Heartland trading update

Note: All figures in NZD unless otherwise stated.
Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info
NZX/ASX release
16 April 2025

Heartland trading update

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) today provides a trading update for
the three months to 31 March 2025 (Q3).

Heartland remains on track to achieve net profit after tax (NPAT) on an underlying basis for the
financial year ending 30 June 2025 (FY2025) of at least $45 million.
1
Net interest margin (NIM)
expanded 28 basis points in Q3 (relative to the six-month period ended 31 December 2024
(1H2025)), with improvement seen in both Heartland Bank Limited (Heartland Bank) and Heartland
Bank Australia Limited (Heartland Bank Australia). Operating expenses (OPEX) in Q3 remained
stable – both banks are on track to meet OPEX expectations for the six-month period ending 30 June
2025 (2H2025) (as detailed below). Cost management programmes are in place to improve
operational efficiency moving forward.

Asset quality improvements are starting to show in Heartland Bank’s Motor Finance portfolio
following the introduction of more prescriptive collections and recoveries policies for the New
Zealand bank as announced on 18 February 2025. As a result, early recovery efforts for the Motor
Finance loans written off in February 2025 have exceeded expectations.

Heartland is focused on sustainable, profitable growth, and has seen compelling gross finance
receivables (Receivables) growth in Reverse Mortgages and Livestock Finance in New Zealand and
Australia.

Heartland NZ Banking AU Banking
Reported Underlying Reported Underlying Reported Underlying
Q3 Q3 Outlook Q3 Q3 Outlook Q3 Q3 Outlook
NPAT
Q3:
$16.6m
Q3:
$17.1m
FY25:
≥$45m
Q3:
$10.2m
Q3:
$10.6m
n/a
Q3:
AU$7.9m
Q3:
AU$7.9m
n/a
YTD:
$11.1m
YTD:
$13.8m
YTD:
AU$19.2m
YTD:
AU$19.9m
NIM 3.69% 3.69% n/a 3.92% 3.92%
2H25:
>3.90%
3.31% 3.31%
2H25:
>3.30%
OPEX $46.9m $46.3m n/a $33.2m $32.5m
2H25:
$66.1m
AU$11.2m AU$11.2m
2H25:
AU$23.3m
CTI ratio 57.6% 56.8% n/a 57.1% 56.0%
2H25:
57.5%
49.2% 49.2%
2H25:
47.8%
Impairment
expense
ratio
0.63% 0.63% n/a 0.92% 0.92%
2H25:
0.85%
0.05% 0.05% n/a

1
Certain financial measures are presented on a reported and underlying basis. Reported financial measures
are prepared in accordance with NZ GAAP and include the impacts of positive and negative one-offs, which can
make it difficult to compare performance between periods. Underlying financial measures (which are non-
GAAP financial information) exclude the impact of one-off regulatory assurance costs arising in relation to the
acquisition of Heartland Bank Australia (previously Challenger Bank Limited), one-off staff exit costs, the de-
designation of derivatives, the fair value changes on equity investments held, and other non-recurring income.
The use of underlying results is intended to allow for easier comparability between periods and is used
internally by management for this purpose. The Investor Presentation for Heartland’s 1H2025 financial results
released on 27 February 2025 includes at page 7 details of the 1H2025 one-offs and at page 45 general
information about Heartland’s use of non-GAAP financial measures.

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info 2
NZ banking
Financial performance
Q3 NIM was 3.92%, up from 3.78% in 1H2025 and on track to meet 2H2025 NIM expectations of
greater than 3.90% with an exit NIM
2
greater than 4.00%. NIM improvement in Q3 was driven by an
improved cost of funds as term deposit pricing benefits flowed through.

OPEX in Q3 was $32.5 million and is on track to meet the 2H2025 outlook expectation of $66.1
million. A strategic cost management programme is in place to manage costs in 2H2025 and ensure a
proactive long-term approach to resetting Heartland Bank’s cost base.

