Mystate Limited · ASX:MYS
Mystate — Investor Presentation (December 2018)
14 slides from Mystate's investor presentation, Dec 11, 2018
Slide 1: ASX CEO Connect
For personal use only ASX CEO CONNECT 11 December 2018
Slide 2: Agenda
For personal use only AGENDA Melos Sulicich CEO • Corporate Profile and History • Strategy • Key Highlights FY18 • Banking Business • Wealth Business • Summary ASX CEO CONNECT | 2
Slide 3: Corporate Profile
CORPORATE PROFILE MyState is a leading regional bank with Banking and Wealth management operations For personal use only • ASX300 listed company • Market capitalisation of c.$400m Banking Wealth Geographic home loan book spread • c.64,000 shareholders • Consistent dividend returns 86% NT 14% QLD 0.1
Slide 4: Consistent Returns to Shareholders
CONSISTENT RETURNS TO SHAREHOLDERS Dividends (cps) ▪ Consistent dividend returns to investors For personal use only ▪ 100th percentile TSR compared to ASX300 Banks in FY13, 14, 15 and 16. 90th percentile in FY17. ▪ High yielding fully franked dividend TSR comparison 100.0% 90.0% 80.0% 70.0% Percenti
Slide 5: Corporate History
CORPORATE HISTORY For personal use only The Rock and + MyState Bank merge ADI licenses. The The Rock Rock continues as a + = Building Society brand of MyState joins the MyState Bank 6.00 MyState Financial Limited Group and Tasmanian Perpetual Trustees merge 5.50 to form MyState Limited 5.00 + = MYS
Slide 6: Strategic Priorities
STRATEGIC PRIORITIES Our PURPOSE For personal use only To help people achieve their dreams Our GOALS are to be Our MISSION Simpler, more relevant, accessible for our customers and easier to “use” To make financial services simple and trustworthy Our VISION Evermore digitally enabled so that we can a
Slide 7: Modernised Product Offering
MODERNISED PRODUCT OFFERING Investment in digital has modernised the banking business and allows us to embrace digital savvy customers For personal use only New Payments Platform COMPLETED: FEBRUARY 2018 Currently enabled Simplified products: • Clean, simple online application process; accounts open
Slide 8: FY18 Metrics and Performance Drivers
FY18 METRICS AND PERFORMANCE DRIVERS For personal use only Change on FY17 results except where otherwise stated Total income: Net interest income: $126.3m +1.4% $90.8m +3.1% Solid performance and growth across all Net profit after tax: Earnings per share: key metrics $31.5m +4.6% 34.97 cps +0.93cps
Slide 9: Strong 2H Lending Growth
STRONG 2H LENDING GROWTH ▪ Loan book grew +2x system during 2HFY18 Home loan book – applications and settlements $2.0 1.79 For personal use only 1.68 ▪ Margin management remains key focus $1.8 $ Billion $1.6 1.42 $1.4 1.19 1.11 ▪ Emphasis on maintaining quality lending $1.2 $1.0 0.88 0.79 1.00 growt
Slide 10: Continued High Credit Quality
CONTINUED HIGH CREDIT QUALITY 30+ Days S & P Arrears Data ▪ Impairments remain at historic lows (Majors and Regionals one month behind) 3.00% For personal use only ▪ 30 and 90 day arrears well below peers and stable 2.50% 2.00% ▪ AASB 9 to be implemented FY19 with expected 1.50% increase in provisio
Slide 11: Growth in Wealth Business
GROWTH IN WEALTH BUSINESS Funds under management and funds under advice ($m) For personal use only ▪ Wealth revenue growth +10.6% on pcp with 778 809 solid performance across all business lines 740 ▪ Trustee revenue +25% on pcp benefiting from +6% sustained focus on will writing 1,008 1,089 1,153 ▪
Slide 12: Platform for Continued Growth
PLATFORM FOR CONTINUED GROWTH What we’ve achieved For personal use only Deposit and loan Costs Digital Robust capital book growth transformation position • Continued growth above • Productivity benefits • Increase in customer NPS to +35 • Moody’s Baa1/P2 system accruing • Introduced new transaction
Slide 13: Sector Overview
SECTOR OVERVIEW ▪ System credit growth still slowing ▪ Housing market cooling nationally $ For personal use only Industry ▪ Lending market continues to be highly competitive dynamics ▪ Funding costs remain elevated ▪ Royal Commission ▪ Productivity Commission Review ▪ Competitive landscape still unb
Slide 14: Disclaimer
DISCLAIMER For personal use only Summary Information Future Performance This Presentation contains summary information about MyState and its activities current as at This Presentation may contain “forward-looking” statements including statements the date of this Presentation. The information is subj