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
23 October 2025

Heartland trading update

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) today provides a trading update for
the three months to 30 September 2025 (Q1).

Heartland has delivered a solid performance for Q1 of the financial year ending 30 June 2026
(FY2026), improving profitability and return on equity (ROE) across the quarter. Overall net interest
margin (NIM) continued to expand and cost growth has remained stable. Asset quality for Heartland
Bank Limited’s (Heartland Bank) Motor Finance
1
portfolio demonstrated consistent improvement as
a result of enhanced collections, recoveries and write-off strategies. As New Zealand business
conditions remain challenging, Heartland Bank’s Business Finance
2
non-performing loans (NPLs)
have increased – the portfolio remains appropriately provisioned, and Heartland Bank expects NPL
improvement in the second quarter of FY2026 (1 October to 31 December 2025, Q2). Livestock
Finance seasonal impacts have affected Heartland Bank Australia Limited (Heartland Bank
Australia)’s NPL ratio and are also expected to improve in Q2.

Strong momentum was maintained in Reverse Mortgages within both banks, while subdued markets
and usual seasonal contractions impacted growth in Heartland’s other core lending portfolios.
Lending performance is expected to improve as FY2026 progresses. Notably, strong progress has
been made in the realisation of Heartland’s non-strategic assets (NSAs), surpassing quarterly
estimates.

Heartland NZ Banking AU Banking
Reported Underlying
3
Reported Underlying
3
Reported Underlying
3

Q1 Q1
FY2026
guidance
Q1 Q1
FY2026
guidance
Q1 Q1
FY2026
guidance
NOI $89.6m $86.5m
No
guidance
provided
$60.7m $57.6m
No
guidance
provided
AU$26.8m AU$26.8m
No guidance
provided
OPEX $46.3m $46.3m $31.1m $31.1m <$129.1m AU$13.8m AU$13.8m <AU$54.6m
Impairment
expense
$7.0m $7.0m $7.1m $7.1m
No
guidance
provided
(AU$0.1m) (AU$0.1m)
No guidance
provided
NPAT $26.7m $23.6m ≥$85m $17.1m $14.0m >$45m AU$9.1m AU$9.1m
>AU$37m
(NZ$40m)
Average
NIM
3.89% 3.89% >3.90% 4.06% 4.06% >4.20% 3.62% 3.62% >3.40%
Exit NIM 3.85% 3.85% >3.95% 4.08% 4.08% >4.25% 3.50% 3.50% >3.65%
CTI ratio 51.6% 53.5% <53.5% 49.7%
4
52.4%
4
<53.5%
4
48.1%
4
48.1%
4
<45.5%
4

Impairment
expense
ratio
5

0.39% 0.39% <0.55% 0.61% 0.61% <0.85% (0.01%) (0.01%) <0.10%
ROE 8.6% 7.6% ≥7%

Non-Strategic Assets (NSAs)
NSA realisation accelerated in Q1 and is exceeding Heartland’s estimates, with momentum
continuing early into Q2. Highlights include:
‒ good progress in achieving accelerated exits from Rural and Business Relationship borrowers
primarily through sale of security and refinance:

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info 2
• the largest Relationship exposure partially settled in Q1 with the residual refinance now
unconditional and scheduled to settle in October 2025
• the third largest Relationship exposure went unconditional in September 2025 and was
repaid in early October 2025
‒ Home Loans
6
continues to wind down ahead of expectations through early repayments
‒ the unconditional sale of one of the two dairy farms which make up the Properties NSA –
settlement is expected in October 2025
‒ the full exit of Heartland’s Harmoney Corp Limited shareholding, significantly above carrying
value as at 30 June 2025 – this generated a fair value gain of $3.1 million which is the key
difference between underlying and reported results in Q1
‒ the sale of Heartland Bank Australia’s shareholding in Alex Bank settled in October 2025.

By the end of the 2025 calendar year (CY2025), Heartland estimates the total value of NSAs to be
$179.5 million, a $358.1 million (-66.6%) reduction since 30 June 2024.

