Some random thoughts on this stuff
See Slide 11 of the recent acquisition presentation
Heartland New Zealand Limited, known to its friends and shareholders as HNZ, is not a bank, but it does own one (via a not shown intermediary company).
This new HER stuff will exist outside of the bank and its subsidiaries, at least initially.
HNZ purchased $30M5 of NZ HER Loans in December 2013 (footnote on slide 9 & 14) which should thus be in the Dec 2013 half year accounts for HNZ due to be released soon, but may not be obvious.
It is unlikely that the HER Loans will appear anywhere in the Dec 2013 Disclosure Statement for Heartland Bank, as presumably they are not held by the banking group.
Once HER Loans are brought into the banking group we will find what the Risk Weighting of such assets is and thus what capital backing they need.
The future guidance suggests that this years result will be at the lower end of that $34M to $37M range.
I am not at all sure that I understand the rational for buying the Australian bit.
Best Wishes
Paper Tiger