Slides
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Investor Presentation 1Q2027 Trading Update For the quarter ended 30 September 2026
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2 Disclaimer Important notice The presentation and the briefing (together the Presentation) contain summary information only, which should not be relied on in isolation. The information in this presentation has been prepared with due care and attention, but its accuracy, correctness and completeness cannot be guaranteed. No person (including the Company and its directors, shareholders and employees) will be liable to any other person for any loss arising in connection with this presentation. No person is under any obligation to update this presentation at any time after its release or to provide further information about Heartland. This Presentation contains forward-looking statements and projections. Such statements involve known and unknown risks and uncertainties that may cause Heartland’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding Heartland’s present and future business strategies and the environment in which Heartland will operate in the future that may not prove to be accurate. The information in this presentation is general in nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes legal, financial, tax or other advice. Presentation of financial information The financial information presented in this document has been prepared in accordance with NZ GAAP, with any exceptional items disclosed where applicable. In particular, Heartland’s NPAT, ROE and CTI ratio are presented on a reported basis and excluding Proposed Transaction costs. It is expected that transaction costs relating to the Proposed Transaction of approximately $9.5m will be expensed and reflected in Heartland’s NPAT for FY2027, subject to the Proposed Transaction completing in FY2027. Review status All amounts are in New Zealand dollars unless otherwise indicated. Unless otherwise stated, financial data is as at 30 September 2026. It has not been audited or reviewed by any independent registered public accounting firm. This presentation has been prepared by Heartland Group Holdings Limited (NZX/ASX: HGH) (the Company or Heartland) for the purpose of briefings in relation to an update on 1Q2027 trading.
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3 3 1Q2027 summary Consolidated group key financial metrics 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidance5 NOI $89.6m $85.7m $90.1m $96.5m $93.4m No guidance provided OPEX $46.3m $48.2m $49.1m $46.9m $51.1m <$212m Impairment expense $7.0m $5.8m $10.8m $10.0m $6.7m No guidance provided NPAT excluding Proposed Transaction costs $26.7m $22.1m $21.4m $28.5m $25.5m ≥$102m Proposed Transaction costs6 - - - $5.5m $0.9m $9.5m Reported NPAT $26.7m $22.1m $21.4m $23.0m $24.5m No guidance provided Average NIM 3.89% 3.96% 4.06% 3.90% 3.92% >3.88% CTI ratio7 51.6% 56.2% 54.6% 48.6% 54.7% <55.7% Impairment expense ratio8 0.39% 0.31% 0.59% 0.52% 0.34% <0.32% ROE9 8.6% 6.9% 6.7% 7.4% 7.6% ≥7.5% Receivables7, 10 $7,250m $7,312m $7,585m $7,804m $7,876m 1. Taking into account the one-off impacts in 4Q2026 following Heartland Bank Australia’s Reverse Mortgage accounting change made in FY2026. See page 33 of Heartland’s FY2026 financial results IP for more information. 2. Rural includes Rural Relationship, Rural Direct and Livestock Finance. Excludes residual NSAs of $23.8m. 3. Motor Finance includes Motor Lending through Intermediary and Direct distribution channels, and Wholesale Lending. 4. Business Finance includes Asset Finance and Business Relationship. Excludes residual NSAs of $12.2m. 5. Heartland’s FY2027 guidance has been set using a FX rate of 1.2055, which is based on a published forecast from a New Zealand economist. Movements in FX rates contributed $0.1m to 1Q2027 NPAT. Excluding the impact of changes in FX, Receivables grew 1.7% (annualised). 6. Costs related to the Proposed Transaction. 7. 1Q2027 and FY2027 guidance CTI ratio excludes Proposed Transaction costs. Reported CTI ratio for 1Q2027 was 55.7%. 8. Impairment expense as a percentage of average Receivables. 9. 1Q2027 and FY2027 guidance ROE excludes Proposed Transaction costs. Reported ROE for 1Q2027 was 7.3%. 10. Receivables includes Reverse Mortgages and the impact from FX changes. • Average NIM, CTI ratio and impairment expense remain within expectations, with asset quality continuing to improve. • OPEX was stable, despite continued investment in Heartland Bank and Heartland Bank Australia’s technology transformation programmes. • Strong Reverse Mortgage growth continued in both New Zealand and Australia. • Heartland Bank’s Rural2, Motor Finance3 and Business Finance4 portfolios contracted due to: • a large Rural borrower changing its funding strategy • competitive and timing impacts in Motor Finance, primarily in the Wholesale Lending portfolio • subdued Business Finance credit demand amid challenging conditions. • Heartland Bank Australia’s Livestock Finance contracted in line with usual seasonality. • Proposed Transaction costs are tracking to expectations. • Heartland continues to target completion of the Proposed Transaction no earlier than December 2026, subject to satisfaction of all remaining conditions. Continued quarterly improvement in NPAT1 and ROE driven by strong Reverse Mortgage growth, stable operating expenses and improved asset quality.