NZ banking
Heartland Bank’s Q1 NIM of 4.06% and exit NIM
7
of 4.08% were down 12 bps and 5 bps respectively
on the previous quarter (1 April to 30 June 2025, Q4). Q4 NIM benefitted from a year-to-date
correction between other operating income and net interest income generated by derivatives.
Excluding that benefit, Q4 NIM was 4.06%. Therefore, on a like-for-like basis, Q1 NIM was flat on Q4.
This was primarily due to a substantial rate reduction for Reverse Mortgages, partially offset by
improvements in cost of funds.

With stable NOI, underlying OPEX reduced by $2.4 million in Q1 to $31.1 million, driving a reduction
in the Q1 underlying CTI ratio to 52.4%
4
, down from 56.9% in Q4.

Heartland Bank’s impairment expense ratio improved, down 9 bps from Q4 to 0.61% in Q1.
Heartland Bank’s total non-performing loan (NPL) ratio of 3.22% was flat on Q4, however the value
of NPLs reduced by $3.5 million from 30 June 2025 to $148.2 million as at 30 September 2025 as
overall asset quality continued to improve. Excluding NSAs and Unsecured Lending
8
, Heartland
Bank’s NPL ratio improved, reducing by 4 bps to 2.36% as at 30 September 2025.

As at 31 August 2025, Heartland Bank’s Consumer Motor Finance
9
arrears of 4.6% (as per Centrix’s
measure of arrears greater than or equal to 14 days past due (DPD)) continues to outperform the
industry average of 5.1%.
10
Late-stage arrears for the Motor Finance portfolio have seen further
improvement in Q1, and recoveries continue to perform as expected. Heartland Bank maintains its
expectation that it will have no arrears greater than 180 DPD by 30 June 2026.

Trading conditions remained challenging for the business sector, resulting in subdued demand and
elevated arrears for Heartland Bank’s Business Finance portfolio. Arrears were up $2.9 million from
30 June 2025 and are being carefully managed. Heartland Bank is working closely with customers in
arrears and expects to see a reduction in NPLs in Q2. The Business Finance portfolio remains
appropriately provisioned recognising the secured nature of this lending.

Reverse Mortgage growth continued, with Receivables up $43.6 million (14.0%)
11
in Q1 to $1,276.9
million as at 30 September 2025. Excluding Livestock Finance which experienced the usual seasonal
contraction, the Rural
12
portfolio grew by $5.8 million (6.1%)
10
in Q1 to $380.3 million as at 30
September 2025. Motor Finance Receivables were down $10.8 million (-2.5%)
10
in Q1 to $1,683.6
million as at 30 September 2025, as economic conditions remain subdued, and reflecting Heartland
Bank’s shift to higher quality distribution channels.

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info 3
AU banking
While Heartland Bank Australia’s NIM expanded 15 bps in Q1 to 3.62%, the exit NIM of 3.50%,
reflects a full pass through of the official cash rate reduction to Reverse Mortgages.

Underlying OPEX in Q1 was AU$13.8 million, an increase of AU$1.7 million on Q4, while the
underlying CTI ratio increased to 48.1%
4
in Q1, from 47.7% in Q4. This was driven by:
• a AU$0.4 million increase in professional services, marketing and broker costs linked to
Reverse Mortgage growth
• AU$0.3 million related to the exploration phase of the implementation of a new unified
origination and servicing platform – costs related to this technology initiative are expected
to be elevated in Q2 as vendor negotiations and programme planning continues
• the AU$0.6 million impact of additional roles filled in the previous financial year to
strengthen capability and capacity for growth, and to fill compliance and marketing
vacancies in Q1.

The NPL ratio increased to 3.09% in Q1 from 2.40% in Q4 largely due to seasonal impacts related to
the Livestock Finance portfolio which are expected to normalise in Q2.

