Mystate Limited · ASX:MYS
Mystate — Investor Presentation (September 2013)
26 slides from Mystate's investor presentation, Sep 6, 2013
Slide 1: Investor Presentation September 2013
ASX Code: MYS 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
Slide 2: Disclaimer
Disclaimer 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 involve known and unknown risks, significant uncertainties, assumptions, contingen
Slide 3: Highlights: strong result in a challenging business environment
Highlights strong result in a challenging A business environment For personal use only Good cost management chieved further integration benefits for both A NPAT MyState Financial and The Rock 30 Millions $ 25 28.5 T ransitioning to a more sales-focused model 22.0 23.4* for The Rock 20 15 17.3 E xcel
Slide 4: FY2013 results
FY2013 FY2013 FY2012 Change (%) results Revenue ($m) 248.1 241.1 2.8 Normalised net profit after tax* ($m) 28.5 25.5* 11.8 For personal use only The Rock acquisition costs ($m) – 2.1 N/A Statutory net profit after tax ($m) 28.5 23.4 21.7 FY2013 FY2012 Change (%) Earnings per share (cents) 32.7 29.9
Slide 5: Balance sheet, capital strength and asset quality
Balance FY2013 FY2012 Change (%) sheet, Total assets ($m) 3,629.7 3,658.6 (0.8) capital Total liabilities ($m) 3,350.0 3,384.7 (1.0) For personal use only strength and Net assets ($m) 279.7 273.9 2.2 asset quality Risk-weighted assets ($m) 1,322.0 1,285.5 2.8 Capital adequacy (%) 14.0 14.1 0.7 Funds
Slide 6: Earnings summary
Earnings Waterfall Earnings Millions $33.00 0.8 0.1 6.0 summary $31.00 $29.00 0.4 0.1 0.3 1.1 0.7 0.6 28.5 For personal use only 2.2 1.1 $27.00 25.5 $25.00 $23.00 $21.00 $19.00 $17.00 $15.00 ns ts s s s s s ls x T AT M e st st st st st Ta PA m fu os NI io Co Co Co Co Co NP co bt N lC iss In ou g e g
Slide 7: Net interest margin
Net interest NIM 2012 Full Year 2013 1st Half 2013 2nd Half 2013 Full Year margin MyState Financial (%) 2.99 2.80 2.77 2.78 The Rock (%) 1.86 1.79 1.76 1.78 For personal use only Slight deterioration in net interest margin across the Group MyState Financial reduction a result of lag in repricing fix
Slide 8: Cost-to-income ratio
Cost-to- Group income ratio 80.0% 75.0% For personal use only 70.0% 65.0% 60.0% 2010 2011 2012 2013 Cost-to-income ratio continues to improve Rock integration and Tasmanian cost reduction program working with branch consolidation and 10% staff reductions Absolute cost reduction through last three ha
Slide 9: Operating expenses
Operating Personnel costs $m 45.0 Marketing costs $m 4.0 expenses 40.0 3.5 3.6 35.0 38.4 38.5 3.0 3.5 For personal use only 30.0 32.9 32.8 2.5 2.9 25.0 2.0 2.5 20.0 1.5 15.0 10.0 1.0 5.0 0.5 0.0 0.0 2010 2011 2012 2013 2010 2011 2012 2013 People costs reduced through centralisation of back Marketing
Slide 10: Asset mix and funding profile
Asset mix 2013 – MyState Financial 2013 – MyState Financial and funding TDs 48.2% TDs 48.2% profile For personal use only At Call Accounts 30.9% Housing Loans 88.3% CMT Notes 6.5% Overdrafts 5.0% 2007-1 5.8% Overdrafts 5.0% Personal Loans 4.0% NCDs 5.5% Commercial Loans 2.7% 2010-2 3.0% 2013 – The R
Slide 11: Loan distribution by state
Loan distribution by state For personal use only The Rock acquisition diversifies portfolio Broker channel $2.3M origination 0.1% adds further $477.8M diversification and 16.8% increases focus $69.6m on nationally 2.5% $21.1M diversified portfolio 0.7% $252.7M 8.9% $144.1M 5.1% $1,873.0M 65.9% MySta
Slide 12: Asset quality: 30 day+ arrears
Arrears MyState Financial mortgage loan arrears by units Asset 30 quality: day+ arrears30+ % day arrears MyState Financial The Rock S&P Mortgage 90+ days 60+ days 30+ days S & P Spin MyState Financial arrears Performance ROK Index For personal use only 1.8% 90 1.8 80 1.6% 1.6 70 1.4% 1.4 60 1.2 1.2%
Slide 13: Bad and doubtful debts
Bad and FY 2010 FY 2011 FY 2012 2013 doubtful Bad debts recovered ($m) (0.3) (0.8) (1.1) (1.5) debts Bad debts written off ($m) 3.5 4.6 4.8 4.1 For personal use only Increase (decrease) in 0.2 (0.6) (1.4) (0.9) provisioning ($m) Net charge to P&L ($m) 3.3 3.2 2.3 1.6 Provisioning and write offs 3.0
Slide 14: MyState Financial
“ MyState Financial provides retail and business banking, agribusiness and insurance services to 120,000 “ customers in Tasmania. For personal use only Company Profile MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed on the ASX and provides a b
Slide 15: Tasmania: economic environment
Tasmania: FY2013: economic Poorest performing State economy environment Minority government to face election in March 2014 For personal use only Private and public demand declined through FY2013 Consumer sentiment weak Company Profile Dwelling approvals low FY2014 Interest rate sensitive sectors (e.
