Reserve Bank gives thumbs up to Heartland licence

The Reserve Bank has approved Heartland New Zealand's application to be a licensed bank, ending a long wait for the lender.

The central bank says Heartland has become New Zealand's 22nd registered bank.

Securing a banking licence has been a key plank of Heartland's strategy in a shift away from a new regulatory regime that imposed stricter conditions on non-bank financial institutions.

"Heartland, as a bank, needs to retain the advantages of being small: local and accessible, at all times seeking to be innovative," Heartland chief executive Jeff Greenslade says in a statement.

Shares in Heartland rose 3c following this morning's announcement and are trading at 70c on the NZX.

Last month Heartland had its investment grade BBB- credit rating affirmed with a stable outlook by Standard & Poor's, which cited the lender's strength as very strong capital and earnings assessment, good geographic and business diversity, and sticking to its timeline for its post-merger plan.

Heartland had been hoping to update shareholders on its strategy as a fully-fledged bank at the annual meeting on November 30, and give them "greater comfort that the outcome on bank registration can be meaningfully addressed at the meeting."

Its expectation of a November decision was based on the customary pace for New Zealand incorporated applicants.

(BusinessDesk)

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1 Comment & Question

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Let me be the first them to say well done to the team at Heartland.

Funny that the comments are so few when it's positive news......... I guess some just enjoy being glass half empty sort of people.

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NZ Market Snapshot

Forex

Sym Price Change
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AUD 0.9165 0.0017 0.19%
EUR 0.6283 0.0007 0.11%
GBP 0.4988 0.0006 0.12%
HKD 6.0782 0.0052 0.09%
JPY 92.3020 0.0440 0.05%

Commods

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Gold Index 1197.1 1.400 2014-11-25T00:
Oil Brent 80.1 -0.140 2014-11-25T00:
Oil Nymex 74.1 -1.660 2014-11-25T00:
Silver Index 16.6 0.170 2014-11-25T00:

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NZX 50 5442.7 5465.6 5442.7 0.27%
NASDAQ 4762.4 4774.5 4754.9 0.07%
DAX 9894.6 9942.7 9861.2 0.33%
DJI 17819.0 17854.7 17817.9 -0.02%
FTSE 6731.1 6765.0 6731.1 0.24%
HKSE 23833.2 24176.6 23843.9 1.12%
NI225 17348.0 17432.6 17407.6 -0.14%