As expected, the impairment expense ratio has reduced from its elevated 1H2025 position following
the impairment expense announced on 18 February 2025. Heartland Bank’s overall non-performing
loan (NPL) ratio reduced by 9 basis points from 31 December 2024 to 3.31% as at 31 March 2025.
28% of Heartland Bank’s NPLs are non-strategic asset (NSA) loans.

Strong growth has continued in Reverse Mortgages, with Receivables up $41.7 million (14.7%)
3
in Q3
to $1,192.3 million as at 31 March 2025. At the end of March, Heartland Bank launched the pilot of
its new product, Village Access Loans – designed to offer older New Zealanders a solution to some of
the barriers associated with moving into a retirement village.

Rural
4
Receivables were up $21.0 million (12.7%)
3
in Q3 to $688.9 million as at 31 March 2025.
Included within this is Livestock Finance which was up $23.4 million (57.1%)
3
in Q3 to $189.9 million
as at 31 March 2025, ahead of expectations and reflects increased livestock market prices and
Heartland Bank’s commitment to supporting more farmers with their specialist livestock trading
needs. Livestock Finance growth is expected to increase further in the fourth quarter of FY2025 (Q4)
due to the usual seasonal lift.

The retraction in Motor Finance Receivables slowed significantly in Q3, down $6.1 million (-1.6%)
3
to
$1,592.3 million as at 31 March 2025, while the portfolio mix shifted towards increased loan
volumes from branded franchise dealers. Growth in Heartland Bank’s direct channels continued to
perform well, up $2.0 million (10.1%)
3
in Q3.

Trading conditions within the forestry, transport, agriculture contractor and construction sectors
remain challenging, affecting lending demand for Heartland Bank’s Asset Finance portfolio.

Collections and recoveries progress
Heartland Bank’s more prescriptive repossession policy, write-off policy and debt collection
strategies (described in Heartland’s announcement on 18 February 2025) are having a positive effect
on Motor Finance arrears. More resources are now focused on earlier stage arrears which is
reducing the number of loans moving into arrears and through the arrears cycle.

Early recovery efforts for the Motor Finance portfolio write-offs announced on 18 February 2025
have exceeded expectations. As at 31 March 2025, Heartland Bank had recovered $1.9 million (49%)
of the $3.9 million of expected recoveries.


2
The 2H2025 exit NIM is the NIM expected to be achieved on 30 June 2025 (rather than the average NIM for
2H2025).
3
Annualised growth.
4
Rural lending includes Heartland Bank’s Livestock Finance, Rural Direct and Rural Relationship portfolios.

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info 3
As expected, due to the time required for vehicles to be repossessed and debt written off and
transferred to a debt collection agency, NPLs totalling $3.5 million have rolled through to being
greater than 365 days past due (DPD). Through repossession activity and business-as-usual write-
offs, these arrears are expected to be cleared before 30 June 2025.

Consistent with Heartland Bank’s expectations for Q3 (due to the traditional seasonal uplift, coupled
with ongoing challenging economic conditions), the amount of Open for Business (O4B) loans
greater than 90 DPD has remained relatively flat, up $0.3 million from 31 December 2024. Recovery
activity continues as Heartland Bank works towards its commitment to having no O4B arrears
greater than 365 DPD by 30 June 2026. As part of Heartland Bank’s simplification and strategic move
away from unsecured lending, O4B is no longer accepting new applications and is running down.

AU banking
Financial performance
Heartland Bank Australia’s transition from its sole reliance on wholesale funding to a mix of
predominantly deposits supported by wholesale funding continues to track to plan. As at 31 March
2025, deposits made up 70% of funding and are expected to be above 80% by the end of FY2025
with AU$370 million of wholesale funding expected to repay in Q4. This transition is supporting NIM
expansion which was 3.31% in Q3, up from 2.75% in 1H2025 and on track to meet 2H2025 NIM
expectations of greater than 3.30% with an exit NIM greater than 3.60%.

OPEX in Q3 was AU$11.2 million and is on track to meet the 2H2025 outlook expectation of AU$23.3
million. The underlying CTI ratio is improving (down from 56.4% in 1H2025 to 49.2% in Q3) as net
interest income benefits from the funding mix transition and Receivables growth, and costs remain
stable.

