Mystate Limited · ASX:MYS
Mystate — 1H FY18 Earnings Presentation
24 slides from Mystate's earnings presentation, Feb 23, 2018
Slide 1: Investor Presentation February 2018
Investor Presentation February 2018 For personal use only
Slide 2: Agenda
1H FY18 INVESTOR PRESENTATION | 2 For personal use only Agenda 1H FY18 INVESTOR PRESENTATION 1. Highlights & strategy Melos Sulicich CEO & Managing Director 2. Financial results David Harradine Chief Financial Officer 3. Strategy & outlook Melos Sulicich CEO & Managing Director MyState are major spo
Slide 3: Highlights & strategy
1H FY18 INVESTOR PRESENTATION | 3 For personal use only Highlights & strategy MELOS SULICICH Key highlights Results Strategic priorities
Slide 4: Key highlights
1H FY18 INVESTOR PRESENTATION | 4 Key highlights For personal use only • Strong shareholder returns with growth in NPAT, EPS and dividend • Wealth business growing with solid revenue performance and gains in FUM and FUA • Growing a quality loan book • Technology investment driving digital customer a
Slide 5: Solid growth across key metrics
1H FY18 INVESTOR PRESENTATION | 5 Solid growth across key metrics For personal use only Change on 1H 17 results except where otherwise stated • Margin management delivered NII Total income: Net interest income: 3.6% 6.8% improvement on pcp $64.0m $46.4m Net profit after tax: Earnings per share: • Op
Slide 6: Delivering on our strategic priorities
1H FY18 INVESTOR PRESENTATION | 6 Delivering on our strategic priorities For personal use only MyState’s strategy is underpinned by 5 strategic goals MyState’s technology successes GROW • Bank balance sheet Lendfast and Apply To improve scale • FUM COMPLETED: APRIL 2017 economies • Digital customer
Slide 7: Financial results
1H FY18 INVESTOR PRESENTATION | 7 For personal use only Financial results DAVID HARRADINE Results summary Performance Credit profile Loan book Funding Wealth
Slide 8: Solid growth in key financial metrics
1H FY18 INVESTOR PRESENTATION | 8 Solid growth in key financial metrics Change Change 1H FY17 2H FY17 1H FY18 (v 1H FY17) (v 2H FY17) For personal use only Total operating income ($m) 61.8 62.8 64.0 +3.6% +2.0% • Sound underlying revenue Operating expenses (excl. BDD) growth with Net Interest ($
Slide 9: Disciplined margin management
1H FY18 INVESTOR PRESENTATION | 9 Disciplined margin * Spread above 3 month bank accepted bill rate Source: RBA – January Industry Term Deposit Spreads (%) management 2018 For personal use only 0.90 0.70 • Margin improvement over 2H17 0.50 0.48 0.30 • Lending market remains highly competitive 0.10 0
Slide 10: Operating costs well managed
1H FY18 INVESTOR PRESENTATION | 10 Operating costs well managed For personal use only Operating expenditure 43 $ Millions 43 $0.06 $0.31 $0.14 42 $0.21 $1.61 42 $0.81 $0.37 41 $0.02 $41.39 41 $41.09 0.7% growth 40 1H FY17 Personnel Marketing Governance Technology Occupancy Administration Payment Dep
Slide 11: NPAT growth driven by NII and Wealth
1H FY18 INVESTOR PRESENTATION | 11 NPAT growth driven by NII and Wealth For personal use only NPAT waterfall ($m) 0.3 1.4 0.3 0.3 0.9 1.0 2.9 3.9% growth 15.8 15.2 1H FY17 net Net interest Other income Banking non Wealth income Operating Net bad and Tax expense 1H FY18 net profit after tax income in
Slide 12: Strong growth in high quality mortgages
1H FY18 INVESTOR PRESENTATION | 12 Strong growth in high quality mortgages For personal use only Home loan book LVR • Growth in <80% LVR with strong asset quality focus profile ($b) Year on year • Growth rate slowed with emphasis on managing investor growth lending and IO portfolios to regulatory re
Slide 13: Continued high credit quality
1H FY18 INVESTOR PRESENTATION | 13 Continued high credit quality • Growing and maintaining very high credit quality For personal use only 30+ Days S & P Arrears Data (Majors and Regionals Two months behind) • Impairments at historic lows 2.50% 2.00% • 30 and 90 day arrears below peers and stable 1.5
Slide 14: Enhanced geographic footprint
1H FY18 INVESTOR PRESENTATION | 14 Enhanced geographic footprint Geographic spread For personal use only • Continued broadening geographic base of loan book 1H FY17 • Tasmanian concentration below 50% 4% • Growth targeted to Australian eastern seaboard 15% 13% 52% 15% NT $2.8m 0.1% QLD 1H FY18 $587.
