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HEARTLAND GROUP NZX / ASX Release Heartland announces net profit after tax of $ 44.1 million for the six months ended 31 December 2020 ( or $ 43.2 million on an underlying basis after removing the impacts of one - offs ) 22 February 2021 Heartland Group Holdings Limited ( Heartland ) ( NZX / ASX : HGH ) achieved a net profit after tax ( NPAT ) of $ 44.1 million for the six - month period ended 31 December 2020 ( 1H2021 ) , an increase of $ 4.2 million ( 10.6 % ) compared with the six - month period ended 31 December 2019 ( 1H2020 ) . On an underlying basis ( which excludes the impacts of one - offs¹ ) , 1H2021 NPAT was $ 43.2 million , an increase of $ 5.1 million ( 13.4 % ) compared with 1H2020 underlying NPAT . Highlights for 1H20212 - - - NPAT of $ 44.1 million , up 10.6 % ( $ 4.2 million ) . Underlying NPAT of $ 43.2 million , up 13.4 % ( $ 5.1 million ) on 1H2020 underlying NPAT . One - off items had a $ 0.9 million net impact on NPAT , consisting of $ 5.2 million of one - off gains and $ 4.3 million of one - off expenses.³ Gross finance receivables of $ 4.7 billion , up 2.7 % 5 ( $ 62.3 million ) . Return on equity of 12.2 % , up 54 basis points . Net interest margin of 4.28 % , up 5 basis points . Net operating income of $ 125.3 million , up 5.6 % . Cost to income ratio of 48.8 % , up 2.8 percentage points . Underlying cost to income ratio of 45.9 % , up 0.8 percentage points . Impairment expense as a percentage of average receivables decreased from 0.40 % in 1H2020 to 0.19 % in 1H2021 . FY2021 interim dividend of 4.0 cents per share , a decrease of 0.5 cents per share from 1H2020 ( as a result of Reserve Bank of New Zealand restrictions on distributions by banks ) . Earnings per share of 7.6 cents per share , up 0.7 cents per share . In October 2020 , Heartland Bank Limited was one of two Australasian banks to have no reduction or adverse change to its ratings or outlook by Fitch Ratings since January 2020 . $ 5.2 million fair value gain recognised in Harmoney , which is currently transitioning its funding model from peer - to - peer funding to wholesale securitised funding via warehouse structures . Reverse Mortgages awarded Consumer Trusted Accreditation for the fourth year in a row . Heartland Bank Limited awarded Canstar awards for savings accounts for consecutive years . Further digitalisation of product applications and digital platforms – including digital Home Loans , Sheep & Beef Direct online loans , and a self - service online vehicle loan application . 45 participants in the 2020/2021 Manawa Ako internship programme , up from 34 in 2019/2020 . Launch of Rocket , a mobile - led financial literacy programme for school leavers . 1 Underlying results exclude the impacts of one - offs . Refer to Profitability section on page 3 for details . 2 All financial performance comparatives are based on the 31 December 2019 unaudited interim consolidated financial statements of Heartland and its subsidiaries ( the Group ) , and financial position comparatives are based on 30 June 2020 audited full year consolidated financial statements of the Group , unless otherwise noted . 3 Refer to Profitability section on page 3 for details . 4 Gross finance receivables include Reverse Mortgages . 5 Annualised 1H2021 growth excluding the impact of changes in foreign currency exchange ( FX ) rates . 6 Net interest margin ( NIM ) is calculated based on average gross interest earning assets . 1