Heartland Bank posted a 10 per cent gain in nine-month profit while delaying a planned return to shareholders, saying market volatility had created opportunities for acquisitions which may be a better use of its capital.
Heartland affirmed its guidance for profit of $51 million to $55 million for the year ending June 30, up from $36 million in 2015.
In December, Heartland told shareholders the bank was keen on expanding its consumer finance business with a particular focus on distribution channels or new technologies, but in the absence of any compelling options, would return capital to shareholders.
The Auckland-based lender's investors voted to simplify the company's structure by amalgamating its businesses into one unit, issue up to $75 million of tier 2 capital instrument, and return as much as $100 million to shareholders.
Heartland shares last traded at $1.17 and have declined 9.3 per cent in the past 12 months while the NZX 50 Index gained 21 per cent.
