Heartland Group Holdings' (ASX:HGH, NZE:HGH) underlying net profit after tax for the fiscal 2026 third quarter came in at NZ$21.4 million, according to a Thursday Australian bourse filing.
It reported underlying net profit after tax of NZ$17.1 million in the year-ago quarter, according to a separate filing.
The firm is closely monitoring potential impacts on customer demand and credit quality in New Zealand and Australia in the wake of the conflict in the Middle East.
Heartland Bank's March quarter average net interest margin was down 3 basis points to 4.09%, with the exit net interest margin down 9 basis points to 4.02%, driven by portfolio mix. Both are expected to increase in the June quarter due to ongoing benefits from reduced cost of funds. Geopolitical risks may create headwinds for net interest margin, it cautioned.
Heartland Bank's overall nonperforming loan ratio fell by 23 basis points in the March quarter since Dec. 30, 2025, to 2.81%.
It remains on track to deliver an underlying return on equity of at least 7% and an underlying net profit after tax of at least NZ$85 million for the financial year ending June 30, per the filing.
Its shares rose 1% in recent trading on Thursday.