Heartland Group Holdings (ASX:HGH) continues to experience volatility in the four months ended Oct. 31 amid tough trading conditions for its business customers, according to a Tuesday filing with the Australian and New Zealand bourses.

Reverse mortgages during the period saw an annualized growth of nearly 17%, while motor finance and asset finance portfolios receded 2.5% and 9.9% on an annualized basis, respectively.

The financial services firm's New Zealand banking unit is expected to record a net interest margin of 4% in the fiscal year ending June 30, 2025.

The Australian financial banking unit is expected to transition to retail deposit funding from wholesale by the end of the fiscal year. It was 57% funded by retail deposits as of the end of October. Reverse mortgages rose almost 15% on an annualized basis in the first four fiscal months with livestock finance falling 8.1% during the same period.

Hartland will provide after-tax net profit guidance as part of its interim report slated for release in February 2025.

The company's Australian and Kiwi shares were each down 1% in recent Tuesday trade.

Price (AUD): $0.89, Change: $-0.010, Percent Change: -1.11%