An update on the proposed merger of TSB and Heartland Bank

If Heartland Group Holdings Ltd shareholders approve the proposal and the required regulatory approvals are received, the legal merger is targeted to take place on or after 1 December 2026.

The legal merger is expected to take place on or after 1 December 2026, when TSB and Heartland Bank would formally amalgamate to become a single legal entity.

There would be no immediate changes for customers at that time. You would continue banking with us as you do today. Any changes to products, services or the way you bank with us would happen gradually over time, and we'd let you know well in advance before any changes affected you.  

No. While TSB and Heartland would each become part of one bank, TSB Heartland Bank Limited, there are no immediate changes planned to the TSB brand. You’ll continue to bank with TSB as you do today. If that changes in the future, we’ll let you know as soon as we can.

No. Heartland Bank New Zealand is part of Heartland Group Holdings Limited, a New Zealand-based financial services group listed on both the NZX and ASX. 

In 2024, Heartland Bank became the first New Zealand registered bank to acquire an Australian bank, which now operates as Heartland Bank Australia. So rather than an Australian bank owning Heartland in New Zealand, the group has actually expanded from New Zealand into Australia.  

Yes. If the proposed merger proceeds, TSB Heartland Bank will remain a majority New Zealand-owned bank. 

The combined bank will continue to be: 

• headquartered in New Zealand  
• led and governed from New Zealand  
• focused on serving New Zealand customers and communities  
• more than 90% owned by New Zealand shareholders.  

While the merged bank would be listed on both the New Zealand and Australian stock exchanges, being listed doesn't determine where a company is owned. Listed companies have many shareholders. What matters is where the majority of ownership sits, where decisions are made, and who the organisation serves. 

TSB Heartland Bank would remain a New Zealand bank with deep regional roots, continuing to invest in New Zealand customers and communities. 

The proposal involves TSB merging with Heartland Bank to create a new combined bank, proposed to be called TSB Heartland Bank. 

As part of that proposal, Toi Foundation would sell its ownership of TSB and become a significant shareholder in Heartland Group Holdings Ltd which will own the proposed merged bank.

This is different from a traditional sale, where the previous owner exits completely. Under the proposal, Toi Foundation would remain invested in the future of the combined bank as one of its major shareholders. 

No. One of the key intentions of the proposed merger is to retain a strong presence in Taranaki. 

If the proposal proceeds, the intention is to: 

• retain TSB's branch network in Taranaki (and nationally) 
• keep our Customer Engagement Centre in Taranaki  
• maintain Taranaki as a key operational hub for customer-facing banking services  
• retain the TSB name as part of the proposed merged bank, TSB Heartland Bank.  

TSB has proudly served Taranaki for generations, and that commitment remains unchanged. We'll also continue supporting customers and communities right across New Zealand. 

Ultimately, regardless of the outcome, TSB is in a strong position today.

Before this merger was being considered, TSB already had a clear strategy and business plan in place. That plan has been approved by the Board, and we are already delivering against it. Our focus remains on serving our customers well, strengthening the bank, growing sustainably, and continuing to deliver for our shareholder and communities.

Our ambition is to build a stronger New Zealand bank that can invest more for the benefit of our customers. 

Over time, this will mean: 

• more investment in technology, digital banking and fraud protection
• access to a broader range of products and services 
• a stronger Toi Foundation through its ongoing connection with the merged bank which means it’ll be able to further its investment in the Taranaki region. 

Plus, as the parent company Heartland Group Holdings Limited is listed on the New Zealand Stock Exchange (NZX). New Zealanders, including our customers, would have the opportunity to become shareholders in a company that owns the combined bank and share in its future success. This is not financial advice or an investment recommendation. Please see a professional adviser.