Reverse Mortgage growth remains strong, with Receivables up AU$87.1 million (19.7%)
3
in Q3 to
AU$1,884.1 million as at 31 March 2025.

Livestock Finance Receivables were up AU$36.3 million (59.3%)
3
in Q3 to AU$285.0 million as at 31
March 2025, driven by a number of large customer transactions. Some confidence has returned to
the market, alongside livestock market price improvements. Livestock Finance has a good pipeline of
growth for Q4 which will be supported by the launch of Heartland Bank Australia’s new partnership
with AuctionsPlus, Australia’s leading online agricultural marketplace.

Non-Strategic Assets (NSAs)
Good progress has been made against Q3 NSA realisation targets. Exit strategies have been refined,
set and are now being accelerated.

The shortfall in actual to target realisation for Online Home Loans was a result of adopting retention
strategies while several portfolio sale opportunities were finalised. Online Home Loans is now in run
down after Heartland Bank closed applications to new customers on 18 March 2025. Heartland
Bank’s 1-year fixed rate
5
and floating interest rate remain available to existing Online Home Loans
customers as they transition to alternative home loan providers when their current fixed rate terms
come to an end.

– ENDS –


5
Heartland Bank’s 1-year fixed interest rate for Online Home Loans will not be available after 30 June 2025.

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info 4
The person who authorised this announcement:
Andrew Dixson, Chief Executive Officer

For further information and media enquiries, please contact:
Nicola Foley, Head of Corporate Communications & Investor Relations
+64 27 345 6809, nicola.foley@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

About Heartland
Heartland is an Australasian financial services group providing specialist banking products to New
Zealanders and Australians. Heartland is listed on the New Zealand and Australian stock exchanges
under the HGH ticker (NZX/ASX: HGH). Through its various predecessors, Heartland has a long
history with roots stretching back to Ashburton, New Zealand in 1875.

Heartland is the listed holding company for two banks – Heartland Bank in New Zealand and
Heartland Bank Australia in Australia. Each bank is focused on providing specialist banking products
to enable better lives for New Zealanders and Australians. In both countries, these products include
Reverse Mortgages, Livestock Finance and Savings and Deposits. In New Zealand, Heartland Bank
also offers Motor Finance and Asset Finance.

As the listed parent company, Heartland’s role is to ensure capital is allocated to the parts of its
business which generate strong returns, and to set the strategy and risk appetite within which the
group operates. This enables Heartland to maximise shareholder returns and each bank to enhance
the value it offers customers by helping more New Zealanders and Australians with their specialist
banking needs.

