What were the key financial targets confirmed by Heartland Group (ASX:HGH) for FY26?

Heartland Group reaffirmed its full-year guidance, stating it is on track to achieve an underlying net profit after tax (NPAT) of at least $85 million.

How did Heartland Group (ASX:HGH) perform in the third quarter of 2026?

The group reported a solid quarterly performance with an underlying NPAT of $21.4 million. Key operational metrics improved, including an expansion of the average net interest margin (NIM) to 4.06% and a reduction in the cost-to-income (CTI) ratio, indicating better efficiency across its banking operations.

Which business segments drove growth for Heartland Group (ASX:HGH) recently?

Growth was primarily driven by strong performance in "reverse mortgages" across both Australian and New Zealand markets.

What is the status of Heartland Group’s non-strategic asset (NSA) divestment?

Heartland is currently in the process of clearing non-strategic assets to streamline its balance sheet. During the recent quarter, the value of these assets was reduced by $35.6 million, and management expects this realisation process to be largely completed by 30 June 2026.

How did Heartland Bank Australia impact the group’s overall efficiency?

Heartland Bank Australia was a primary driver behind the group’s improved cost-to-income ratio this quarter. Efficiency gains within the Australian subsidiary helped lower the overall group CTI ratio, which sits at 54.6% for the quarter, well within the full-year guidance of remaining below 56%.

What external risks is Heartland Group (ASX:HGH) currently monitoring?

Management has flagged "ongoing uncertainty in the Gulf region" as a potential headwind for the remainder of the year. This geopolitical instability is being monitored for its secondary effects on customer demand and credit quality within the Australian and New Zealand financial markets.

Heartland confirms FY26 targets amid strong growth

Written by Jon CuthbertPublished Apr. 22 2026Last Updated Apr. 22 2026

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.