o Increased costs associated with investment in: • Awareness for O4B and reverse mortgages in both Australia and New Zealand. • Capacity and processing volume to meet growing demand and opportunities in core strategic areas. • Finance and Compliance reflecting increased regulatory complexity and heightened and demands.
o Many of these costs are accelerated or one-off and will generate asset growth and income in ensuing years.
o Accordingly, we expect the cost to income ratio increase to 41.9%, before reverting to its current trajectory.
o Heartland expects net profit after tax for the year ending 30 June 2020 to be in the range of $77 million to $80 million.