Mystate Limited · ASX:MYS
Mystate — Investor Presentation (September 2012)
33 slides from Mystate's investor presentation, Sep 7, 2012
Slide 1: Investor Presentation September 2012
| A Definitive Point. MyState yotate (ASX Code: MYS) Investor Presentation September 2012
Slide 2: Our Current Group Structure
Our Current Group Structure For personal use only 2
Slide 3: Result Highlights FY 2012
Result Highlights FY 2012 For personal use only • Record profit despite challenging market conditions • Regional diversification strategy on track • Acquisition of The Rock completed • Group asset footprint now $5.3bn* • Strong performance from MSF – above system loan & deposit growth • Solid perfor
Slide 4: MYS June 2012 'Snapshot'
MYS 30 June 2012 ‘Snapshot’ For personal use only Key Performance Metrics 30 June 2012 30 June 2011 June 12 v June 11 (% change) Underlying Net Profit after Tax $25.87m $23.22m 11.40% Underlying Earnings per Share 32.56 cents 32.65 cents 0.28% Dividends per Share 28 cps 27 cps 3.70% Group Total Asse
Slide 5: MYS June 2012 'Snapshot'
MYS 30 June 2012 ‘Snapshot’ For personal use only June 12 v June 11 Other Key Metrics 30 June 2012 30 June 2011 (movements) Group Capital Adequacy – Tier 1 14.20% 15.38% 1.18 Net Interest Margin - MSF (%) 2.99% 3.23% 0.24 Net Interest Margin - ROK (%) 1.87% 1.60% (1) 0.27 Underlying Cost to Income R
Slide 6: MYS Underlying Earnings Analysis
MYS Underlying Earnings Analysis For personal use only $M $M 30-Jun-12 30-Jun-11 Reported NPAT 23.383 22.020 Adjustments (post tax) Loan origination costs capitalisation -0.961 ROK acquisition costs 2.071 Loss on sale of properties 0.604 Restructuring Costs/Termination 0.764 1.200 payments Underlyin
Slide 7: MYS Group ADI assets and liabilities mix
MYS Group ADI assets and liabilities mix For personal use only Interest Bearing Asset Portfolio Interest Bearing Liability Portfolio At Call Savings Personal Loans Accounts 3% 24% Retail Term Deposits 13% Housing Loans 3% 6% 1% 6% Corporate Term Business Banking loans 30% Deposits 80% 34% Negotiable
Slide 8: Group Loans
For personal use only 8 Group Loans
Slide 9: Group Bad & Doubtful Debts Analysis
Group Bad & Doubtful Debts Analysis MSF For personal use only • Provisioning required for MSF’s lending book has declined as a result of conservative lending practices and strong arrears management • More conservative unsecured lending since September 2009 has been a contributing factor along with p
Slide 10: Group Deposits
Group Deposits For personal use only 3,000 2,500 727 2,000 ($ Millions) 1,500 1,000 1796 1,574 1582 1,311 500 0 2009 2010 2011 2012 Deposits - MSF Deposits - ROCK 10
Slide 11: Group Underlying Cost-to-Income
Group Underlying Cost-to-Income For personal use only MYS cost to income ratio* 80.00% 68.94% 70.34% 70.30% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Jan-10 Apr Oct-10 Jul-10 -10 Jan-11 Apr Oct-11 Jul-11 -11 Jan-12 * Includes The Rock for 7 months to 30 June 2012. 11
Slide 12: MYS Cost Review Project
MYS Cost Review Project For personal use only • Cost to income ratio flat, mainly due to net interest income pressures • MYS response to this “flat” outcome in YEJ 12 – external benchmarking review undertaken May/June 2012 • Implementation of initiatives underway, full year annualised operational co
Slide 13: Group Capital Adequacy
Group Capital Adequacy For personal use only 17.00% 16.50% 16.00% 15.50% 15.00% 14.50% 14.00% 13.50% (Percentage) 13.00% 12.50% 12.00% 11.50% 11.00% 10.50% 10.00% 9.50% 9.00% 8.50% 8.00% Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 A
Slide 14: MSF Interest Bearing Asset Portfolio
MSF Interest Bearing Asset Portfolio For personal use only 2,000 1,800 1,600 1,400 ($ Millions) 1,200 1,000 800 600 400 200 - Personal Loans Housing Loans (On Business Banking Revolving Credit Short Term & Off B/Sheet) loans Loans Investments 2011 YEJ 2012 YEJ Asset Category 14
Slide 15: MSF Home Lending as at June 2012
MSF Home Lending as at 30 June 2012 For personal use only Lending - Balance Growth 10.91% 10.04% 5.53% 5.03% 6 Months 12 Months MSF Household System • System data source : RBA, Lending and Credit aggregates, published on 30 June 2012. • Six month growth is to 30 June 2012 annualised. 15
Slide 16: MSF Interest Bearing Liability Portfolio
MSF Interest Bearing Liability Portfolio For personal use only 1,000 900 800 700 ($ Millions) 600 500 400 300 200 100 - At Call Savings Retail Term Deposits Corporate Term Securitisation Accounts Deposits Bonds/Notes 2011 YEJ 2012 YEJ Liability Category 16
Slide 17: MSF Household Deposits
