Mystate Limited · ASX:MYS
Mystate — Shareholder Meeting (October 2014)
13 slides from Mystate's shareholder meeting presentation, Oct 16, 2014
Slide 1: MyState Limited Annual General Meeting
ASX Code: MYS For personal use only 16 October 2014 MyState Limited Annual General Meeting This presentation contains certain forward-looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward-looking statements in
Slide 2: Company Profile
For personal use only Company Profile Company Profile Company Profile MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed on the ASX and provi
Slide 3: FY2014 results: a sound result providing a platform for growth
FY2014 FY2014 FY2013 Change (%) results Revenue ($m) 119.3 122.3 -2.5% For personal use only Net profit after tax ($m) 29.6 28.5 3.9% A sound Earnings per share (cents) 33.91 32.68 3.8% result Final dividend – fully franked (cents) 14.5 14.0 3.6% providing a Total dividends for the year – fu
Slide 4: Strong balance sheet, sound capital base, and capacity to grow
Strong FY2014 FY2013 Change (%) balance Total assets ($m) 3,558.8 3,629.7 (2.0) sheet, sound For personal use only Total liabilities ($m) 3,270.1 3,350.0 (2.4) capital base, Net assets ($m) 285.6 279.7 2.1 and capacity Capital base ($m) 187.3 185.6 0.9 to grow Risk weighted assets ($m) 1,356
Slide 5: Banking business hampered by poor first half loan growth
Banking ●● Profit constrained by 1.3% contraction Banking Business NPAT of loan portfolio during the first half. business ●● Significant improvement in fourth hampered 30 $ Millions For personal use only quarter settlements recovered the by poor first lost ground, and resulted in positive 25 24.4 25
Slide 6: Re-engagement with broker channel driving uplift in new settlements
Re-engagement 44% growth in fourth quarter settlements Total settlements by quarter – actual Upward trajectory in monthly settlements with broker Broker Retail Broker Retail channel driving 250 80 $ Millions $ Millions For personal use only Substantial final quarter lift uplift in new 44% 70 45 42
Slide 7: Arrears bottomed out in 2013, still below majors and regional banks
Arrears 90+ day arrears S & P SPIN – Prime S & P SPIN – Regional Banks MyState Group Number of 90+ day loans has increased from bottomed 0.90 % average 44 in H1 to 67 in out in 0.80 For personal use only 0.70 H2. Remains very small 2013… 0.60 0.50 percentage of 25,000 0.40 total loans, and well 0.30
Slide 8: Tight cost control in 2014 mitigated the effects of the slow growth environment
Tight cost Personnel costs 45.0 Technology costs 12.0 Technology costs Software Amortisation $ Millions $ Millions control in 2014 38.422 38.489 10.042 40.0 35.659 9.726 10.0 35.0 0.2% 8.196 mitigated the 30.0 8.0 For personal use only 7.4% 3.1% 15.7% 25.0 6.0 effects of the 20.0 15.0 4.0 10
Slide 9: Wealth management provides increased contribution through cost reductions and back-office integration
Wealth ●● Revenue flat due to lower income from Wealth Management NPAT estate planning and commission. management ●● Solid full year NPAT of $4.6M up $1.5M / provides 50 $ Millions For personal use only 4.6 46.4 % on previous year. increased 45 contribution ●● Wealth management revenue remains flat
Slide 10: For personal use only
For personal use only MyState Limited AGM Presentation 2014 10
Slide 11: Summary
Summary 1. A sound financial result ●● Increased NPAT + dividend For personal use only ●● Return on average equity +8 basis points 2. Tight cost control ●● Cost-to-income continues to fall to 64.5% ●● Future improvements through revenue growth 3. Firmer platform ●● Core banking system implemented in
Slide 12: Key immediate focus areas
Key immediate focus areas For personal use only Grow Simplify Strength Relationships Transform ●● core business processes by in cost control, enhancing through through sales investing in balance sheet, staff, customer continuous and channel technology and credit risk and community improvement manage
Slide 13: Outlook
Outlook 1. N ew organisational structure to provide improved sales management with most growth to come from the Low growth For personal use only broker channel. environment to continue 2. Recovery in Tasmanian economic fundamentals provides a strong platform for continued improvement in the Need to