Heartland Group Holdings' Net Interest Margin Expands in September Quarter

MT Newswires Live
Oct 23, 2025

Heartland Group Holdings (NZE:HGH, ASX:HGH) said that the group's net interest margin continued to expand and cost growth has remained stable, according to a Thursday filing with the Australian and New Zealand bourses.

The group's underlying net profit after tax for the quarter ended Sept. 30 came in at NZ$23.6 million, up from NZ$18.4 million it reported in the previous quarter.

Heartland Bank's September quarter net interest margin of 4.06% and exit net interest margin of 4.08% were down 12 basis points and 5 basis points, respectively, quarter over quarter. Meanwhile, Heartland Bank Australia's net interest margin expanded 15 basis points in the quarter to 3.62%.

Heartland Bank's business finance non-performing loans increased during the first quarter of fiscal 2026, noting that New Zealand business conditions remain challenging. Heartland Bank expects nonperforming loan improvement in the second quarter of fiscal 2026. Livestock finance seasonal impacts also affected Heartland Bank Australia's non-performing loan ratio, which is expected to improve in the December quarter.

The group's shares rose over 1% in recent trading on the Australian bourse and over 2% on the New Zealand bourse on Thursday.

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