Mystate Limited · ASX:MYS
Mystate — UBS Australian Small Caps Conference 2014
17 slides from Mystate's conference presentation, Dec 2, 2014
Slide 1: A Growing Banking & Wealth Management Group
ASX Code: MYS December 2014 For personal use only MyState Limited A Growing Banking & Wealth Management Group Melos Sulicich Managing Director & CEO UBS Australian Small Caps Conference
Slide 2: Our core businesses
Our core businesses For personal use only Customers 240,000 Company Profile Company Profile 32 including MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed Branch network 15 mini-branches on the ASX and provides a broad range of financial service
Slide 3: Headquartered in Tasmania, its diverse business operations cover
Headquartered in Tasmania, its diverse business operations cover: Headquartered in Tasmania, its diverse business operations cover: Banking Services Trustee Services Banking Services Wealth Management Trustee Services Transactional and internet banking Estate planning Financial planning Transactiona
Slide 4: Strong regional community ties
Strong regional Long term commitment to deep connections in our For personal use only community ties local communities. • MyState Community Foundation • The Hardie Fellowship • MyState Student Film Festival • Cape Hope • CQ NRL Junior Development Program • MyState Wooden Boat Festival • John Maxwell
Slide 5: Tasmanian economy slowly improving
Tasmanian economy • Tasmanian Housing Finance Tasmanian housing finance commitments For personal use only slowly improving Commitments have recovered off a low base Tasmanian economy continues to improve at a moderate pace. • Growth in Tasmanian state Change in state final demand % final demand rela
Slide 6: MyState Group Key Results – June 2014
MyState Group NPAT of $29.6m increased by Return on average equity of For personal use only Key Results – 3.9% on previous year 10.5%, up from 10.4% June 2014 • Tight cost control • Soft revenues • Low bad debts expense reflecting Annual dividend increased by sound credit quality 3.6% to 28.5 cents
Slide 7: Banking Business Key Results – June 2014
Banking Business NPAT of $25.0m is 0.8% down For personal use only Key Results – on previous year June 2014 • Revenue impacted by loan Banking Business NPAT $m portfolio dynamics 30 $ Millions Total loan portfolio growth 25.2 of 0.4% 25 24.4 25.0 • First half impacted by significant reduction in bro
Slide 8: Loan book growth gathering momentum
Loan book Banking business loan book $b Home loan book $b For personal use only growth gathering 3.120 1.500 $ Billions $ Billions Retail Broker momentum 3.100 1.450 Focus on basic drivers of 3.060 1.400 the business has delivered a turnaround in business 3.040 1.350 momentum. Most growth coming 3.0
Slide 9: Settlements are growing
Settlements are • Settlements reach a Quarterly home loan settlements $m For personal use only growing higher plateau 250 $Millions 200 Loan approval momentum 150 is building and will 100 deliver further uplift in 50 settlements heading into the second half. 0 Sep 12 Qtr Dec 12 Qtr Mar 13 Qtr Jun13
Slide 10: Margins are tightening, but credit standards remain strong
Margins are • Margins under competitive Net interest margin % For personal use only tightening, but pressure 3.00% 2.80% credit standards 2.60% remain strong 2.40% 2.20% 2.00% 14 14 4 4 14 14 14 13 3 14 3 13 13 3 13 13 13 13 13 13 14 14 n1 c1 r1 l1 r1 ar b g p ct n b ar ay n l g p ct v ay n Ju Ju Ja
Slide 11: Increasing loan book diversity
Increasing loan For personal use only book diversity Loan book diversity changing JUN ‘14 away from Tasmania. 0.1% $2.3m OCT ‘14 0.1% $2.7m JUN ‘14 16.2% $459.4m Home Loan Growth % OCT ‘14 (Jul-Oct ‘14) (p.a.) JUN ‘14 16.2% $468.6m 2.2% $61.9m OCT ‘14 Mainland 13.8% 2.3% $66.9m JUN ‘14 0.7% $19.2m T
Slide 12: Strong retail funding base an advantage
Strong retail funding For personal use only base an advantage Our credit union heritage 17% Securitisation provides a strong and stable retail funding base. 32 % Retail Savings 7% NCD • MyState Bank Limited and The Rock Building Society, both rated BBB 8% Wholesale Term (Stable) by Standard and Poor
Slide 13: Wealth Management Key Results – June 2014
Wealth Management NPAT of $4.6m is up 46.4% on previous year For personal use only Key Results – • Improved NPAT through cost reductions and back office integration June 2014 • $55.4m increase in Funds Under Management (+ 5.8%) • $32.3m increase in Funds Under Advice (+4.4%) • Select Term Fund close
Slide 14: Wealth management business sound and steady
Wealth • FUM fees generate the Wealth management fees % For personal use only management majority of revenue for the wealth business, and are 100% Financial Planning 16.4% FUM Estates 17.3% 16.9% business sound continuing to grow 75% 48.1% 50.6% 51.7% and steady 50% 35.5% 32.1% 31.4% 0% 2012 2013 20
Slide 15: Our strategy for growth
Our strategy for For personal use only growth Grow Simplify Strength Relationships Transform • Sales development • Policy • Balance sheet • Community • Leadership • Brand development • Process • Cost control development • Culture • Customer base growth • Empower staff • Risk appetite • Know the cust
Slide 16: Major projects
Major projects New core banking platform deployed by For personal use only MyState Bank • Increased capability to launch product and integrate new technologies • Planning underway to consolidate core systems • Single instance will provide further cost savings and productivity gains Investment in new
Slide 17: Summary
Summary • Sales momentum is building, and the home loan book is For personal use only growing faster than system • Increasing loan book geographic diversity • Strong and stable retail funding base • Wealth management business is steady, providing income diversity • Continuing to invest in systems –