Reflecting weak loan demand in the banking market over the past year, Heritage Bank yesterday reported a fall of 2.4 per cent in earnings for the year to June.Heritage issued a media release with some unaudited figures for the 2011/12 year: net profit was A$31.27 million; assets increased by 2.2 per cent, to $8.2 billion; and loan approvals increased by 5.6 per cent.Heritage's chief executive, John Minz, said in the statement that lending volume picked up in the June half. The bank wrote $569 million of loans in the December half and $866 million in the second half.Retail deposits increased by 9.7 per cent - almost twice the rate of loan growth.The bank completed a successful issue of retail bonds in June, raising $227.5 million.Minz said a feature of the bank's performance was its low arrears rate. At June 30, 0.47 per cent of the bank's mortgages were 30 days or more in arrears.In December, Heritage changed its name from Heritage Building Society to Heritage Bank. Minz said the change was achieved "seamlessly".