Reverse Mortgage Receivables were up AU$85.9 million (17.2%)
10
in Q1 to AU$2,066.3 million as at
30 September 2025. Livestock Finance Receivables were down AU$22.2 million (-34.7%)
10
in Q1 to
AU$231.7 million as at 30 September 2025 due to the usual seasonality of the portfolio.

In October 2025, Heartland Bank Australia repaid its final outstanding AU$100 million medium-term
note prior to its contractual maturity in October 2027, replaced by cheaper deposit funding. The
early repayment attracted a break fee which will impact NPAT and NIM in Q2. However, this impact
will be recovered across the remainder of FY2026 given the margin benefits of deposit funding and
will provide significant benefit into the financial years ending 30 June 2027 and 30 June 2028.

2025 Investor Day
Heartland intends to present to investors its updated long-term ambitions at an upcoming investor
day. While the investor day will no longer take place ahead of Heartland’s Annual Meeting on 13
November 2025, significant progress has been made in negotiations with preferred vendors for
Heartland’s technology initiatives. Following which, Heartland will be able to confirm a date for its
investor day, which is still intended to take place in CY2025.

– ENDS –

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 Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info 4

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


Endnotes

1
Motor Finance includes Wholesale Lending.
2
Business Finance includes Asset Finance and Business Relationship. Excludes NSAs.
3
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 fair value changes on equity investments held. 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 FY2025 financial results released on
21 August 2025 includes at page 7 details of the FY2025 one-offs and at page 48 general information about
Heartland’s use of non-GAAP financial measures.
4
Excluding intercompany group charges.
5
Impairment expense as a percentage of average gross finance receivables (Receivables).
6
Includes Online Home Loans and old residential mortgages.
7
The Q1 exit NIM is the NIM achieved on 30 September 2025 (rather than the average NIM for Q1).
8
Unsecured Lending includes Open for Business and Personal Lending portfolios which are winding down.
9
Consumer Motor Finance are Motor Finance loans to individuals rather than businesses.
10
Industry average arrears are based on auto arrears as at August 2025, reported by Centrix in its Credit
Insights Report, September 2025.
11
Annualised growth.
12
Rural includes Rural Relationship, Rural Direct and Livestock Finance. Excludes NSAs

---

Investor Presentation
1Q2026 Trading Update
For the quarter ended 30 September 2025

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
30 September 2025 unless otherwise indicated. It has not been audited or reviewed by any
independent registered public accounting firm.
1Q2026 underlying results (which are non-GAAP financial information) exclude the impact of
fair value changes on equity investments held. 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 FY2025 financial results released on 21 August 2025
includes at page 7 details of the FY2025 one-offs and at page 48 general information about
Heartland’s use of non-GAAP financial measures.
Disclaimer

3
•Overall NIM continued to expand, and cost growth has remained stable.
•Asset quality for Heartland Bank’s Motor Finance portfolio has demonstrated consistent
improvement as a result of enhanced collections, recoveries and write-off strategies.
•As NZ business conditions remain challenging, Heartland Bank’s Business Finance NPLs have
increased – the portfolio remains appropriately provisioned, and Heartland Bank expects an
improvement in NPLs in Q2.
•Livestock Finance seasonal impacts have affected Heartland Bank Australia’s NPL ratio and are also
expected to improve in Q2.
•Strong momentum was maintained in Reverse Mortgages within both banks, while subdued markets
and usual seasonal contractions impacted growth in Heartland’s other core lending portfolios.
•Lending performance is expected to improve as FY2026 progresses.
•Strong progress has been made in the realisation of Heartland’s NSAs, surpassing quarterly
estimates.
3
1Q2026 summary
Consolidated group key financial metrics
ReportedUnderlying
Underlying
guidance
3Q20254Q20251Q20263Q20254Q20251Q2026FY2026
NOI$81.4m$85.7m$89.6m$81.4m$83.9m$86.5m
No guidance
provided
OPEX$46.9m$47.7m$46.3m$46.3m$44.9m$46.3m
Impairment expense$11.1m$10.0m$7.0m$11.1m$10.0m$7.0m
NPAT$16.6m$17.8m$26.7m$17.1m$18.4m$23.6m≥$85m
Average NIM3.69%3.87%3.89%3.69%3.87%3.89%>3.90%
Exit NIM3.66%3.93%3.85%3.66%3.93%3.85%>3.95%
CTI ratio57.6%55.5%51.6%56.8%53.5%53.5%<53.5%
Impairment expense ratio
1
0.63%0.56%0.39%0.63%0.56%0.39%<0.55%
ROE5.4%5.9%8.6%5.6%6.1%7.6%≥7%
Receivables
2
$7,224m$7,156m$7,250m
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 and the impact from FX changes.
Heartland delivers a solid performance for 1Q2026, improving profitability and ROE across the quarter.