More: heartlandgroup.info

---

3Q2025
MARKET UPDATE
For the quarter ended 31 March 2025
INVESTOR
PRESENTATION

2
This presentation has been prepared by Heartland Group Holdings Limited
(NZX/ASX: HGH) (the Company or Heartland) for the purpose of briefings in
relation to this market update.
This presentation contains summary information only, which should not be relied on in
isolation from further detail in the market update.
The information in the presentation has been prepared with due care and attention, but its
accuracy, correctness and completeness cannot be guaranteed. No person (including the
Company and its directors, shareholders and employees) will be liable to any other person for
any loss arising in connection with the presentation.
The presentation outlines the Company’s forward-looking plans and projections. Those plans
and projections reflect current expectations, but are inherently subject to risk and
uncertainty, and may change at any time. There is no assurance that those plans will be
implemented or that projections will be realised. You are strongly cautioned not to place
undue reliance on any forward-looking statements, particularly in light of the current
economic climate.
No person is under any obligation to update this presentation at any time after its release or
to provide further information about the Company.
The information in this presentation is of a general nature and does not constitute financial
product advice, investment advice or any recommendation. Nothing in this presentation
constitutes legal, financial, tax or other advice.
Non-GAAP measures
Certain financial measures in this investor presentation are presented on a reported and
underlying basis. Reported results are prepared in accordance with NZ GAAP and include the
impacts of one-offs, both positive and negative, which can make it difficult to compare
performance between periods.
This presentation contains references to non-GAAP measures including underlying profit or
loss, underlying OPEX, underlying impairment expense, underlying NIM, underlying CTI ratios,
underlying impairment expense ratios and underlying ROE.
Because Heartland complies with accounting standards, investors know that comparisons
can be made with confidence between reported profits and those of other companies, and
there is integrity in Heartland’s reporting approach. These non-GAAP figures are provided as a
supplementary measure for readers to assess Heartland’s performance alongside NZ GAAP
reported measures, where one-offs, both positive and negative, can make it difficult to
compare profits between years. However, these non-GAAP measures do not have
standardised meanings prescribed by GAAP and should not be viewed in isolation nor
considered a substitute for measures reported in accordance with NZ GAAP. All amounts are
in New Zealand dollars unless otherwise indicated. Financial data in this presentation is as at
31 March 2025 unless otherwise indicated. It has not been audited or reviewed by any
independent registered public accounting firm.
3Q2025 underlying results (which are non-GAAP financial information) exclude the impact of
one-off regulatory assurance costs arising in relation to the acquisition of Heartland Bank
Australia (previously Challenger Bank Limited), one-off staff exit costs, the de-designation of
derivatives, the fair value changes on equity investments held, and other impacts of non-
recurring income. This is intended to allow for easier comparability between periods and is
used internally by management for this purpose.
The investor presentation of Heartland’s 1H2025 financial results released on 27 February
2025 includes at page 7 details of the 1H2025 one-offs and at page 45 general information
about Heartland’s use of non-GAAP financial measures.
DISCLAIMER

3
Heartland is on track to achieve an underlying NPAT for FY2025 of at least $45m.
3
3Q2025 SUMMARY
Consolidated group key financial metrics
ReportedUnderlying
Underlying
outlook
1H20253Q2025YTD1H20253Q2025YTDFY2025
OPEX$98.1m$46.9m$144.9m$90.4m$46.3m$136.6m
Impairment expense$50.5m$11.1m$62.8m$50.5m$11.1m$62.8m
NPAT$3.6m$16.6m$20.2m$10.7m$17.1m$27.7m≥$45m
NIM3.41%3.69%3.52%3.41%3.69%3.52%
CTI ratio63.2%57.6%61.3%57.6%56.8%57.3%
Impairment expense ratio
1
1.40%0.63%1.17%1.40%0.63%1.17%
ROE0.6%5.4%2.2%1.9%5.6%3.0%
Receivables
2
$7,121m$7,224m$7,224m
Note: See page 2 for a definition of underlying financial metrics. Refer to page 2 for details on one-offs in the periods covered in this
investor presentation.
1
Impairment expense as a percentage of average Receivables.
2
Receivables also includes Reverse Mortgages.
•NIM expanded 28 bps versus 1H2025 with improvement seen in both banks.
•OPEX in Q3 remained stable – both banks are on track to meet OPEX expectations for
2H2025. Cost management programmes are in place to improve operational efficiency
moving forward.
•Asset quality improvements are starting to show in Heartland Bank’s Motor Finance
portfolio following the introduction of more prescriptive collections and recoveries policies
for the NZ bank. As a result, early recovery efforts for the Motor Finance loans written off in
February 2025 have exceeded expectations.
•Heartland is focused on sustainable, profitable growth, and has seen compelling
Receivables growth in Reverse Mortgages and Livestock Finance in New Zealand and
Australia.
•Good progress has been made against Q3 NSA realisation targets. Exit strategies have
been refined, set and are now being accelerated.