Slide 15: Quality, low risk loan book
1H FY18 INVESTOR PRESENTATION | 15 Quality, low risk loan book Home loan book – applications and settlements ($b) For personal use only • Emphasis on maintaining quality lending $1.0 0.80 0.92 0.79 growth amidst strong competition $0.8 0.76 0.62 0.64 0.55 • Loan book growth has eased; margin $0.6 0.
Slide 16: Diverse funding sources to fund growth
1H FY18 INVESTOR PRESENTATION | 16 Diverse funding sources to fund growth Customer deposits ($m) For personal use only +9% +5% • Stable funding mix underpinned by core $2,700 $2,715 $2,931 $2,988 $3,075 customer deposits 1,531 1,527 1,533 1,419 1,396 • Customer deposit growth supported by online eSa
Slide 17: Robust capital structure
1H FY18 INVESTOR PRESENTATION | 17 Robust capital structure For personal use only Total capital movements 0.87% 13.3% 0.32% 13.4% 0.16% 0.76% 0.03% 0.39% 0.08% Tier 2 2.01% 1.98% Tier 1 11.28% 11.41% Jun 2017 Capital Initiatives Profit Dividends Paid Capitalised Securitised Assets Secured Mortgage O
Slide 18: Wealth growth adds to diversity
1H FY18 INVESTOR PRESENTATION | 18 Wealth growth adds to diversity For personal use only Funds under management and funds under advice ($m) • Wealth revenue growth at 10.5% on pcp with solid revenue growth across all business lines +10% 778 815 758 740 754 • Highest FUM growth in almost a decade +13
Slide 19: Momentum in the Tasmanian economy
1H FY18 INVESTOR PRESENTATION | 19 Momentum in the Tasmanian economy For personal use only 9% Source: ABS Labour Force, Jan 2018, Trend data Unemployment rate • The Tasmanian economy has experienced Tasmania (%) strong economic growth and is well 8% positioned for this to continue 7% • In January 20
Slide 20: Strategy & outlook
1H FY18 INVESTOR PRESENTATION | 20 For personal use only Strategy & outlook MELOS SULICICH Sector overview Platform for continued growth
Slide 21: Sector overview
1H FY18 INVESTOR PRESENTATION | 21 Sector overview • System credit growth moderating $ For personal use only Industry dynamics • Property price growth easing • Lending market continues to be highly competitive • BEAR • Royal Commission • Productivity Commission Review • Competitive landscape still u
Slide 22: Platform for continued growth
1H FY18 INVESTOR PRESENTATION | 22 Platform for continued growth What we’ve achieved For personal use only Deposit and loan Costs Digital Strong capital book growth • Targeted branch closures transformation position • Strong cost • New Payments Platform • Moody’s Baa1/P2 • Solid growth but • Online
Slide 23: Glossary
1H FY18 INVESTOR PRESENTATION | 23 Glossary For personal use only 1H: First half of financial year IO: Interest only 2H: Second half of financial year IRB: Internal ratings-based ADI: Authorised deposit-taking institution LVR: Loan to valuation ratio APRA: Australian Prudential Regulation Authority
Slide 24: Disclaimer
1H FY18 INVESTOR PRESENTATION | 24 Disclaimer For personal use only Summary Information This Presentation contains summary information about MyState and its activities current as at the date of this Presentation. The information is subject to change without notice and does not purport to be complete