TSB Heartland to become NZ's sixth largest home loan provider

The merged bank will be renamed TSB Heartland Bank and it will have the sixth largest mortgage book in New Zealand after Kiwibank's $31.36 billion book.

Heartland had tried to create its own home loan portfolio in March 2020 with an online only and owner-occupier only offering but the launch was stymied by the beginning of the Covid pandemic and the offering was relaunced in October 2020.

But when Heartland reported its results in early 2025 it said it had decided to give up on the product which appears to have peaked at $328.6 million in the December 2023 half year.

Heartland’s latest results for the December 2025 half year showed home loans were down to $70.5 million and Heartland’s presentation of the TSB merger proposal shows it expects to have largely realised the rundown of its non-strategic assets by June 30.