4
4
Non-strategic asset (NSA) realisation progress
NSA realisation accelerated in Q1 and is exceeding Heartland’s estimates, with momentum continuing early into Q2.
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 FY2025 investor presentation available at heartlandgroup.info.
1
Includes Online Home Loans and old residential mortgages.
Outstanding balance1Q2026 realisation
AssetNZ($m)30 June 202530 Sep 2025ActualTarget
Rural Relationship
Total ($m)
112.0102.99.113.9
Capital ($m)
17.116.01.11.8
Business Relationship
Total ($m)
47.839.38.43.4
Capital ($m)
6.96.70.20.3
Home Loans
1
Total ($m)
171.7125.746.033.1
Capital ($m)
10.27.52.71.6
Properties
Total ($m)
16.216.10.1-
Capital ($m)
2.62.7--
Investment Properties
Total ($m)
4.44.4-2.0
Capital ($m)
0.60.6-0.2
Equity Investments (NZ)
Total ($m)
7.0
1.1
5.9-
Capital ($m)
4.50.73.8-
Equity Investments (AU)
Total ($m)
5.7
6.0
--
Capital ($m)
5.76.0--
Total NSAs
Total ($m)
364.8295.5
69.652.4
Capital ($m)
47.640.1
7.83.9
0
50
100
150
200
250
300
350
400
450
3Q254Q251Q262Q263Q264Q26FY27+
$m
NSA realisation progress
Total ($m) EstimateCapital ($m) EstimateTotal ($m) ActualCapital ($m) Actual
•Good progress in achieving accelerated exits from Rural and Business Relationship borrowers primarily
through sale of security and refinance:
•the largest Relationship exposure partially settled in Q1 with the residual refinance now unconditional
and expected to settle in October 2025
•the third largest Relationship exposure went unconditional in September 2025 and was repaid in early
October 2025.
•Home Loans
1
continues to wind down ahead of expectations through early repayments.
•The unconditional sale of one of the two dairy farms which make up the Properties NSA – settlement is
expected in October 2025.
•The full exit of Heartland’s Harmoney Corp Limited shareholding, significantly above carrying value as at 30
June 2025 – this generated a fair value gain of $3.1m which is the key difference between underlying and
reported results in 1Q2026.
•The sale of Heartland Bank Australia’s shareholding in Alex Bank settled in October 2025.

