Lending growth supports bank’s profit and expansion
Heartland Bank Australia’s reverse mortgage portfolio has grown to $1.98 billion as at June 30, 2025, marking a significant milestone for the lender.
The increase, representing an 18.5% rise from the previous year, was a key driver in Heartland Group’s full-year results, which saw the group report an underlying net profit after tax of $46.9 million.
“Heartland Bank Australia’s reverse mortgage portfolio exceeded the 2H 2025 outlook, with receivables up $309 million from June 30, 2024 to $1.98 billion as at June 30, 2025,” said Andrew Dixson (pictured), chief executive of Heartland Group Holdings.
“Despite heightened competition, Heartland Bank Australia’s market share increased from 36% as at 31 March 2024 to 40% as at 31 March 2025. It continues to be the leading provider of reverse mortgages in Australia.”
The group’s results for the year highlighted the importance of reverse mortgage lending in both Australia and New Zealand, with receivables up 15.5% in New Zealand as well. Heartland’s overall net profit after tax was $38.8 million, while the underlying profit met guidance at $46.9 million.
Last year, the banking group announced the rebranding of its Australian reverse mortgage business, Heartland Finance to Heartland Bank after the acquisition of Challenger Bank in April 2024.
The company’s focus on capital efficiency and risk management was evident in the restoration of its net interest margin and the integration of its Australian businesses into the newly acquired authorised deposit-taking institution.
Heartland Bank Australia’s transition to deposit funding was also completed during the year, with deposits now comprising 81% of the bank’s funding base. This contributed to a notable uplift in net interest margin, which reached 3.59% at year-end.
Looking ahead, Heartland Group has set an underlying profit target of at least $85 million for FY 2026 and will continue to invest in technology and core lending products. The board declared a final dividend of two cents per share, bringing the total for the year to four cents per share.
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