Slide 1: Investor presentation Full year 2022
Investor presentation Full year 2022 MyStateLimited W
Slide 2: Agenda
Agenda Overview and highlights Financial results Brett Morgan Gary Dickson Managing Director & CEO Chief Financial Officer Outlook Brett Morgan Appendices Managing Director & CEO
Slide 3: Overview and highlights
Overview and highlights Brett Morgan Managing Director & CEO
Slide 4: 2025 growth strategy recap
2025 growth strategy recap Our ambition is to grow our share in deposits, lending and FUM MyStateBank TPTE WEALTH Everyday banking Lending Asset Management Trustee Services * Transaction accounts » Home Loans * Mortgage funds * Wills & Estate planning Core offering * Saving accounts * Investment Loa
Slide 5: FY highlights
FY 22 highlights $6.8b $5.6b $32.0m Home loan book Customer deposits NPAT +25.5%. Over 3.0x system Strong growth of +25.1% Second highest on record 0.41% +14.8% $354m . 30 day arrears New to bank customer growth TPT commercial loan book Considerably below industry Strong uplift in new customers Grow
Slide 6: Executing on our growth strategy
Executing on our growth strategy (2) Customers JV New customer growth x + 14.8% 2 V_ Net Promotor Score a +43 = Vv Digital transactions ~96% Estates managed +40% Increase in investor returns from direct lending asset allocation +51 bps Lexe Business V Loan settlement growth + 93% V Customer deposit
Slide 7: Increasing investment in ESG
Increasing investment in ESG The 6 ESG topics that matter most to us: : Digital 7 Environmental enablement Helping our Community sustainability and data Pee be investment security their best Governance, conduct and culture FY22 progress For MyState, being sustainable is about how we create value for
Slide 8: Focusing on community
a Focusing on community MyState Bank Arena Naming rights sponsorship of the new home of entertainment and sport in Tasmania. JackJumpers NBL team Joined forces with the JackJumpers to make genuine community connections all around Tasmania. Football Tasmania Naming rights sponsor of the Women’s Super
Slide 9: Financial results
Financial results Gary Dickson Chief Financial Officer
Slide 10: FY22 financial performance
Total operating income up $1.7m (+1.2%) on pcp NPAT down 11.9% to $32.0m (second highest on record) Cost to Income ratio increased to 68.4% reflects up front investment in growth initiatives EPS and ROE diluted as capital raised in June 2021 has been fully deployed to support lending growth Final di
Slide 11: Net profit after tax
Net 42 2 40 538 S 36 w 34 32 30 28 26 24 22 20 @ Second highest NPAT on record profit after tax | 1 Increase J mE MM ODecrease | 11.0 | 0.2 09 18 7 -11.9% decline FY21 Restructure Net interest Other Wealth Operating Net bad and Other income Income tax FY22 Statutory costs* income banking management
Slide 12: Investment in growth reflected in operating costs
Investment in growth reflected in operating costs * Operating costs increased by 12.9% led by investment in marketing and brand awareness and corresponding higher lending and deposit volumes * Higher personnel costs reflective of investment in growth related roles, primarily distribution and operati
Slide 13: Growth in settlements driving loan book growth
Growth in settlements driving loan book growth * Home loan settlements of $3.0bn were up 93% on pcp * — Significant momentum running into FY23 with Q4 home loan applications up 63% on pcp * Home loan book comprises 98% of lending assets * Maintaining quality lending growth remains a key focus Home L
Slide 14: Accelerated home loan book growth
Accelerated home loan book growth Loan balance & lending flows ($b) * Growth driven by lower risk owner occupied P&I lending with LVR <80% po | 09 | + Fixed rate lending as a proportion of total flow was 24.5% in FY22 (1H22: 34% & 2H22: 15%) reflective of the rising rate environment. Fixed rate flow
Slide 15: Home loan LVR composition
• • • • • >90% 80%-85% 85% - 90% <80%
Slide 16: Loan provisioning
Loan provisioning * Decrease in Total collective provisions consistent Credit provisions ($m) with lower arrears and a reflection of the credit 6.6 quality of the lending book 54 * Forward looking overlay of $0.9m unchanged from 45 31 December 2021 reflecting no customers being 1.4 on COVID-19 relat
Slide 17: Continued growth in customer funding
Continued growth in customer funding Customer deposits grew above system (+25% on pcp) and represent 73% of the funding mix Continued growth in the award winning Bonus Saver Account (+20% on 30 June 2021) driven by digital acquisition of new customers Customers started to move towards term style pro
Slide 18: NIM decline a reflection of market competition
NIM decline a reflection of market competition * Net interest margin down 29bps on pcp, reflecting growth in the home loan book and portfolio mix * Lending market still remains highly competitive due to refinance incentives driving customer switching and retention discounting * Funding cost benefits
Slide 19: Growth a result of effective capitalisation
Growth a result of effective capitalisation Effective capital strategy underpinning growth and investment in capability Prior year’s capital raise proceeds of $55.5m have been deployed to execute MyState's growth strategies Further capital flexibility will be provided by Additional Tier 1 and Tier 2
Slide 20: TPT Wealth positioning for growth
TPT Wealth positioning for growth Wealth operating income up 8.8% on pcp FUM 3.9% lower ($1.062bn) on pcp Commercial lending book growth of 33.9% following investment in distribution capability Investment Services management fees in line with pep Trustee Services related income up 29.4% on pcp TPT W
Slide 21: TPT Wealth lending
TPT Wealth lending Benefits of increased allocation to direct mortgages * — Increased advertising & distribution in Tasmania in FY22 Increased management fee income on growing TPT FUM balance * ¢.12% increased allocation to direct mortgages in FY22 * 51bps increase in returns for investors in FY22 d
Slide 22: Outlook
Outlook Brett Morgan Managing Director & CEO
Slide 23: Outlook
SHORT TERM MEDIUM TERM Outlook Grow our customer lending, deposits and FUM Continue to improve CX across our digital and human channels Continue to invest into digital and simplify our products, processes and systems Deliver operating leverage from scale EPS and ROE accretion 23
Slide 24: Why MyState?
Le [® Why MyState? Unique bank and wealth (funds and trustee) businesses Proven and consistent financial performance Ww oUo ‘& Leading trusted Tasmanian brand with strong advocacy Delivering on early stages of growth strategy 24
Slide 25: Appendices
ices < Y oO. oO. <
Slide 26: Digital transformation driving growth
Digital transformation driving growth Migration to digital continues Digital transactions (#m)' Branch transactions (#m)* 4.06 4.19 * Customer uptake of internet 3.54 Oz) and mobile banking 3.34 increasing. 2.87 2.90 * Digitisation of back office processes increasing scalability and speed. + Alinsig
Slide 27: Glossary
First half of financial year Second half of financial year Authorised deposit-taking institution Australian Prudential Regulation Authority Average Australian Securities Exchange Bank Bill Swap Rate Bad & Doubtful Debt Expense basis points Compounded annual growth rate Common Equity Tier 1 Cents per
Slide 28: Disclaimer
Disclaimer Summary Information This Presentation contains summary information about MyState Limited (ABN 26 133 623 962) and its activities current as at the date of this Presentation. The information is subject to change without notice and does not purport to be complete or comprehensive. It does n