In This Article:
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Underlying NPAT: $7.5 million, in line with the first half of FY24.
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Revenue Growth: Increased by 1.6%.
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Net Interest Margin (NIM): Average NIM of 1.45%, steady on both the prior half and the first half of FY24.
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Total Capital Ratio: Increased by 60 basis points to 17%.
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Home Loan Book: Increased 0.3% to $8 billion.
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Interim Dividend: $0.105 per share, payout ratio of 77% on a MergeCo underlying pro forma basis.
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Wealth Management Income: Rose by 6.1%.
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TPT Wealth Revenue: Increased to $7.2 million.
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Customer Deposits: Improved to 69.7% of the funding mix.
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90-Day Arrears: 44 basis points, below industry average.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MyState Ltd (ASX:MYS) successfully completed its merger with Auswide Bank, increasing its scale, capital base, and geographical footprint.
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The company reported a stable underlying NPAT of $17.5 million, driven by higher net interest and wealth management income.
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MyState Ltd (ASX:MYS) launched a new mobile app and internet banking platform, enhancing the digital experience for customers.
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The company maintained a strong capital position with a total capital ratio of 17%, providing flexibility for future growth initiatives.
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Customer advocacy remains strong with a Net Promoter Score (NPS) of plus 55, indicating high customer satisfaction.
Negative Points
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Operating expenses increased by 3% due to higher personnel costs and strategic investments in technology.
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The company's net interest margin (NIM) remained under pressure due to competitive home loan and deposit markets.
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Return on equity decreased from 7.7% to 7.5%, reflecting challenges in achieving desired profitability levels.
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The interim dividend was reduced to $0.105 per share, which disappointed some long-standing shareholders.
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TPT Wealth's funds under management (FUM) declined, raising concerns about its growth potential within the MyState Ltd (ASX:MYS) umbrella.
Q & A Highlights
Q: How does MyState plan to handle loan growth amidst competitive market conditions? A: Brett Morgan, CEO, stated that MyState aims to grow around the system given current margins. They have improved service levels, which has led to a record number of applications in January without changing prices. The goal is to accelerate growth in the second half to align with market levels.
Q: What impact does the merger with Auswide have on MyState's service levels and growth strategy? A: Brett Morgan explained that the merger has not directly impacted service levels, which have been improved independently. The focus remains on providing high-quality service, which has supported growth in application volumes. The merger offers opportunities for geographic and product expansion.