Can Heartland succeed in Oz where so many NZ companies have failed?

Kapiti Coast financial adviser Chris Lee is blaming the sharp decline in Heartland Group's share price on the failure of the Australian authorities to grant it a banking licence after it took over the small Australian bank, Challenger.

Heartland agreed to buy Challenger back in October 2022 and is hoping to use it as the vehicle to mirror its success in the New Zealand market.

Heartland had been hoping to get its Australian banking licence by Christmas and is now hoping it will be granted before June 30.

“That delay has the potential to stifle the impressive growth Heartland has achieved in Australia,” Lee wrote in his regular newsletter to clients, adding that there isn't any timetable for the Australian Prudential Regulation Authority (APRA) to give its approval.

“For Heartland to resume its impressive growth in lending sectors in Australia, where its progress has been excellent, requires the Aussies to welcome the purchase of one of its small banks by a NZ bank,” Lee said.