Heartland becomes NZ’s 22nd bank
(17 December 2012 – New Zealand) Heartland, the successor to Marac Finance has been granted a banking registration by the Reserve Bank of New Zealand (RBNZ).
Heartland will be the 22nd bank in New Zealand; it was formed in January 2011 from the merging of Marac Finance with two building societies; CBS Canterbury and Southern Cross Building Society.
Gaining a banking licence is a milestone in the strategy launched three years ago to save Marac Finance.
In mid-2009, like most other New Zealand finance companies, Marac Finance found itself with many bad loans totalling NZ$180 million (A$144 million) most of them property loans.
The parent company Pyne Gould Corporation (PGC) launched a NZ$272 million capital raising in late 2009, a good chunk of which was injected in Marac Finance and the following year, PGC, CBS and Southern Cross started talking about a merger.
In mid 2011 PGC distributed its 72 percent stake in Heartland to its shareholders but a couple of months later bought shares again in Heartland in a capital raising the helped Heartland purchase the finance arm of PGG Wrightson in late August 2011.
PGC sold out of Heartland this year.
Heartland said it had now achieved its goal of becoming the only New Zealand operated, controlled and managed banking group, with a parent company listed on the NZX main board.
Chairman Bruce Irvine said 'it has been my pleasure to be part of this Heartland journey, and we can be extremely proud of all that has been accomplished.
'I would like to thank our loyal HNZ Shareholders and Heartland depositors. We look forward to delivering on the promise of being a successful New Zealand listed bank that will support the productive sectors of the New Zealand economy over the long term.'
Gaining a banking licence is a milestone in the strategy launched three years ago to save Marac Finance.
In mid-2009, like most other New Zealand finance companies, Marac Finance found itself with many bad loans totalling NZ$180 million (A$144 million) most of them property loans.
The parent company Pyne Gould Corporation (PGC) launched a NZ$272 million capital raising in late 2009, a good chunk of which was injected in Marac Finance and the following year, PGC, CBS and Southern Cross started talking about a merger.
In mid 2011 PGC distributed its 72 percent stake in Heartland to its shareholders but a couple of months later bought shares again in Heartland in a capital raising the helped Heartland purchase the finance arm of PGG Wrightson in late August 2011.
PGC sold out of Heartland this year.
Heartland said it had now achieved its goal of becoming the only New Zealand operated, controlled and managed banking group, with a parent company listed on the NZX main board.
Chairman Bruce Irvine said 'it has been my pleasure to be part of this Heartland journey, and we can be extremely proud of all that has been accomplished.
'I would like to thank our loyal HNZ Shareholders and Heartland depositors. We look forward to delivering on the promise of being a successful New Zealand listed bank that will support the productive sectors of the New Zealand economy over the long term.'
Subscribe