Slide 16: MyState Financial performance summary
MyState PAT $22.3m, up by 8.5% on previous N Financial – corresponding period reflecting: performance Tasmanian Banking – MSF For personal use only summary • 4.1% increase in loan portfolio to $2.1bn • Further fall in non‑performing assets Company Profile 25.0 $ millions L ow 30-day+ secured loan ar
Slide 17: MyState Financial: high average customer satisfaction
MyState Financial: Average high For personal use only 32% 17% Extremely Satisfied 17% customer 7% 14% 13% satisfaction Company Profile Very Satisfied 37% 43% 41% 35% 33% 24% Satisfied 37% 33% 35% 30% 32% 21% MyState Limited (MYS), a non-operating holding Company, is a8% diversified financial service
Slide 18: New core banking platform on track
New core Build phase completed banking T esting well underway including implementation of platform on customer-focused system modifications For personal use only track roject completion on track for November 2013 – P extended slightly from October to allow for further testing Company Profile of cust
Slide 19: The Rock
“ The Rock provides retail banking and insurance services to “ 40,000 customers in Queensland and around Australia. For personal use only y Profile on-operating holding Company, is a diversified financial services group listed broad range of financial services through three wholly-owned subsidiaries
Slide 20: Central Queensland: economic environment
Central Strong population and employment growth Queensland: economic Favourable demographics For personal use only environment iverse mix of industries to sustain growth, D y Profile alongside mature, well-established businesses lobal demand for local commodities G on-operating holding Company, is a
Slide 21: The Rock performance summary
The Rock N PAT of $2.9m (pcp – 7 months only: $3.3m) performance C ontributed $1.6m to group overheads (pcp: nil) summary L oan portfolio reduced by 9.7% to $0.9m due to less activity through For personal use only Central Queensland Banking – The Rock broker channel – initiatives taken to reverse th
Slide 22: Tasmanian Perpetual Trustees
“ Tasmanian Perpetual Trustees is a major provider of estate planning, wealth management, investment “ and trustee services in Tasmania For personal use only Burnie versified financial services group listed Devonport ugh three wholly-owned subsidiaries, Launceston The Rock) authorised deposit-taking
Slide 23: Tasmanian Perpetual Trustees performance summary
Tasmanian NPAT of $3.1m, up 108.4% from previous Perpetual corresponding period Trustee and Wealth Business – TPT Trustees – For personal use only performance • Cost reductions through integration of summary business units and centralisation of back office systems • Higher commission income from est
Slide 24: TPT funds under management and advice
Tasmanian Total FUM up 2.2% to $952m Perpetual ood fund flow into strongly performing income funds G Trustees – For personal use only TPT - FUM and into growth funds funds under Investors moving away from cash management and advice Some flow coming via new ‘platform’ distribution Funds under advice
Slide 25: MyState Limited group strategy
MyState Maintain and grow strong presence in Tasmania: Limited • Banking, wealth management and asset management – group For personal use only Capitalise on The Rock growth opportunities including: strategy • Enhanced product, service and channel offerings • Wealth offering ontinued focus on enablin
Slide 26: Outlook
Outlook F Y2014 will be another challenging year for the banking and wealth management industries For personal use only S ignals from Australian businesses and the Reserve Bank’s interest rate reductions over the past two years infer lack of confidence in the economy’s growth D espite this challengi