Mystate Limited · ASX:MYS
Mystate — UBS Investor Conference (November 2015)
27 slides from Mystate's conference presentation, Nov 16, 2015
Slide 1: A Growing Banking & Wealth Management Group
ASX Code: MYS For personal use only MyState Limited A Growing Banking & Wealth Management Group Melos Sulicich Managing Director & CEO David Harradine Chief Financial Officer November 2015
Slide 2: Agenda
AGENDA For personal use only 1. MyState Overview 2. Financial Position and Performance 3. A Strong Platform for Growth and Transformation MyState Limited Presentation 2
Slide 3: MyState Overview
For personal use only MyState Overview MyState Limited Presentation 3
Slide 4: Evolution of the MyState Group
Evolution of the MyState For personal use only Group MyState Limited Presentation 4
Slide 5: Our core businesses
Our core businesses For personal use only Banking Business Wealth Business The Rock Tasmanian MyState Bank (Queensland) Perpetual Trustees (Tasmania) 7 branches 4 branches 10 branches 14 mini branches Principal Activities Banking Services Trustee Services Wealth Management • Transactional and intern
Slide 6: FY2015 results
2014 2015 2015 Change FY2015 (Statutory) (Underlying) (Underlying v 2014) For personal use only results Revenue ($m) 119.3 125.1 119.5 0.2% Net profit after tax ($m) 29.6 32.5 29.7 0.3% A sound underlying result which positions Net interest margin (%) 2.43 2.28 2.28 ‐15bps the Group well for t
Slide 7: Loan book growth accelerated through the year
Loan book growth For personal use only accelerated through the year Settlements reached $1b for the first time in the Group’s history Continued acceleration in settlements with 2H 2015 ~50% above 1H 2015 FY15 settlements grew at 75% above prior year Sound loan book growth; investor loans 13%, well b
Slide 8: 2H 2015 acceleration of retail deposits
2H 2015 acceleration For personal use only of retail deposits increased share of system growth 1Q 2016 deposit growth exceeds system growth MyState Limited Presentation 8
Slide 9: Continued focus on strategic priorities
Continued focus on For personal use only strategic priorities Stronger executive team with wealth of talent and experience 9
Slide 10: Financial Position and Performance
For personal use only Financial Position and Performance MyState Limited Presentation 10
Slide 11: Sound underlying result and building for FY16
Sound underlying For personal use only result and building for FY16 Revenue improves despite competitive • Earnings stable, laying the foundations for FY16 earnings growth. intensity and NIM compression • RBA rate cuts and loan book growth presented hurdles to net Lending book velocity interest inco
Slide 12: Net Interest Margin
Net Interest Margin For personal use only Competition, RBA rate cuts and business growth impacting margin Targeted asset repricing to ease NIM pressure Funding costs expected to continue to ease in FY16 MyState Limited Presentation 12
Slide 13: Tight operating cost management continues
Tight operating For personal use only cost management continues • Cost to income ratio (underlying earnings) improves by 20bps to 64.3% MyState Limited Presentation 13
Slide 14: Strong asset growth contributed to a decline in capital ratio
Strong asset growth For personal use only contributed to a decline in the Group’s capital ratio • Capital further enhanced through $25M Tier 2 medium term notes issue post balance date. MyState Limited Presentation 14
Slide 15: Product and pricing strategy successful in attracting quality lending
Product and pricing For personal use only strategy successful in attracting quality lending Sound LVR levels maintained year on year with declining >90% LVR business Sound loan book growth with investor loans below APRA ADI average MyState Limited Presentation 15
Slide 16: Diversifying the loan book
Delivering on June 2014 home loan book $2,837.7M our strategy to For personal use only further diversify the loan book and achieve lower June 2015 home loan book $3,310.3M geographic concentration Increasing diversification through growing mainland home loan book MyState Limited Presentation 16
Slide 17: Strong credit quality and conditions
Strong credit quality and For personal use only conditions reflected in continued decline in bad and doubtful debts No signs of stress in loan book MyState Limited Presentation 17
Slide 18: Diversified funding base supports loan growth
Diversified funding base For personal use only supports loan growth Customer deposit growth driven by focus on retail banking basics and continues into FY16 Successful RMBS transaction completed in 1H 2015 provides further support for growth MyState Limited Presentation 18
Slide 19: Wealth continues to deliver consistent, stable returns
Wealth continues to For personal use only deliver consistent, stable returns to the business MyState Limited Presentation 19
Slide 20: Economic conditions continue to improve in Tasmania
Economic The Tasmanian economy continues to improve: • Business confidence high, with private investment spending posting solid conditions For personal use only gains during the financial year after a period of weakness continue to • The private investment pipeline is strong and dwelling approvals a
Slide 21: Group Performance
Group 40.0 Statutory NPAT ($ millions) Statutory earnings per share (cents) 40 37.3 Performance 32.5 33.9 For personal use only 28.5 29.6 32.7 32.7 29.9 23.4 22.0 20.0 20 Stable, consistent earnings performance and returns 0.0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Underlying cost to in
Slide 22: Dividend Performance
Dividend Performance For personal use only Dividend Yield (%) Dividends (cents per share) 6.65 6.6 6.6 6.6 30.0 28.5 28.5 28.0 28.0 6.55 6.5 20.0 14.0 14.0 14.5 14.0 6.45 Market value of 6.4 6.4 10.0 $380 million1 6.4 14.0 14.0 14.0 14.5 6.35 0.0 6.3 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Half Year
Slide 23: A Strong Platform for Growth and Transformation
For personal use only A Strong Platform for Growth and Transformation MyState Limited Presentation 23
Slide 24: Employee Connectivity and Customer Engagement both increased
Employee Connectivity For personal use only and Customer Engagement both increased Analysis of the Employee Connectivity Customer Engagement strength driven by: Survey points to the following factors: • Improvement in new customers’ • New leadership and company direction experience of on‐boarding •
Slide 25: MyState in the community
MyState in the For personal use only community MyState is committed to being a pillar of the local communities in which we live and work The MyState Foundation donated $106,000 in grants to 14 organisations across Tasmania in FY2015 Sponsorships include the MyState Wooden Boat Festival, MyState Stud
Slide 26: Pending regulatory reform
Pending regulatory • For personal use only Regulatory Developments Higher capital and mortgage risk weighting reform • APRA continued focus on the major banks to be “unquestionably strong” • Basel IV reforms to take shape later in 2015 Implications for MyState • MYS Tier 1 capital position remains w
Slide 27: Summary and outlook
Summary and outlook For personal use only Foundations for sustained growth Well positioned for the • Clear vision, strategy and commitment to execution future • Restored third party relationships and systems and sales culture • Record settlements and loan book growth Strong balance sheet • Capital a