19 Aug 2011

Heartland announces $7m profit

1:58 pm on 19 August 2011

The new $2.1 billion financial services company, Heartland New Zealand, has posted its first full-year profit.

Heartland, which was established earlier this year through the merger of CBS Canterbury, Southern Cross Building Society and Marac Finance, made a net profit of $7.1 million in the year to the end of June.

That's in line with previous forecasts of $6 - $8 million and includes six months of results from Marac, and six months from the holding company Building Society Holdings.

Heartland managing director Jeff Greenslade says the result reflects that the company is still in start up mode, though many of the one-off costs are now behind it.

Mr Greenslade says Heartland still intends to make a formal application to the Reserve Bank for a banking license but first needs to complete the proposed $100 million acquisition of PGG Wrightson Finance.

Heartland had forecast a profit of $20 - $24 million for 2012 and says it will update investors at the end of the September.