Heartland gains approval for Challenger Bank acquisition

Heartland Group Holdings Limited (Heartland) has announced that it has received indicative regulatory approvals from the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of New Zealand (RBNZ) to acquire Challenger Bank Limited from Challenger Limited (ASX: CGF).

The acquisition is still subject to the receipt of final regulatory approvals. Heartland stated it expects the acquisition of Challenger Bank to be completed on 30 April 2024.

Upon completion, the acquisition will mark the first New Zealand registered bank to acquire an Australian authorised deposit-taking institution (ADI) and is part of a “critical step” in Heartland’s strategy to expand into the Australian market.

Under Heartland’s ownership, Challenger Bank will be rebranded to Heartland Bank Australia. According to the bank, once the rebranding is complete, it will be the only specialist bank provider of both reverse mortgages and livestock finance in Australia.

CEO to step down

At the same time, Heartland confirmed that its CEO Jeff Greenslade announced his intention to step down from his role at the end of the 2024 calendar year.

Greenslade has been with Heartland for 15 years, having joined as CEO of the bank’s predecessor MARAC Finance in 2009.

According to the bank, Greenslade led Heartland through several milestones including its formation in 2011 through the merger of Canterbury Building Society, MARAC Finance, Southern Cross Building Society, and PGG Wrightson Finance.

Greg Tomlinson, Heartland’s board chair, commented on Greenslade’s eventual departure from the bank: “As one of Heartland’s founders, Jeff’s contribution to the business and our shareholders has been outstanding.

“This is evident in the substantial growth Heartland has achieved in just over 10 years since its formation.

“For our customers, Jeff has instilled in Heartland a culture and commitment to making it as easy as possible for customers to apply for a loan, open a savings or deposit account, and manage their finances. Digitalisation and automation of products, platforms and processes has become a core strategic focus of Heartland’s.

“Importantly, for our people, Jeff has been a real advocate and champion for Heartland’s commitment to diversity and inclusion.”

Greenslade’s focus for the rest of the year will be guaranteeing the successful completion and integration of the Challenger Bank acquisition.

“Jeff has been the driving force of this acquisition, and the Board is confident that he will leave Heartland well positioned for growth,” Tomlinson added.

[RELATED: Reverse mortgage lender eyes Australia’s ageing population]