress made on non-strategic asset realisation, with exit strategies being accelerated.

New Zealand banking segment

• NPAT for 3Q2025 reached $10.2m reported and $10.6m underlying, with NIM above 3.9%.

• Receivables at $4,794m as of 31 March 2025, with core lending portfolios prioritized.

• Motor Finance asset quality improved, with 49% of expected recoveries achieved and arrears profile strengthening.

• Non-performing loan (NPL) ratios declined across most portfolios, with Motor Finance NPL at 2.7% and Rural at 3.4%.

• Retraction in non-core lending due to strategic focus and early repayment of wholesale funding.

Australia banking segment

• NPAT for 3Q2025 was AU$7.9m, with NIM rebounding to 3.13% and outlook above 3.3%.

• Receivables grew 15.9% year-on-year to AU$2,209m, led by Reverse Mortgages and Livestock Finance.

• NPL and impairment expense ratios remain low, with NPL at 0.15% and impairment expense at 0.05% in Q3.

• Underlying cost-to-income ratio improved to 49.2% in Q3, with further improvement expected.