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4 31.1 31.9 32.4 32.0 32.749.7% 56.1% 57.7% 57.4% 56.9% 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidanceOPEX CTI ratio 0.61% 0.39% 0.98% 0.71% 0.55% <0.48% 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidance NZ banking Average NIM Impairment expense ratio OPEX ($m) & CTI ratio Note: 1Q2027 results and FY2027 guidance are provided on a reported basis. 1. Including intercompany group charges. 2. Excluding intercompany group charges. 3. Receivables as at 30 September 2026 excludes $65m of residual NSAs. Including NSAs, Receivables as at 30 September 2026 were $4,510m. 4. Quarterly growth rates are annualised. 5. Rural includes Rural Relationship, Rural Direct and Livestock Finance. Excludes residual NSAs of $23.8m. Quarterly growth for Rural is affected by usual seasonal contractions. 6. Motor Finance includes Motor Lending through Intermediary and Direct distribution channels, and Wholesale Lending. 7. Business Finance includes Asset Finance and Business Relationship. Excludes residual NSAs of $12.2m. 8. Unsecured Lending includes Personal Lending and Open for Business which are winding down. Receivables3 as at 30 Sep 2026 $113m, 2.6% since 30 Sep 2025$4,444m Lending growth4 1Q26 2Q26 3Q26 4Q26 Receivables as at 30 Sep 2026 1Q27 FY2027 guidance Reverse Mortgages 14.0% 15.8% 15.1% 18.5% $1,488m $47m 12.9% >18.0% Rural5 -19.2% -0.7% 27.9% 36.8% $624m $51m -29.7% >5.0% Motor Finance 6 -2.5% -7.1% 9.9% 6.1% $1,684m $36m -8.3% >3.5% Business Finance 7 -22.8% -24.2% 0.0% -29.7% $615m $24m -14.6% <-7.5% Unsecured Lending 8 -39.9% -53.5% -38.4% -55.7% $34m $4m -43.5% N/A NPAT 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidance $17.1m $13.9m $8.2m $10.6m $12.2m >$48m 1 2 4.06% 4.12% 4.09% 4.09% 4.09% 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidance FY2026 Avg. 0.67% <58.4% < $135m FY2026 NIM Avg. 4.08% > 4.05%
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5 NZ banking: Impairment and provisioning Asset quality continued to improve • The total NPL ratio improved 5 bps from 30 June 2026 to 1.87% as at 30 September 2026. • Heartland Bank’s NPL ratio for its core lending portfolios (Reverse Mortgages, Motor Finance, Rural, and Business Finance) was stable, at 1.37% as at 30 September 2026, compared with 1.38% as at 30 June 2026. • Of the $6.3m of impairment expense in 1Q2027, $3.4m was for Motor Finance write-offs as Heartland Bank maintained Motor Finance NPLs below 180 DPD. Impairment expense ($m) Total provisions and coverage ($m) NPL ratios1 1. Total Bank NPL includes NSAs and Unsecured Lending (which includes Personal Lending and Open for Business which are winding down). Core Portfolio NPL includes Motor Finance, Rural, Business Finance and Reverse Mortgages. (2.8) (4.2) (0.8) (9.9) (0.2) 6.1 4.7 6.2 8.2 4.6 4.7 4.6 6.6 13.0 3.8 (1.0) (0.7) (1.1) (3.1) (2.0) 7.1 4.4 10.8 8.1 6.3 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 Collective provision expense Specific provision expense Write-offs Recovery 43.9 39.6 40.7 30.7 31.0 26.8 25.7 21.6 18.5 19.7 2.13% 2.09% 1.97% 1.60% 1.68% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Collective Provision Specific Provision Coverage Ratio 3.22% 3.04% 2.81% 1.92% 1.87% 2.36% 2.07% 2.06% 1.38% 1.37% 30-Sep-2025 31-Dec-2025 31-Mar-2026 30-Jun-2026 30-Sep-2026 Total Bank NPL Core Portfolio NPL
