Mystate Limited · ASX:MYS
Mystate — Macquarie Australia Conference 2016
25 slides from Mystate's conference presentation, May 6, 2016
Slide 1: MyState Limited
ASX Code: MYS MyState Limited David Harradine Chief Financial Officer
Slide 2: Agenda
Agenda For personal use only 1. Our business 2. Our performance 3. The Tasmanian economy 4. Transforma8on journey MyState Limited – Macquarie Australia Conference May 2016 2
Slide 3: Our business
For personal use only Our business MyState Limited – Macquarie Australia Conference May 2016 3
Slide 4: Our core businesses
Our core businesses For personal use only Banking Business Wealth Business Customers 240,000 Branch network 31 (including 14 The Rock Tasmanian mini-‐branches) MyState Bank (Queensland) Perpetual Trustees (Tasmania) 7 branches 4 branches 10 branches 14 mini branches Principal Banking Services Trust
Slide 5: Corporate snapshot
Corporate Share price (12 months) snapshot For personal use only MYS S&P/ASX 200 Financials 0% Share price 1 $4.00 -‐5% -‐10% -‐15% Full paid shares 1 87.3 million -‐20% -‐25% Market cap 1 $351 million ’15 Jun Jul Aug Sep Oct Nov Dec ‘16 Feb Mar Apr Source: Commsec report, 29 April 2016 Capital
Slide 6: Sustainable dividend performance
Sustainable dividend For personal use only performance Key dividend consideraCons • Seek to maintain or increase nominal dividend whilst being alert to capital genera8on needs. • Maintain payment ra8o that is sustainable in the long term. • Pay fully franked dividends given high franking credit surp
Slide 7: Our performance
For personal use only Our performance MyState Limited – Macquarie Australia Conference May 2016 7
Slide 8: Delivering on our strategic goals
Delivering • Record seRlements, with growth achieved in both retail and broker on our channels. For personal use only GROW Growth in our • Record loan book size. revenue drivers • Con8nued revenue growth in 1H 2016, with further upside into 2H Strategic 2016. • Profit growth achieved in both banking
Slide 9: Key performance metrics heading in the right direction
Key performance For personal use only metrics heading in the right direcCon *1H15 and prior periods include Cuscal dividends; 1H15 Cuscal dividends were $0.4 million. MyState Limited – Macquarie Australia Conference May 2016 9
Slide 10: Strong revenue and NPAT performance
Strong revenue 1H 2015 2H 2015* 1H 2016 Change (v 1H 2015) Change (v 2H 2015) and NPAT Revenue ($m) 60.4 59.1 61.3 p 1.5% p 3.7% For personal use only performance Net Profit ager tax ($m) 14.9 ** 14.8 15.1 p ** 1.5%.. p 1.9% q q With further Net interest margin (%) 2.36 2.18 2.12 -‐24bps -‐6b
Slide 11: Loan book growth continuing
Loan book growth conCnuing For personal use only Loan book growth at 2x system for 1H16 Gross loans and advances ($m) *Annualised growth rate MyState Limited – Macquarie Australia Conference May 2016 11
Slide 12: Continued geographic diversification
ConCnued geographic For personal use only diversificaCon with Tasmanian concentraCon below 60% MyState Limited – Macquarie Australia Conference May 2016 12
Slide 13: Credit performance continues
Credit performance For personal use only conCnues… Impairment charges conCnue to fall reflecCng sound credit quality. Management overlay applied 1H16 as a prudent measure as loan book conCnues to grow. Arrears performance conCnuing well below peers. No large commercial exposures. Source: S&P Mortgage
Slide 14: Customer deposit growth continuing
Customer deposit growth For personal use only conCnuing Strong growth in customer deposits supporCng sustainable lending growth. A balanced and stable funding mix maintained despite strong asset growth. MyState Limited – Macquarie Australia Conference May 2016 14
Slide 15: Net Interest Margin
Net Interest Margin For personal use only NIM compression eased subsequent to loan book repricing late in 1H 2016. Funding costs improved in 1H 2016. Wholesale funding markets conCnue to experience some volaClity. MyState Limited – Macquarie Australia Conference May 2016 15
Slide 16: The Tasmanian economy
For personal use only The Tasmanian economy MyState Limited – Macquarie Australia Conference May 2016 16
Slide 17: Tasmanian Economy
Tasmanian Economy For personal use only Tasmania’s economy conCnues to Increased retail sales is a reflecCon of perform, delivering further growth into improved local confidence and a booming 2016, building on the solid growth in 2015. tourism sector. State final demand growth (12 months to Retail sale
Slide 18: Tourism a key contributor to growth
Tourism a key contributor to growth For personal use only In a trend that draws some parallels to Australia’s resources boom, Tasmania is currently experiencing a tourism boom. InternaConal visitors to Tasmania (year on year growth to 31 December 2015 17% Source: Tourism Research Australia, current
Slide 19: The housing market is trending upward
The housing market is trending upward For personal use only Tasmanian housing market performing well, with Hobart recording the highest price increases of Australian capital ciCes in the March Qtr. Dwelling price growth (12 months to March 2016) 4.8% Source: CoreLogic Housing Market and Economic Upd
Slide 20: The Tasmanian economy and our business
The Tasmanian economy and our business For personal use only • MyState is increasingly diversifying its business and growth markets geographically • Our business performance is becoming less reliant on economic and market condiCons in Tasmania • A strong Tasmanian economy remains important to: • Con
Slide 21: Transformation journey
For personal use only Transforma8on journey MyState Limited – Macquarie Australia Conference May 2016 21
Slide 22: External forces driving change
External forces driving change For personal use only OperaConal Regulatory efficiency & change Demo-‐graphics digiCsaCon Evolving Agility and distribuCon innovaCon MyState Limited – Macquarie Australia Conference May 2016 22
Slide 23: Our transformation roadmap
Our transformaCon roadmap For personal use only MyState Limited – Macquarie Australia Conference May 2016 23
Slide 24: The journey so far
The journey so far What we’ve What we’re What’s to come: For personal use only achieved: currently working on: • Loan growth 2x system through • Product • Poten8al M&A ra8onalisa8on opportuni8es improved sales and aligned core with like-‐minded culture. systems. businesses. • New loan origina8on sy
Slide 25: For personal use only
For personal use only MyState Limited – Macquarie Australia Conference May 2016 25