4
0.68%
1.08%
0.77%
3.32%
0.92%
0.85%
3Q20244Q20241Q20252Q20253Q20252H2025
(Outlook)
3.72%
3.77%
3.79%
3.92%
>3.90%
3.68%
3.84%
3.82%
3.89%
3.93%
>4.00%
3Q20244Q20241Q20252Q20253Q20252H2025
(Outlook)
Avg. NIMExit NIM
NPAT
ReportedUnderlying
1H20253Q2025YTD1H20253Q2025YTD
$0.9m$10.2m$11.1m$3.1m$10.6m$13.8m
4
NZ BANKING
NIM
Impairment expense ratio
Underlying OPEX ($m)
Note: See page 2 for a definition of underlying financial metrics.
1
Annualised growth.
2
Includes NSAs.
3
Other lending is non-core lending which includes Personal Lending (including Harmoney NZ and Personal Loans portfolios), Business
Relationship, Wholesale Lending, O4B and Home Loans (including Online Home Loans and older residential Home Loans portfolios).
4
The retraction in other lending reflects Heartland Bank’s focus on its core lending portfolios (Reverse Mortgages, Rural, Motor Finance, Asset
Finance). The retraction was exacerbated by an early repayment of an $80m wholesale funding facility by a client who exited the New Zealand
market, an $83m retraction in Online Home Loans which is now part of NSAs and winding down, and a $60m retraction in Business Relationship.
62.1
32.5
66.1
1H20253Q20252H2025
Outlook
*YTD Mar-25 underlying CTI ratio is 54.1%
Receivables
as at 31 Mar 2025  $243m, -4.8%
1
since Mar 2024
$
4,794m
Underlying CTI ratio53.2%56.0%57.5%
Lending
1H2025
growth
1
Receivables
at 31 Mar 2025
1
3Q2025
growth
1
Outlook expectations
2H2025
growth
1
FY2025
growth
Reverse Mortgages15.3%$1,192.3m
 $41.7m
14.7%15.0%15.7%
Rural
2
-11.7%$688.9m
 $21.0m
12.7%19.2%3.1%
Motor Finance-3.9%$1,592.3m
 $6.1m
-1.6%7.3%1.6%
Asset Finance-11.4%$659.0m
$35.9m
-20.9%-8.1%-9.5%
Other lending
2,3
-49.9%
4
$661.6m
$36.7m
4
-21.3%--

5
NSA, 27.7%
Non-Core,
12.4%
Motor
Finance,
26.9%
Asset
Finance,
27.1%
Rural, 5.5%
Reverse
Mortgages,
0.3%
Business
20.5%
Motor and
Personal Loans
32.6%
Reverse &
Residential
Mortgages,
29.7%
Rural, 13.9%
NPLs, 3.3%
5
NZ BANKING: ASSET QUALITY
1
Rural lending includes Heartland Bank’s Livestock Finance, Rural Direct and Rural Relationship portfolios.
2
Reverse Mortgage NPLs arise due to late settlement (≥90 days) after the departure of the borrower from the property. As at 31 March 2025, this
was relevant to four loans, which had a weighted average LVR of 36%.
3
Includes NSAs.
4
As part of Heartland Bank’s simplification and strategic move away from unsecured lending, O4B is no longer accepting new applications and is
running down.
5
Home Loans includes Online Home Loans and older residential Home Loans portfolios.
NPL ratios
December 2024March 2025
NPL ratioNPL $ valueNPL ratioNPL $ value
Reverse Mortgages
2
0.02%$0.2m0.04%$0.5m
Rural
1,3
4.5%$29.8m3.4%$23.7m
Motor Finance2.9%$46.3m2.7%$42.8m
Asset Finance6.8%$47.0m7.5%$49.2m
Wholesale Lending0.0%$0.0m0.0%$0.0m
Business
Relationship
3
13.0%$31.4m14.6%$33.4m
Personal Lending4.5%$0.7m1.9%$0.3m
Open for Business
4
11.5%$7.6m13.0%$8.1m
Home Loans
3,5
0.2%$0.6m0.3%$0.6m
Heartland Bank portfolio composition
Core
2.81%
2.88%
3.60%
3.65%
3.40%
3.31%
Dec-2022Jun-2023Dec-2023Jun-2024Dec-2024Mar-2025