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6 NZ banking: Asset quality 1. Motor Finance includes Motor Lending through Intermediary and Direct distribution channels, and Wholesale Lending. 2. Rural includes Rural Relationship, Rural Direct, and Livestock Finance. Excludes residual NSAs of $23.8m. 3. Business Finance includes Asset Finance and Business Relationship. Excludes residual NSAs of $12.2m. Rural2 ($m) Motor Finance1 ($m) Business Finance3 ($m) Asset quality within Heartland Bank’s core lending portfolios continued to improve in 1Q2027. • Heartland Bank continued to maintain Motor Finance NPLs under 180 DPD. • Economic conditions remain challenging for businesses in sectors served by Heartland Bank’s Business Finance portfolio. Business Finance NPLs continue to be managed prudently, with the total value down $0.8m from 4Q2026. 2.6%, $19.4 1.7%, $11.8 2.3%, $16.1 1.1%, $6.9 1.7%, $10.6 1.3%, $9.8 1.6%, $11.4 1.6%, $11.0 2.0%, $12.8 1.5%, $9.0 4.4%, $32.0 4.2%, $29.0 4.1%, $28.5 3.9%, $25.1 4.0%, $24.4 33.9%, $20.8 33.0%, $17.3 33.5%, $18.6 30.4%, $13.6 32.4%, $14.2 8.3%, $61.2 7.6%, $52.2 8.1%, $55.6 7.0%, $44.8 7.2%, $44.0 NPLs Provisions NPLs Provisions NPLs Provisions NPLs Provisions NPLs Provisions 30-Sep-2025 31-Dec-2025 31-Mar-2026 30-Jun-2026 30-Sep-2026 Non-Performing, 90-179DPD Non-Performing, 180-364DPD Non-Performing, 365+DPD 0.3%, $1.6 0.1%, $0.8 0.5%, $2.9 0.1%, $0.5 0.5%, $0.7 0.1%, $0.8 0.2%, $0.8 0.1%, $0.8 0.4%, $3.4 0.6%, $3.6 0.5%, $2.8 0.5%, $3.3 0.5%, $3.3 22.5%, $1.3 24.2% $1.2 21.7%, $1.4 62.0%, $2.4 59.6%, $2.5 1.0%, $5.8 0.9%, $5.1 1.1%, $6.5 0.6%, $3.9 0.7%, $4.1 NPLs Provisions NPLs Provisions NPLs Provisions NPLs Provisions NPLs Provisions 30-Sep-2025 31-Dec-2025 31-Mar-2026 30-Jun-2026 30-Sep-2026 Non-Performing, 90-179DPD Non-Performing, 180-364DPD Non-Performing, 365+DPD 1.3%, $22.0 1.3%, $19.1 1.1%, $19.0 0.7%, $11.9 0.7%, $11.7 0.6%, $9.8 0.6%, $8.9 0.4%, $7.3 26.0% , $8.4 27.8%, $7.9 28.4%, $7.6 29.0%, $3.5 30.1%, $3.5 1.9%, $32.3 1.7%, $28.0 1.6%, $26.4 0.7%, $11.9 0.7%, $11.7 NPLs Provisions NPLs Provisions NPLs Provisions NPLs Provisions NPLs Provisions 30-Sep-2025 31-Dec-2025 31-Mar-2026 30-Jun-2026 30-Sep-2026 Non-Performing, 90-179DPD Non-Performing, 180-364DPD Non-Performing, 365+DPD
