Heartland Group (ASX:HGH) confirmed it remains on track to achieve an underlying net profit after tax of at least NZ$85 million and an underlying return on equity of at least 7% for FY26.
Heartland reported an expansion in its average net interest margin to 4.06% for the quarter, while the cost-to-income ratio saw a favourable reduction, largely driven by performance improvements within Heartland Bank Australia.
The group's "reverse mortgages" portfolios in both Australia and New Zealand continued to perform strongly, alongside a return to growth in motor finance and asset finance.
Despite the positive figures—including a quarterly underlying NPAT of NZ$21.4 million—management remains watchful.
The report highlighted "ongoing uncertainty in the Gulf region" as a factor requiring close monitoring, specifically regarding its potential impact on customer demand and credit quality across Australasia.
Progress also continues on the divestment of non-strategic assets, with values reducing by NZ$35.6 million during the period. The realisation process is expected to largely conclude by June 30.