Would-be bank Heartland has announced a special dividend of 1.5c a share for shareholders, its first dividend since it was formed nearly two years ago.

Heartland, a lender to the rural, businesses and consumer markets, was formed in January 2011 from the merger of Marac Finance with two building societies.

Heartland's shares rose 2 cents to 70c today.

The special dividend announcement came this afternoon at its annual meeting, held in Ashburton, where CBS Canterbury, one of the building societies was based.

Heartland is hoping to secure by the end of the year a banking licence from the Reserve Bank.

It had delayed it annual meeting a month until today in the hope it would have been granted bank registration by now but this week said it expected to know before Christmas.

Heartland announced it had also adopted a dividend policy.

It said dividends would be based on its net profit after tax, subject to maintaining a prudent level of capital for its needs.

Heartland's capital needs would vary from time to time, depending on a range of factors including regulatory and credit rating requirements, general economic conditions, current and expected growth and the mix of business.

The special dividend would be paid on December 21 to shareholders on the company's register at 5pm on December 14.

The dividend is fully imputed.

- © Fairfax NZ News