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7 13.8 14.1 14.2 12.6 15.3 49.5% 53.5% 44.8% 34.5% 46.4% 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidanceOPEX CTI ratio FY2026 NIM Avg. 3.74% 3.09% 2.26% 1.99% 1.77% 1.78% -0.01% 0.20% -0.01% 0.24% 0.05% <0.10% 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidanceNPL ratio Impairment expense ratio AU banking Average NIM Asset quality OPEX (AU$m) & CTI ratio Note: 1Q2027 results and FY2027 guidance are provided on a reported basis. All figures on this page are in AUD. 1. Heartland Bank Australia’s 4Q2026 result was impacted by an update to the accounting methodology used to recognise Reverse Mortgage intermediary commission costs. See page 33 of Heartland’s FY2026 financial results IP for more information. 2. Including intercompany group charges . 3. Excluding intercompany group charges. 4. Receivables as at 30 September 2026 includes AU$14m of Other AU lending (which includes Home Loans and Consumer & Other loan portfolios acquired through the authorised deposit-taking institution) which are in run down. 5. Quarterly growth rates are annualised growth. 6. Quarterly growth for Livestock Finance is affected by usual seasonal contractions. NPAT 1Q2026 2Q2026 3Q2026 4Q20261 1Q2027 FY2027 guidance AU$9.1m AU$7.6m AU$11.5m AU$14.8m AU$11.3m >AU$46m Lending growth5 1Q26 2Q26 3Q26 4Q26 Receivables as at 30 Sep 2026 1Q27 FY2027 guidance Reverse Mortgages 17.2% 19.6% 17.9% 18.9% $2,488m $117m 19.6% >20.0% Livestock Finance 6 -34.7% 70.7% -38.9% 4.6% $228m $21m -33.8% >10.0% Receivables4 as at 30 Sep 2026 AU$407m, 17.5% since 30 Sep 2025AU$2,730m 2 3 <47.2% < $65m 3.62% 3.74% 4.00% 3.63% 3.72% 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidance > 3.68% FY2026 impairment expense ratio Avg. 0.11% 1 1
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Additional information
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9 Key financial metrics: NZ banking and AU banking NZ Banking 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 FY2027 guidance NOI $60.7m $56.3m $54.6m $54.2m $55.6m No guidance provided OPEX1 $31.1m $31.9m $32.4m $32.0m $32.7m <$135m Impairment expense $7.1m $4.4m $10.8m $8.1m $6.3m No guidance provided NPAT $17.1m $13.9m $8.2m $10.6m $12.2m >$48m Average NIM 4.06% 4.12% 4.09% 4.09% 4.09% >4.05% CTI ratio2 49.7% 56.1% 57.7% 57.4% 56.9% <58.4% Impairment expense ratio 0.61% 0.39% 0.98% 0.71% 0.55% <0.48% ROE 9.3% 7.5% 4.5% 5.8% 6.7% >6.3% Receivables3 $4,598m $4,456m $4,546m $4,589m $4,510m Note: 1Q2027 results and FY2027 guidance are provided on a reported basis. 1. Including intercompany group charges. 2. Excluding intercompany group charges. 3. Receivables includes Reverse Mortgages. 4. Heartland Bank Australia’s 4Q2026 result was impacted by an update to the accounting methodology used to recognise Reverse Mortgage intermediary commission costs. See page 33 of Heartland’s FY2026 financial results IP for more information. 5. Heartland’s FY2027 guidance has been set using a FX rate of 1.2055, which is based on a published forecast from a New Zealand economist. AU Banking ($AUD) 1Q2026 2Q2026 3Q2026 4Q2026 1Q20274 FY2027 guidance5 NOI $26.8m $26.2m $30.6m $35.3m $31.9m No guidance provided OPEX1 $13.8m $14.1m $14.2m $12.6m $15.3m <AU$65m Impairment expense ($0.1m) $1.2m ($0.1m) $1.5m $0.3m No guidance provided NPAT $9.1m $7.6m $11.5m $14.8m $11.3m >AU$46m Average NIM 3.62% 3.74% 4.00% 3.63% 3.72% >3.68% CTI ratio2 49.5% 53.5% 44.8% 34.5% 46.4% <47.2% Impairment expense ratio (0.01%) 0.20% (0.01%) 0.24% 0.05% <0.10% ROE 8.4% 6.9% 10.5% 12.9% 9.5% >9.3% Receivables3 $2,323m $2,464m $2,531m $2,638m $2,730m
