Heartland Group (HGH) Q1 2027 TU earnings summary

Executive summary

• 1Q2027 NPAT and ROE improved QoQ; Reverse Mortgage growth, stable operating expenses and improving asset quality supported performance.

• On track for FY2027 reported NPAT of at least $102m and ROE of at least 7.5%.

Financial highlights

• 1Q2027 NOI was $93.4m, OPEX $51.1m and impairment expense $6.7m; reported NPAT was $24.5m versus $23.0m in 4Q2026 and $26.7m in 1Q2026.

• NPAT was $25.5m excluding Proposed Transaction costs; costs were $0.9m in 1Q2027, with $9.5m expected in FY2027 if the transaction completes.

• Average NIM was 3.92%; CTI was 54.7% excluding transaction costs and 55.7% reported.

• Impairment expense ratio was 0.34%; ROE was 7.6% excluding transaction costs and 7.3% reported.

• Receivables reached $7,876m, with 1.7% annualised growth excluding FX changes; FX movements contributed $0.1m to 1Q2027 NPAT.

Outlook and guidance

• FY2027 targets: reported NPAT ≥$102m, ROE ≥7.5%, NIM >3.88% and CTI <55.7%; guidance excludes transaction costs where applicable.

• NZ Banking targets: NPAT >$48m, NIM >4.05%, OPEX <$135m, CTI <58.4%, impairment ratio <0.48% and ROE >6.3%.

• AU Banking targets: NPAT >AU$46m, NIM >3.68%, OPEX <AU$65m, CTI <47.2%, impairment ratio <0.10% and ROE >9.3%.

• Guidance will be updated upon completion of the Proposed Transaction; completion is targeted no earlier than December 2026 and remains subject to outstanding conditions.