MSF Household Deposits For personal use only MSF $(m) 12.43% 11.85% 895 8.99% 761 7.51% 572 604 6 Months 12 Months MSF Household System Jun-11 Jun-12 Transaction Deposits Term Deposits • System data source: APRA - Licensed bank deposit data published on 30 June 2012; • Six month growth is to 30 June
Slide 18: MSF Customer Satisfaction
MSF Customer Satisfaction For personal use only • MSF has the most satisfied customers of any FI operating in Tasmania. • 96% of our customers are either satisfied, very satisfied, or extremely satisfied with 75% ‘very’ or ‘extremely satisfied’ 18
Slide 19: MSF Brand dynamics
MSF Brand dynamics For personal use only • MyState second most considered ‘brand’ in the market behind CBA – brand seen as “secure” • consumers are far more likely to place their term deposits with MyState than with CBA (42% vs 27%). 19
Slide 20: MSF Net Interest Margin
MSF Net Interest Margin For personal use only 3.50% 3.30% 3.10% 2.90% 2.70% 2.50% Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 • Market asset repricing swifter than liability repricing • Highly competitive funding markets 20
Slide 21: The Rock acquisition
The Rock acquisition For personal use only • Acquisition completed 1 December 2011 • Acquisition costs of $2.1 million after tax • Management restructure and new CEO appointed • Cost synergy benefits are flowing as planned • Revenue synergy benefits in FY 2013 • Business model re-configuration under
Slide 22: The Rock Financial Performance
The Rock Financial Performance For personal use only • 7 months contribution to NPAT $3.2M • Excludes Rock initiated merger costs • Includes contribution from interest management associated with fixed rate book • NIM stabilised and improving after initial pressure from wholesale funding costs (wareh
Slide 23: The Rock Net Interest Margin
The Rock Net Interest Margin For personal use only 23
Slide 24: The Rock Asset and Liability Mix
The Rock Asset and Liability Mix For personal use only The Rock Interest Bearing Asset Portfolio The Rock Interest Bearing Liabilities Portfolio 450 1200 400 1000 350 800 300 ($ Millions) ($ Millions) 250 600 200 400 150 200 100 50 0 Personal Loans Housing Loans Business Banking Revolving Credit Sho
Slide 25: The Rock Synergy Analysis
The Rock Synergy Analysis “ The Boards of MyState and The Rock anticipate that the combination of cost and revenue synergies For personal use only will, on an annualised basis, result in potential pre-tax synergies for the Merged Entity of between $7.5 and $8.5 million per annum, within a three year
Slide 26: Core banking platform – a merger synergy
Core banking platform – a merger synergy For personal use only • Following a rigorous six month process TCS BaNCS has been selected as the core banking platform for MYS Group ADIs • Steering committee and project team formed • Synergies will be delivered in the form of reduced licensing, hosting and
Slide 27: TPT Wealth Management FUM & FUA
TPT Wealth Management FUM & FUA For personal use only 2,500 2,000 547 879 567 1,500 ($ Millions) 766 743 737 698 1,000 1,379 1,307 1,211 500 1,006 934 930 931 0 2006 2007 2008 2009 2010 2011 2012 TPT - FUM TPT - FUA 27
Slide 28: MYS Group Strategy
MYS Group Strategy For personal use only • Strong presence in Tasmania • Banking and Wealth Management • Rural and commercial/SME growth • ADI presence in Queensland – The Rock • Extract ROK synergies • Rural and commercial/SME commencement• Further consolidation of smaller • Wealth offering require
Slide 29: MYS Group Outlook
MYS Group Outlook For personal use only • Market conditions remain challenging Subdue demand for credit – record consumer savings Competitive pressures – major banks and regionals Falling interest rate environment impacts all ADI’s • Maintain discipline in both asset and liability generation
Slide 30: MYS Group Community Engagement
MYS Group Community Engagement For personal use only • MyState Group has strong community engagement activities that assist with increasing brand affinity. • MSF Community Foundation – provided in excess of $1m in grants to Tasmania’s disadvantaged youth over ten years, including contributions to th
Slide 31: MYS Group Staff Engagement Results 2012
MYS Group Staff Engagement Results 2012 For personal use only 2010 2012 Movement MyState Financial Limited 59% 67% 8.0 Tasmanian Perpetual Trustees Limited 45% 64% 19.0 The Rock Building Society 61% 56% (5.0) -------------------------------------------------------------------------------------------
Slide 32: Disclaimer
Disclaimer For personal use only 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,
Slide 33: For personal use only
| A Definitive Point. MyState yotate (ASX Code: MYS) Investor Presentation September 2012