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10 Motor Finance arrears vs. auto industry average Note: • For the purpose of this comparison, Heartland Bank’s total Motor Finance arrears are calculated using the calculation method used by Centrix (arrears greater than or equal to 14 DPD). • Auto industry arrears are sourced from the Centrix Credit Indicator Report, where 31/12/2024, 31/03/2025, 30/06/2025, 30/09/2025, 31/12/2025, 31/03/2026, 30/06/2026, 31/08/2026 uses the January, April, July, October 2025, and January, April , July and September 2026 Insights Reports, respectively. • The 30/09/2026 Centrix Motor Arrears metric is not yet available, thereby, only Heartland Bank’ s metrics have been provided. • Consumer Motor are Motor Finance loans to individuals rather than businesses. 5.4% 5.4% 5.1% 5.8% 5.6% 5.2% 5.4% 6.3% 5.9% 5.2% 4.6% 4.5% 4.0% 3.0% 3.0% 3.2% 6.1% 5.8% 5.0% 4.3% 4.2% 3.7% 2.8% 2.6% 2.8% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 31/12/2024 31/03/2025 30/06/2025 30/09/2025 31/12/2025 31/03/2026 30/06/2026 31/08/2026 30/09/2026 Market Arrears (Centrix Market Report) Total Motor (HBL) Consumer Motor (HBL)
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11 CTI ratio Cost-to-income ratio OPEX Operating expenses DPD Days past due Proposed Transaction The proposed acquisition by Heartland of all TSB shares on issue from Toi Foundation, and subsequent merger of Heartland Bank and TSB Bank Limited FX Foreign currency exchange Receivables Gross Finance Receivables (includes Reverse Mortgages) Heartland, Heartland Group, HGH Heartland Group Holdings Limited or the Company ROE Return on Equity Heartland Bank, HBL, NZ Banking Heartland Bank Limited FY2027 Financial year ending 30 June 2027 (1 July 2026 to 30 June 2027) Heartland Bank Australia, HBAL, AU banking Heartland Bank Australia Limited 1Q27, 1Q2027 First quarter of FY2027 (1 July 2026 to 30 September 2026) NIM Net interest margin FY2026 Financial year ended 30 June 2026 (1 July 2025 to 30 June 2026) NOI Net operating income 4Q26, 4Q2026 Fourth quarter of FY2026 ( 1 April to 30 June 2026) NPAT Net profit after tax 3Q26, 3Q2026 Third quarter of FY2026 (1 January to 31 March 2026) NPL Non-performing loan 2Q26, 2Q2026 Second quarter of FY2026 (1 October to 31 December 2025) NSA Non-strategic assets 1Q26, 1Q2026 First quarter of FY2026 ( 1 July to 30 September 2025) Glossary
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Investor information For more information heartlandgroup.info/investor-information Investor & media relations Nicola Foley Head of Corporate Communications & Investor Relations +64 27 345 6809 nicola.foley@heartland.co.nz