Mystate Limited · ASX:MYS
Mystate — UBS Australasia Conference 2018
18 slides from Mystate's conference presentation, Nov 12, 2018
Slide 1: UBS Australasia Conference
November 2018 For personal use only UBS AUSTRALASIA CONFERENCE
Slide 2: Agenda
For personal use only AGENDA Melos Sulicich CEO David Harradine CFO • Corporate Profile and History • Strategy • Sector Overview • Key Highlights FY18 • Banking Business • Wealth Business • Sector Overview UBS AUSTRALASIA CONFERENCE | 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.$420m • c.64,000 shareholders Banking Wealth Geographic home loan book spread • Consistent dividend returns 86% NT 14% QLD 0.1
Slide 4: 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 5: 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 6: 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 7: 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 • Targeted branch closures • Increase in customer NPS to +27 • Moody’s Baa1/P2 system • Productivity benefits • Introduce
Slide 8: Building a Digital, Scalable Business
BUILDING A DIGITAL, SCALABLE BUSINESS * For personal use only * All statistics compare FY18 with FY17 unless otherwise stated UBS AUSTRALASIA CONFERENCE | 8
Slide 9: Key Highlights FY18
KEY HIGHLIGHTS FY18 For personal use only Growth across key financial metrics and underlying performance drivers Growing contribution from digital channels with increased customer adoption and advocacy Continued momentum in bank balance sheet and FUM growth and soundly capitalised for future g
Slide 10: 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 11: 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 $1.0 0.88 0.79 1.00 growt
Slide 12: Continued High Credit Quality
CONTINUED HIGH CREDIT QUALITY 30+ Days S & P Arrears Data Impairments remain at historic lows (Majors and Regionals one month behind) 3.00% For personal use only 30 and 90 day arrears well below peers and stable 2.50% 2.00% AASB 9 to be implemented FY19 with expected 1.50% increase in provisio
Slide 13: Improved Funding Mix
IMPROVED FUNDING MIX Customer deposits ($m) For personal use only Stable funding mix enhanced by growth +10% $2,988 +9% $3,267 $2,715 in customer deposits 1,717 1,527 Customer deposit growth supported by 1,397 introduction of eSaver and Everyday 1,550 transaction accounts 1,318 1,461 Programma
Slide 14: Growth in Wealth Business
GROWTH IN WEALTH BUSINESS Funds under management and funds under advice ($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 15: Well Capitalised to Support Growth
WELL CAPITALISED TO SUPPORT GROWTH Robust capital position supported by organic capital generation For personal use only Capital base underpinning growth and investment in digital Well positioned to meet regulatory changes Total capital movements 1.74% 1.51% 13.29% 0.13% 1.39% 1.46% 0.08% 13.4
Slide 16: Tasmanian Economy
TASMANIAN ECONOMY For personal use only Economic data sourced from ABS, CoreLogic and Tourism Tasmania UBS AUSTRALASIA CONFERENCE | 16
Slide 17: 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 18: 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