5
0.77%
3.32%
0.92%
0.70%
0.61%
<0.85%
1Q20252Q20253Q20254Q20251Q2026FY2026
(Outlook)
5
NZ banking
NIM
Underlying impairment expense ratio
Underlying OPEX ($m) & CTI ratio
6
Note: See page 2 for a definition of underlying financial metrics.
1
Annualised growth.
2
Rural includes Rural Relationship, Rural Direct and Livestock Finance. Excludes NSAs.
3
Motor Finance includes Wholesale Lending.
4
Business Finance includes Asset Finance and Business Relationship. Excludes NSAs.
5
Unsecured Lending includes Personal Lending and Open for Business which are winding down.
6
CTI ratio for 1Q2026 and FY2026 outlook exclude intercompany group charges .
7
1Q2026 reflects seasonal Livestock Finance contraction. Excluding Livestock Finance, the Rural portfolio grew by $5.8m,
representing 6.1% annualised growth.
30.2
31.9
32.5
33.5
31.1
<129.1
53.3%
53.1%
56.0%
56.9%
52.4%
<53.5%
1Q20252Q20253Q20254Q20251Q2026FY2026
(Outlook)
OPEXCTI ratio
Receivables
as at 30 Sep 2025  $363m, -7.3%
1
since 30 Sep 2024
$
4,598m
Lending
3Q2025
growth
1
4Q2025
growth
1
Receivables
at 30 Sep 2025
1Q2026
growth
1
FY2026
(Outlook)
Reverse Mortgages14.7%13.8%$1,276.9m
 $43.6m
14.0%>18%
Rural
2,7
18.7%27.0%$579.4m
 $29.4m
-19.2%>6%
Motor Finance
3
-1.1%-5.1%$1,683.6m
 $10.8m
-2.5%>3%
Business Finance
4
-21.4%-24.7%$734.9m
$44.8m
-22.8%<-9%
Unsecured Lending
5
-34.7%-65.2%$56.1m
$6.3m
-39.9%
No outlook
provided
NSAs-23.2%-76.6%$267.6m
$64.0m
-76.6%
FY2025
1.40%
3.82%
3.89%
3.93%
4.13%
4.08%
>4.25%
3.82%
3.79%
3.92%
4.18%
4.06%
>4.20%
1Q20252Q20253Q20254Q20251Q2026FY2026
(Outlook)
Exit NIMAvg. NIM
NPAT
ReportedUnderlyingUnderlying guidance
3Q20254Q20251Q20263Q20254Q20251Q2026FY2026
$10.2m$10.8m$17.1m$10.6m$10.8m$14.0m>$45m

6
NZ banking: Impairment and provisioning
Total provisions and coverage
Heartland Bank’s overall asset quality continues to improve.
-The total NPL ratio of 3.22% was flat on 4Q2025, however the value of NPLs reduced by $3.5m from 30 June 2025 to $148.2m as at 30 September 2025 as overall asset quality continued to improve.
-Excluding NSAs and Unsecured Lending
1
, Heartland Bank’s NPL ratio improved, reducing by 4 bps to 2.36% as at 30 September 2025.
The following slide outlines the trend in asset quality across Heartland Bank’s core lending portfolios of Motor Finance
2
, Business Finance
3
and Rural
4
.
5
2.2
7.9
1.1
(4.6)
(2.8)
3.5
15.9
2.0
4.0
6.1
4.4
20.2
7.9
14.1
4.7
(0.2)
(4.2)
(0.1)
(5.2)
(1.0)
9.8
39.8
10.8
8.3
7.1
1Q20252Q20253Q20254Q20251Q2026
Collective provision expenseSpecific provision expenseWrite-offsRecovery
Impairment expense ($m)
55.5
48.2
54.4
46.7
43.9
23.8
28.5
28.9
20.7
26.8
2.06%
2.10%
2.31%
1.94%
2.13%
Sep-24Dec-24Mar-25Jun-25Sep-25
Collective ProvisionSpecific ProvisionCoverage Ratio
1
Unsecured Lending includes Personal Lending and Open for Business which are winding down.
2
Motor Finance includes Wholesale Lending.
3
Business Finance includes Asset Finance and Business Relationship. Excludes NSAs.
4
Rural includes Rural Relationship, Rural Direct and Livestock Finance. Excludes NSAs.
5
Reverse Mortgage NPLs arise due to late settlement (90 days after the 12-month repayment period) after the departure of the
borrower from the property. As at 30 September 2025, this included 8 loans with a total NPL value of $1.5m and a weighted average
LVR of 32.54%.
-Motor Finance: Late-stage arrears have seen further improvement in 1Q2026, and recoveries
continue to perform as expected. Heartland Bank maintains its expectation that it will have no
arrears greater than 180 DPD by 30 June 2026. Motor Finance arrears continue to outperform the
industry average – see page 10.
-Rural: Arrears remain low within this portfolio with the positive trading environment within the
sector.
-Business Finance: Trading conditions remained challenging for the business sector, resulting in
elevated arrears within this portfolio. Arrears were up $2.9m from 30 June 2025 and are being
carefully managed. Heartland Bank is working closely with customers and expects to see a reduction
in NPLs in 2Q2026. The portfolio remains appropriately provisioned recognising the secured nature
of this lending.

