Heartland Bank Australia’s “transition from wholesale funding to retail deposit funding continues to progress successfully and remains on track to be largely complete by 30 June 2025” NZ-based Heartland Group said yesterday. 

As at October 2024, Heartland Bank Australia was 57 per cent funded by retail deposits, “providing the bank with the flexibility to be more competitive in the markets within which it operates” the group said in a trading update.

“Retail deposit flow and cost continue to track well, with greater direct-to-bank business being attracted.” 

A new high interest online savings product is planned for release in the second half of FY2025, the bank said. 

Heartland Bank Australia is the former Challenger Bank, which Heartland Group acquired in July.

Reverse Mortgages “have performed well”, with annualised growth of 14.5 per cent during YTD2025. 

“Strong ongoing demand continues to be driven by Australia’s ageing population. A focus on process efficiency and an investment in resourcing will increase Heartland Bank Australia’s ability to meet this demand and contribute to further growth in this portfolio.”

In YTD2025, Heartland said its Australian bank “has more than halved its time to originate loans, with further reductions expected over the coming year.”

Livestock Finance (provided under the StockCo brand) “retraced in YTD2025, down 8.1per cent, excluding the A$12 million repayment of a large non-performing loan in full. 

October and November 2024 saw a significant return in confidence across many regions. In November 2024, StockCo experienced its largest volume of sheep and lambs funded since October 2022.

“The increase in market confidence will be supported by product development and distribution network expansion, leading to portfolio growth in FY2025.”