Heartland Completes Challenger Bank Acquisition
(1 May 2024 – Australia) New Zealand’s Heartland Group Holdings has completed its long-awaited acquisition of Challenger Bank in Australia
The acquisition of an Australian bank by a New Zealand registered bank is the first of its kind and marks a major milestone for the group in its Australia growth strategy. As of 1 May 2024, the bank will begin trading as Heartland Bank Australia and offer Heartland’s existing products that consist of Reverse Mortgages and Livestock Trading Finance, alongside an existing term deposit book.
The move has allowed Heartland to amalgamate its existing Australian businesses, Heartland Finance which offers Reverse Mortgages, and StockCo which offers Livestock Finance, under the umbrella of a registered bank, and now forms approximately the 72nd largest bank in Australia by assets, with approximately A$2.3 billion in total assets having switched its acquisition focus from Avenue to Challenger in 2022.
Chris Flood, currently Deputy CEO of Heartland Group Holdings, has been appointed as Acting CEO of the Australian entity until 22 July 2024, when Michelle Winzer takes over in the role. Michelle is currently CEO of RACQ and has held Senior roles with CBA and was previously CEO of Bank of Melbourne.
In an announcement to the NZX and ASX, Heartland indicated it could also venture into Auto and Asset Finance in Australia where the group offers a deep pool of expertise from its history in New Zealand.
“The bank has a unique opportunity to deliver specialist banking products to areas of the Australian market under-serviced by larger banks. Heartland has a history of success with these products in New Zealand and considers these sectors to be under-serviced by larger banks in Australia. The acquisition is a critical step in Heartland’s strategy for achieving its long-term growth ambitions and expansion in the Australian market, where it is already well-established” commented Heartland Bank Australia Chair Geoff Summerhayes.
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