6
6
NZ BANKING: ASSET QUALITY
Motor Finance 90+DPD composition ($m and %)
Motor Finance
With more prescriptive collections and recoveries practices now in
place in NZ, early recovery efforts have exceeded expectations and
Heartland Bank’s Motor Finance arrears profile is improving.
•As at 31 March 2025, Heartland Bank had recovered $1.9m (49%) of the $3.9m expected recoveries.
•More resources are now focused on addressing earlier stage arrears. This is reducing the number of
loans moving into arrears and through the arrears cycle.
•As expected, due to the time required for vehicles to be repossessed and debt written off and
transferred to a debt collection agency, NPLs totalling $3.5m have rolled through to >365 DPD.
•Through repossession activity and business-as-usual write-offs, these arrears are expected to be
cleared before 30 June 2025.
$1.9m
Recovered
$2.0m
Remaining
Motor Finance (>365 DPD write-offs) recoveries
49%
Recovered
90+DPD composition ($m and %)
1.0%, $14
0.9%, $15
1.2%, $19
1.5%, $25
1.6%, $26
1.4%, $22
0.7%, $10
0.9%, $15
1.0%, $16
1.2%, $20
1.3%, $20
1.0%, $16
0.7%, $11
0.9%, $14
1.0%, $16
1.2%, $20
0.2%, $4
$35
$43
$51
$65
$46
$43
Dec-2022Jun-2023Dec-2023Jun-2024Dec-2024Mar-2025
90-179DPD180-364DPD365+ DPD
•Consistent with Heartland Bank’s expectations for Q3, the amount of O4B loans >90 DPD has
remained relatively flat, up $0.3m from 31 December 2024.
•Recovery activity continues as Heartland Bank works towards its commitment to having no O4B
arrears >365 DPD by 30 June 2026.
Open for Business
1.7%, $2
1.2%, $1
1.7%, $2
4.0%, $3
3.9%, $3
4.1%, $3
1.7%, $2
2.9%, $3
2.5%, $2
3.7%, $3
6.3%, $4
5.2%, $3
0.8%, $1
1.7%, $2
4.4%, $4
7.1%, $6
2.1%, $1
$6
$7
$9
$13
$7
$7
Dec-2022Jun-2023Dec-2023Jun-2024Dec-2024Mar-2025
90-179DPD180-364DPD365+ DPD

7
4.41%4.37%
2.62%
2.62%
0.11%
0.02%
0.15%
0.05%
4Q20241Q20252Q20253Q2025
NPL ratioImpairment exp ratio
2.69%
2.84%
2.67%
3.13%
3.27%
>3.60%
2.45%
2.57%
2.58%
3.01%
3.31%
>3.30%
3Q2024
(Rebase)
4Q2024
(Rebase)
1Q20252Q20253Q20252H2025
Outlook
Exit NIMAvg NIM
AU BANKING
NIM
1
NPL and Impairment expense ratio
Underlying OPEX (AU$m)
Note: All figures on this page are in AUD (including prior periods). See page 2 for a definition of underlying financial metrics.
1
NIM is calculated as net interest income/average gross interest earning assets.
2
Annualised growth.
3
Rebase NIM is NIM adjusted for the impact of the ADI acquisition.
4
Livestock Finance growth in 3Q2025 includes a number of large customer transactions.
23.2
11.2
23.3
1H20253Q20252H2025
Outlook
*YTD Mar-25 underlying CTI ratio is 53.8%
NPAT
ReportedUnderlying
1H20253Q2025YTD1H20253Q2025YTD
AU$11.3mAU$7.9mAU$19.2mAU$12.0mAU$7.9mAU$19.9m
Lending
1H2025
growth
1
Receivables
at 31 Mar 2025
2
3Q2025
growth
2
Outlook expectations
2H2025
growth
2
FY2025
growth
Reverse Mortgages15.0%AU$1,884.1m
 AU$87.1m
19.7%19.9%18.2%
Livestock Finance-1.0%AU$285.0m
 AU$36.3m
59.3%
4
18.4%16.6%
Receivables
as at 31 Mar 2025 AU$304m, 15.9%
2
since Mar 2024
AU$
2,209m
3
3
Underlying CTI ratio56.4%49.2%47.8%