7
7
NZ banking: Asset quality
1
Total Bank NPL includes NSAs and Unsecured Lending (which includes Personal Lending and Open for Business which are winding
down).
2
Rural includes Rural Relationship, Rural Direct and Livestock Finance. Excludes NSAs.
3
Motor Finance includes Wholesale Lending.
4
Business Finance includes Asset Finance and Business Relationship. Excludes NSAs.
NPL ratios
1
Asset quality – Rural
2
Asset quality – Motor Finance
3
1
3.82%
3.40%
3.31%
3.21%
3.22%
2.84%
2.34%
2.46%
2.40%
2.36%
Sep-24Dec-24Mar-25Jun-25Sep-25
Total Bank NPLCore Portfolio NPL
1.4%, $24.8
1.5%,
$25.8
1.5%,
$24.7
1.3%,
$22.0
1.1%,
$19.9
1.2%,
$20.2
0.8%,
$13.2
0.6%, $9.8
1.1%,
$20.3
0.0%, $0.4
29.4%,
$19.1
17.3%, $8.0
24.4%, $9.2
26.0%, $8.4
3.7%, $65.0
2.7%, $46.3
2.2%, $37.9
1.9%, $32.3
NPLsProvisionsNPLsProvisionsNPLsProvisionsNPLsProvisions
30-Jun-202431-Dec-202430-Jun-202530-Sep-2025
Non-Performing, 90-179DPDNon-Performing, 180-364DPDNon-Performing, 365+DPD
Asset quality – Business Finance
4
0.9%, $9.8
1.8%,
$16.1
1.9%, $15.2
2.6%,
$19.4
1.4%,
$14.6
1.4%,
$12.3
2.3%,
$17.6
1.3%, $9.8
1.7%,
$17.7
2.2%,
$19.7
3.3%,
$25.6
4.4%,
$32.0
40.3%,
$17.0
37.9%,
$18.2
32.4%,
$18.9
33.9%,
$20.8
4.1%, $42.1
5.5%, $48.1
7.5%, $58.3
8.3%, $61.2
NPLsProvisionsNPLsProvisionsNPLsProvisionsNPLsProvisions
30-Jun-202431-Dec-202430-Jun-202530-Sep-2025
Non-Performing, 90-179DPDNon-Performing, 180-364DPDNon-Performing, 365+DPD
1.8%, $10.6
0.1%, $0.6
0.1%, $0.5
0.3%, $1.6
0.2%, $1.1
0.7%, $3.6
0.2%, $1.3
0.1%, $0.8
0.4%, $2.4
0.4%, $2.1
0.6%, $3.7
0.6%, $3.4
34.0%, $4.8
24.8%, $1.6
23.9%, $1.3
22.5%, $1.3
2.4%, $14.0
1.2%, $6.3
0.9%, $5.5
1.0%, $5.8
NPLsProvisionsNPLsProvisionsNPLsProvisionsNPLsProvisions
30-Jun-202431-Dec-202430-Jun-202530-Sep-2025
Non-Performing, 90-179DPDNon-Performing, 180-364DPDNon-Performing, 365+DPD

