Heartland Bank profit rises 13% in Sept. quarter as interest income increases

Heartland Bank, the banking subsidiary of NZX-listed Heartland New Zealand, reported a 13 percent increase in profit in the three months to Sept. 30 on an increase in interest income while borrowing costs fell.

Profit was $9.8 million in the latest quarter, from 8.67 million a year earlier, according to the lender's disclosure statement. Interest income rose to $52 million from$50.6 million, while interest expenses fell to $23 million from about $26 million.

Net profit for Heartland New Zealand was $11 million, including the contribution from its recently acquired Australian Seniors Finance home equity release businesses, which are currently held outside of the banking unit, it said.

Total assets of Heartland Bank were $2.45 billion, up from $2.4 billion a year earlier. Liabilities rose to $2.09 billion from $2.04 billion.

Heartland New Zealand shares last traded at $1.10 and have climbed 29 percent this year.