Mystate Limited · ASX:MYS
Mystate — Wilsons Rapid Insights Conference (June 2017)
20 slides from Mystate's conference presentation, Jun 1, 2017
Slide 1: Wilsons Rapid Insights Conference
For personal use only June 2017 Wilsons Rapid Insights Conference
Slide 2: Agenda
Agenda 1 Overview and Strategic Landscape For personal use only Melos Sulicich CEO & Managing Director 2 Financial Results David Harradine Chief Financial Officer The MyState Student Film Festival is Tasmania’s premier youth artistic event. 2
Slide 3: Overview
Overview For personal use only High quality loan • Momentum in loan book growth, particularly in lower risk book with NIM segments and ROE ahead • Exemplary asset quality and credit performance of peers • Disciplined execution on strategy with Transformation Program well underway, providing a platfo
Slide 4: Introduction to MyState
• ASX 300 listed company Introduction to MyState • Regulated by APRA • Licensed as a bank • Market capitalisation $420m* MyState is a leading Australian regional bank headquartered in Tasmania with Banking and • BBB credit rating For personal use only Wealth operations Banking 198,000 Wealth total c
Slide 5: Corporate history and share price
Corporate history and share price The Rock and MyState + Bank merge ADI licenses. For personal use only The Rock continues as a The Rock Building brand of MyState Bank Society joins the MyState + = Limited Group 6.00 MyState Financial and Tasmanian Perpetual 5.50 Trustees merge to form MyState Limit
Slide 6: Banking landscape
Banking landscape 30.0% Annual credit growth (%) 25.0% 20.0% 15.0% For personal use only 10.0% 8.1% 5.2% Owner-occupier housing 5.0% Strong competition in lending 0.0% 3.7% Investor housing -1.3% and deposits in 1H17 which -5.0% Personal -10.0% has eased -15.0% Business Sep-2012 Sep-2013 Sep-2014 Se
Slide 7: Delivering on our strategic goals
Delivering on our strategic goals • $4b+ loan book with home loans growing at around 2x system Growth in our • Modest revenue growth in a challenging environment GROW revenue drivers • Strong and stable customer deposit growth For personal use only • Repricing of loan pools to support revenue OUR PU
Slide 8: Our transformation roadmap
Our transformation roadmap Where we are For personal use only 2015 Transformational journey 2020 Future benefits MANUAL PROCESSES • Single view of customer Customer experience • Customer focused processes (best for future them) Barriers to great customer experience removed. Customer • Relationship f
Slide 9: MyState's digital transformation
MyState’s digital transformation For personal use only Lendfast and Apply CRM IB and Mobile stage 1 Replace the current IB systems and Introduce a web-based origination Implemented automatic marketing and mobile apps, allowing for the integration system for customers to open accounts campaign manage
Slide 10: Agenda
Agenda 1 Overview and Strategic Landscape For personal use only Melos Sulicich CEO & Managing Director 2 Financial Results David Harradine Chief Financial Officer MyState’s vision is to make a genuine difference to our customers and communities everyday. 10
Slide 11: Most recent financial results (1H FY17) - overview
Most recent financial results (1H FY17) - overview For personal use only Net profit after tax: Home loan book: $15.2m 0.7% $3.94b 15.0% 2.4x system Customer deposits: Total assets: MyState’s Market Cap $2.93b 16.0% $4.4m 8.2% 1.6x system $420m* Earnings per share: Capital adequacy ratio: 17.3cps Ste
Slide 12: Applications and settlements maintained at higher levels
Applications and settlements maintained at higher levels For personal use only Strong broker and retail relationships reflected in settlements growth 1H 2017 settlements exceeded pcp by 26%. Home loan book growing at 2.4x system Increased conversation rate of applications reflects higher service lev
Slide 13: Continued geographic diversification
Continued geographic diversification For personal use only Tasmanian concentration has fallen to 52% 13
Slide 14: Low LVR growth strategy
Low LVR growth strategy For personal use only Growing in a low risk manner is a strategic imperative 1H17 growth entirely from <80% LVR lending 14
Slide 15: Credit performance continues to be at an industry leading level
Credit performance continues to be at an industry leading level For personal use only Outstanding arrears performance Impaired assets at 4bp of loan book 15
Slide 16: Overview of MyState funding
Overview of MyState funding New online ‘eSaver’ product attracting For personal use only significant depositor funds with limited marketing. Customer deposits underpin strong and stable liquidity. Continued funding diversification through wholesale funding and securitisation whilst maintaining balan
Slide 17: Strong and consistent returns to shareholders
Strong and consistent returns to shareholders High Dividends (cps) Underlying ordinary dividend payout ratio (%) dividend Fully For personal use only 28.0 28.0 28.5 28.5 28.5 yield franked 14.0 14.0 14.5 14.5 14.5 86 85 dividends 84 82 14.0 14.0 14.0 14.0 14.0 14.0 81 80 Maintain or 2012 2013 2014 2
Slide 18: Wealth
Wealth The Wealth business delivers traditional trustee services, financial planning and advice, and investment management For personal use only • Stabilise and grow existing revenue whilst building out new revenue streams • Leverage income fund capability through specialist offering into growth mar
Slide 19: Delivering a platform for continued growth
Delivering a platform for continued growth For personal use only What we’ve achieved: What we’re currently working on: What’s to come: • Loan book growth well above peers • Call centre system replacement • Leveraging technology and • MTN program and sub-debt issuance • Product rationalisation simpli
Slide 20: Important notice and disclaimer
Important notice and disclaimer For personal use only The material in this presentation contains summary background information about the business of MyState Limited (MYS) as at the date of this presentation. The information contained in this presentation is in summary form and is not, and does not
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