8
8
NON-STRATEGIC ASSET (NSA) REALISATION PROGRESS
Outstanding balance3Q2025 realisation
AssetNZ($m)31 Dec 202431 Mar 2025ActualTarget
Rural Relationship
Total ($m)
122.6118.44.2-
CET1 ($m)
15.615.00.5-
Business Relationship
Total ($m)
59.656.92.74.1
CET1 ($m)
4.64.40.20.3
Online Home Loans
Total ($m)
246.5228.518.030.2
CET1 ($m)
12.211.30.91.5
Properties
Total ($m)
16.216.2--
CET1 ($m)
2.42.4--
Investment Properties
Total ($m)
4.44.4--
CET1 ($m)
0.50.5--
Equity Investments (NZ)
Total ($m)
5.35.3--
CET1 ($m)
5.35.3--
Equity Investments (AU)
Total ($m)
7.67.6--
CET1 ($m)
7.67.6--
Total NSAs
Total ($m)
462.2437.324.834.3
CET1 ($m)
48.246.61.61.8
Good progress has been made against Q3 NSA realisation targets. Exit strategies have been refined, set and are now being accelerated.
•The shortfall in actual to target realisation for Online Home Loans was a result of adopting retention strategies while several portfolio sale opportunities were finalised.
•Online Home Loans is now in run down after Heartland Bank closed applications to new customers on 18 March 2025. Heartland Bank’s 1-year fixed rate
1
and floating interest rate remain available to existing Online Home
Loans customers as they transition to alternative home loan providers when their current fixed rate terms come to an end.
Note: NSAs are primarily NZ assets that are outside of Heartland’s core lending strategy, or do not deliver threshold ROE. For more information, see Heartland’s 1H2025 investor presentation available at heartlandgroup.info.
1
Heartland Bank’s 1-year fixed interest rate for Online Home Loans will not be available after 30 June 2025.
0
50
100
150
200
250
300
350
400
450
500
31-Dec-2431-Mar-2530-Jun-2530-Sep-2531-Dec-2531-Mar-2630-Jun-26+
NSA realisation progress
Total ($m) EstimateTotal ($m) Actual
CET1 ($m) EstimateCET1 ($m) Actual
$m

Investor information
For more information
heartlandgroup.info/investor-information
Investor & media relations
Nicola Foley
Head of Corporate Communications & Investor Relations
+64 27 345 6809
nicola.foley@heartland.co.nz
THANK YOU

10
ADIAuthorised deposit-taking institutionO4BOpen for Business
bpsBasis pointsOPEXOperating expenses
CET1Common Equity Tier 1ReceivablesGross Finance Receivables (includes Reverse Mortgages)
CTI ratioCost-to-income ratioROEReturn on Equity
DPDDays past dueYTDYear to date
HarmoneyHarmoney Corp LimitedFY2025
Financial year ending 30 June 2025 (1 July 2024 to 30 June
2025)
Heartland, Heartland Group,
HGH
Heartland Group Holdings Limited or the Company2H2025Second half of FY2025 (1 January to 30 June 2025)
Heartland Bank, HBL, NZ Bank,
NZ Banking
Heartland Bank Limited3Q2025, Q3Third quarter of FY2025 (1 January to 31 March 2025)
Heartland Bank Australia,
HBAL, AU Bank, AU banking
Heartland Bank Australia Limited1H2025First half of FY2025 (1 July to 31 December 2024)
LVRLoan-to-value ratio2Q2025Second quarter of FY2025 (1 October to 31 December 2024)
NIMNet interest margin1Q2025First quarter of FY2025 (1 July to 30 September 2024)
NPATNet profit after tax4Q2024
Fourth quarter of the financial year ending 30 June 2024 (1 April
to 30 June 2024)
NPLNon-performing loan3Q2024
Third quarter of the financial year ending 30 June 2024 (1
January to 31 March 2024)
NSAsNon-strategic assets
GLOSSARY