Marac-parent Heartland has reported a 9% rise in profit to $25.6 million for the six months to the end of December 2015.
Net finance receivables increased by $66.5 million to $2.93 billion. However, a reduction in cash and cash equivalents and investments of $64.7m saw total assets decrease by $14.8 million.
Motor vehicle lending continued to experience strong growth – increasing by $30.0m.
Reverse mortgages grew in New Zealand and Australia by $9 million and A$18 million respectively, however, after foreign exchange translation, overall growth was $6.1 million.
Impaired asset expense – late and defaulting loans – increased by $0.5m to $5.6 million.
Lending to businesses continues to grow for Heartland.
“This growth was achieved through continued focus on providing a single relationship for plant and equipment and working capital finance, as well as an increased reach through intermediaries,” the company says in its earnings statement. “Our service proposition is being further expanded through the recent launch of an online origination platform for small business loans called “Open for Business”.
“The platform is still in its early stages of development and continues to be refined to tailor it to customers’ needs. The number of customers applying for loans through the platform is expected to grow in the second half of the financial year.”
Vehicle loans continue to grow, the loan book rising $30 million to $730 million.