8
4.37%
2.62%2.62%
2.40%
3.09%
0.02%
0.15%
0.05%
0.27%
-0.01%
<0.10%
1Q20252Q20253Q20254Q20251Q2026FY2026 (Outlook)
NPL ratioUnderlying impairment expense ratio
FY2025, 0.13%
AU banking
NIM
1
Asset quality
Underlying OPEX (AU$m) & CTI ratio
3
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
CTI ratio for 1Q2026 and FY2026 outlook exclude intercompany group charges.
4
Quarterly growth for Livestock Finance is affected by usual seasonal contractions.
NPAT
ReportedUnderlyingUnderlying guidance
3Q20254Q20251Q20263Q20254Q20251Q2026FY2026
AU$7.9mAU$8.0mAU$9.1mAU$7.9mAU$8.2mAU$9.1m>AU$37m (NZ$40m)
Lending
3Q2025
growth
2
4Q2025
growth
2
Receivables
at 30 Sep 2025
1Q2026
growth
2
FY2026
(Outlook)
Reverse Mortgages19.7%20.5%AU$2,066.3m
 AU$85.9m
17.2%>19%
Livestock Finance
4
59.3%-43.8%AU$231.7m
 AU$22.2m
-34.7%>20%
Receivables
as at 30 Sep 2025 AU$301m, 14.9%
2
since 30 Sep 2024
AU$
2,323m
2.67%
3.13%
3.27%
3.59%
3.50%
>3.65%
2.58%
3.01%
3.31%
3.47%
3.62%
>3.40%
1Q20252Q20253Q20254Q20251Q2026FY2026
(Outlook)
Exit NIMAvg. NIM
11.0
12.1
11.2
12.1
13.8
<54.6
56.4%
56.3%
49.2%
47.7%
48.1%
<45.5%
1Q20252Q20253Q20254Q20251Q2026FY2026
(Outlook)
OPEXCTI ratio

Additional
information

10
1
0
Note:
•For the purpose of this comparison, Heartland Bank’s total Motor Finance arrears are calculated using the calculation method used by Centrix (arrears greater than or equal to 14 DPD) as at 31 August 2025.
•Auto industry arrears are sourced from the Centrix Credit Indicator Report, where 31/12/2024, 31/03/2025, 30/06/2025, and 31/08/2025 uses the January, April, July, and September 2025 Insights Report, respectively.
•Consumer Motor are Motor Finance loans to individuals rather than businesses.
Motor Finance arrears vs. auto industry average
5.4%
5.4%
5.1%
6.3%
5.9%
5.2%
4.9%
4.6%
6.1%
5.8%
5.0%
4.6%
4.3%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
31/12/202431/03/202530/06/202531/08/202530/09/2025
Market Arrears (Centrix Market Report)Total Motor (HBL)Consumer Motor (HBL)

11
bpsBasis pointsReceivablesGross Finance Receivables (includes Reverse Mortgages)
cpsCents per shareROEReturn on Equity
CTI ratioCost-to-income ratio4Q26+Fourth quarter of FY2026 (1 April to 30 June 2026) and onwards
DPDDays past due3Q26Third quarter of FY2026 (1 January to 31 March 2026)
Exit NIMNIM on the last day of the reporting period.2Q26Second quarter of FY2026 (1 October to 31 December 2025)
Heartland, Heartland Group,
HGH
Heartland Group Holdings Limited or the Company1Q26, 1Q2026First quarter of FY2026 (1 July to 30 September 2025)
Heartland Bank, HBL, NZ
Banking
Heartland Bank LimitedFY2026Financial year ending 30 June 2026 (1 July 2025 to 30 June 2026)
Heartland Bank Australia,
HBAL, AU banking
Heartland Bank Australia Limited4Q2025Fourth quarter of FY2025 (1 April to 30 June 2025)
LVRLoan-to-value ratio3Q2025Third quarter of FY2025 (1 January to 31 March 2025)
NIMNet interest margin2Q2025Second quarter of FY2025 (1 October to 31 December 2024)
NPATNet profit after tax1Q2025First quarter of FY2025 (1 July to 30 September 2024)
NPLNon-performing loanFY2025Financial year ended 30 June 2025 (1 July 2024 to 30 June 2025)
NSANon-strategic assets
OPEXOperating expenses
Glossary

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