Heartland Bank reveals profit rise and growth in reverse mortgages
Thursday, 26 February 2026
Heartland Bank announced a net profit after tax of $48.8 million for the six months to the end of December - with a little help from its new brand ambassador, former TV personality Judy Bailey.
It’s a big improvement for the dual New Zealand NZX and Australian ASX sharemarket-listed company.
In the corresponding six-month period in 2024, it posted an after-tax profit of just $3.6m.
Heartland has repositioned itself as a specialist bank in New Zealand with a focus on three core areas: reverse mortgages, auto finance and business lending.
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Reverse mortgages allow homeowners over the age of 60 to borrow against the equity in their homes, with interest (currently 7.75% floating) on the debt being capitalised, and the whole loan paid back when homeowners finally come to sell.
Homeowners use the money to do things like pay for operations, replacing cars, holidays, maintenance around their homes, and supplementing their retirement incomes.
The bank said its reverse mortgage portfolio in New Zealand had increased by 15.2% in the six-month period to $1.33b, and its new retirement village “access” loans were gaining traction.
The bank had launched an advertising campaign to lift awareness of reverse mortgages, and had hired Judy Bailey as its brand ambassador.
Bailey was quoted in Heartland’s publicity material released with its half-year profits.
“Retirement can be a tricky time for a lot of people. My generation was always told work hard, save hard to own your own home, if you’re lucky enough to have some savings, all to the good – but superannuation will have your back,” she said.
“Today, that’s so often not the case. So many people are asset rich and cash poor. Retirement can be expensive, costs come out of left field,” she is quoted as saying in the Heartland announcement collateral.
Bailey has just published a book on ageing called Evolving.
Hiring older stars to promote reverse mortgages is a phenomenon seen overseas. In the US, former Magnum PI actor Tom Selleck is the face of American Advisers Group, which sells reverse mortgages.
In contrast to its reverse mortgage business, Heartland’s vehicle finance portfolio of loans had declined by 4.8%, but that was the result of a strategic shift towards higher-quality partners, with a focus on quality used, and franchise vehicles.
Heartland’s New Zealand business lending also decreased. It said that was due to “subdued demand” from ongoing economic challenges across some industries, as well as it being “disciplined” on risk.
The bank was also investing in technology programmes to support scalable growth and modernise and simplify its systems.
Part of the bank’s turnaround has been exiting certain activities that it now no longer considers core to its growth. That included its rural lending book, and competing for ordinary home loans.