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Asia

Heartland Group Holdings Advances TSB Merger Plan After Due Diligence Completion

Heartland Group Holdings (ASX:HGH, NZE:HGH) said it has completed confirmatory due diligence with Toi Foundation on its proposed acquisition of TSB Bank, clearing a key condition ahead of the planned merger between Heartland Bank and TSB to form TSB Heartland Bank, according to a Monday filing with the Australian and New Zealand bourses.The company added that a warranty and indemnity (W&I) deed was executed on Sunday, and W&I insurance has been obtained by both parties, per the filing.The transaction remains on track for expected completion in December, subject to remaining requirements including Taranaki community consultation, approvals from Toi Foundation trustees and Heartland shareholders, and relevant regulatory clearances in New Zealand and Australia, the filing added.

ASX:HGHNZE:HGH
Asia

Heartland Group's Acquisition of TSB Bank to Help Reduce Exposure to Riskier Lending, Fitch Ratings Says

Heartland Group Holdings' (ASX:HGH, NZE:HGH) proposed acquisition of New Zealand-based TSB Bank will help cut its exposure to riskier lending types as a proportion of its total credit portfolio, Fitch Ratings said Tuesday.The ratings agency placed Heartland's BBB long-term issuer default ratings on rating watch positive as it waits for the deal to progress.Heartland Bank's long-term ratings are driven by its viability rating, which is one notch lower than the implied viability rating of "bbb+" because of the lender's higher exposure to riskier lending compared with domestic peers, Fitch said.In addition to reducing its overall risk profile, the deal will more than double Heartland Bank's share of New Zealand banking system assets, help strengthen its asset quality, and boost its funding profile given TSB's stronger deposit mix and liquid asset holdings, Fitch said.However, it added that TSB has a structurally lower earnings profile than Heartland Bank, and "even with synergies we expect the combined bank's earnings to be lower than that of pre-acquisition HBL's through-the-cycle earnings."Shares of Heartland Group in Australia were nearly 12% higher in recent Tuesday trade. The company's New Zealand-listed shares climbed past 11%.

ASX:HGHNZE:HGH
Asia

Update: Heartland Group Holdings to Acquire TSB Bank for NZ$620 Million in Merger Deal; Shares Rise 12%

(Updates with the stock movement in the headline and last paragraph)Heartland Group Holdings (ASX:HGH, NZE:HGH) entered into a conditional merger implementation agreement to acquire TSB Bank from Toi Foundation for NZ$620 million, with the transaction to result in the merger of Heartland Bank and TSB into a new entity, TSB Heartland Bank, according to Tuesday filings with the Australian and New Zealand bourses.The aggregate consideration paid to Toi Foundation represents 76% of TSB's book value and comprises ordinary equity in Heartland giving Toi Foundation a 17.5% stake, a pre-completion cash dividend from TSB, a vendor loan to Heartland, and a Tier 2 capital subscription in Heartland Bank, per the filing.The company anticipates around NZ$34 million in annual pre-tax synergies once fully realized, which are expected to enhance earnings and support dividend growth prospects, the filing said.The transaction, expected to close in December, is still contingent on shareholder approval, regulatory approvals, and consultation with the Taranaki community, the filing added.Heartland's shares jumped 12% in recent Tuesday trade on the Australian bourse, while its shares on the New Zealand bourse gained 11%.

ASX:HGHNZE:HGH
Asia

Heartland Group Holdings to Acquire TSB Bank for NZ$620 Million in Merger Deal

Heartland Group Holdings (ASX:HGH, NZE:HGH) entered into a conditional merger implementation agreement to acquire TSB Bank from Toi Foundation for NZ$620 million, with the transaction to result in the merger of Heartland Bank and TSB into a new entity, TSB Heartland Bank, according to Tuesday filings with the Australian and New Zealand bourses.The aggregate consideration paid to Toi Foundation represents 76% of TSB's book value and comprises ordinary equity in Heartland giving Toi Foundation a 17.5% stake, a pre-completion cash dividend from TSB, a vendor loan to Heartland, and a Tier 2 capital subscription in Heartland Bank, per the filing.The company anticipates around NZ$34 million in annual pre-tax synergies once fully realized, which are expected to enhance earnings and support dividend growth prospects, the filing said.The transaction, expected to close in December, is still contingent on shareholder approval, regulatory approvals, and consultation with the Taranaki community, the filing added.

ASX:HGHNZE:HGH
Asia

Market Chatter: New Zealand Finance Minister Doesn't Want Banks to Pass Costs of Prudential Levy to Customers

New Zealand Finance Minister Nicola Willis said she would be "extremely disappointed" if the country's banks decide to pass on the costs of a new prudential levy to their customers, interest.co.nz reported Friday.The government is implementing a prudential levy on banks, non-bank deposit takers, insurers, and financial market infrastructure providers as part of its 2026 budget. The levy would support cost recovery for the central bank's statutory prudential functions and is expected to generate roughly NZ$209 million during the next four years, according to the report.The government believes revenue from the new levy would represent less than 1% of the aggregate profit of ANZ Group Holdings (ASX:ANZ, NZE:ANZ), Westpac Banking (ASX:WBC, NZE:WBC), Heartland Group Holdings (ASX:HGH, NZE:HGH), and Commonwealth Bank of Australia (ASX:CBA) unit ASB Bank."I would like to send them a very clear message: They are some of the most profitable banks in the world. Other counties around the world have these levies and you haven't seen it being passed through," Willis said in an interview with interest.co.nz.Westpac, Heartland, and Commonwealth Bank did not immediately respond to requests for comment from. ANZ deferred to the New Zealand Banking Association, which did not immediately reply to an email.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

ASX:ANZASX:CBAASX:HGHASX:WBCNZE:ANZNZE:HGHNZE:WBC
Asia

Heartland Group Holdings' Underlying Net Profit After Tax Rise in Fiscal Q3

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.

ASX:HGHNZE:HGH