Relieved to be rid of it, financial services group Challenger has minimised insight into the final phase of its ownership its troubled bank in the firm’s June 2024 full year results.

New Zealand-based bank Heartland completed its takeover of Challenger Bank at the end of Aril, and have since set the bank – now known  as Heartland Bank Australia – on a new course.

Treating the bank, fairly, as a discontinued operation, the Challenger financials report no net interest income or other income, or impairments.

The firm did disclose $17 million in expenses from the derecognition and sale of the bank.

In FY2023 the bank incurred an EBIT loss of $8.8 million.

In FY2024, the bank incurred a net loss after tax of $4 million, on a statutory basis.

“The sale of the Bank generated a pre-tax net gain on sale of approximately $11 million, and approximately $65 million of capital has been injected back into Challenger Life.”

There was a net gain from the sale of the bank to Heartland of $11 million.