Mystate Limited · ASX:MYS
Mystate — Investor Presentation (March 2013)
27 slides from Mystate's investor presentation, Mar 8, 2013
Slide 1: Investor Presentation March 2013
For personal use only INVESTOR PRESENTATION MARCH 2013 A growing banking and wealth management group with strong regional links. (ASX Code: MYS)
Slide 2: Results Highlights – Financial performance and business strength
MYSTATE LIMITED RESULTS HIGHLIGHTS – INTERIM RESULTS – 31 DECEMBER 2012 Financial performance – earnings For personal use only • Improved statutory NPAT of $14.6m – up 29.8% on 1HY2012 • Improved underlying NPAT of $14.9m – up 8.8% on 1HY2012 underlying result • B ad and doubtful debt expense reduce
Slide 3: Results Highlights – Business improvement
MYSTATE LIMITED RESULTS HIGHLIGHTS – INTERIM RESULTS – 31 DECEMBER 2012 For personal use only Business improvement • MyState banking technology upgrade well progressed • Solid contribution from The Rock with further synergies gained • Significant improvement in TPT performance with growing investor
Slide 4: December 2012 Snapshot
MYSTATE LIMITED 31 DECEMBER 2012 ‘SNAPSHOT’ 1HY DEC 2011 2HY JUN 2012** 1HY DEC 2012 CHANGE (PCP) DEC 11 – DEC 12 For personal use only Statutory net profit after tax ($m) 11.2 12.2 14.6 29.8% Underlying net profit after tax ($m) 13.7 12.6 14.9 8.8% Earnings per share (cents) 16.15 13.76 16.73 3.6%
Slide 5: Earnings per Share and Dividends
MYSTATE LIMITED EARNINGS PER SHARE AND DIVIDENDS EPS metrics impacted by December 2011 acquisition of The Rock For personal use only Interim dividend steady at 14.0 CPS fully franked payable on 5 April 2013 to shareholders on the register at 14 March 2013 Half year earnings (NPAT $m) Half year earni
Slide 6: Group ADI Assets and Liabilities Mix
MYSTATE LIMITED GROUP ADI ASSETS AND LIABILITIES MIX MyState Limited’s securitisation programme performing well and only 24% of gross For personal use only funding requirement The Rock’s reliance on warehouse funding remains a work in progress following the merger – however strong progress has been
Slide 7: Return on Equity (ROE)
MYSTATE LIMITED RETURN ON EQUITY (ROE) Maintain ROE discipline on investment initiatives For personal use only Medium-term returns to be driven by strong ROE and efficiency focus The Rock acquisition in December 2011 impacted 2012 figures MYSTATE LIMITED RETURN ON EQUITY 15% 10% 10.2% 8.5% 8.6% 5% 0
Slide 8: Capital Adequacy
MYSTATE LIMITED CAPITAL ADEQUACY Controlled ‘refinement’ of capital adequacy For personal use only Capital management review completed Potential for Tier 1 / Tier 2 capital rebalancing to fund growth and drive EPS ICAAP updated with reduced board policy limit MYSTATE LIMITED GROUP CAPITAL ADEQUACY 1
Slide 9: Net Interest Margins (NIM)
MYSTATE LIMITED – NET INTEREST MARGINS (NIM) MyState’s NIM decline is attributed to ongoing reduction in personal loan portfolio, For personal use only interest rate reductions (liability re-pricing lag) and competitive pressure The Rock’s NIM increase demonstrates the success of business improvemen
Slide 10: Basel III Compliant
BASEL III COMPLIANT Internal Capital Adequacy Assessment Process (ICAAP) aligned to new For personal use only standards and includes stress testing and capital forecasting Internal Liquidity Adequacy Assessment Process (ILAAP) developed including the use of routine stress testing Liquidity Coverage
Slide 11: Cost Review Project
MYSTATE LIMITED COST REVIEW PROJECT Cost to income remains relatively flat pressured by ongoing reductions in interest For personal use only rates and competition External cost benchmarking review undertaken in May/June 2012 in response to FY 2012 flat cost to income ratio Implementation of cost red
Slide 12: Group Provisioning
GROUP PROVISIONING Conservative lending practices, coupled with strong arrears management, are For personal use only producing results: • Reduced provision requirements • Lower bad and doubtful debt expense • Reduced bad debts written off MYSTATE PERCENTAGE BALANCE IN ARREARS +30 DAYS 1.6% 1.4% 1.2%
Slide 13: MyState provides retail and business banking in Tasmania
For personal use only MYSTATE PROVIDES RETAIL AND BUSINESS BANKING, AGRIBUSINESS AND INSURANCE BURNIE SERVICES TO 120,000 DEVONPORT LAUNCESTON CUSTOMERS IN KINGS MEADOWS NEW NORFOLK TASMANIA. CLAREMONT GLENORCHY NEW TOWN ROSNY HOBART KINGSTON HOBART AND SURROUNDS MyState Limited Investor Presentatio
Slide 14: MyState Key Results as at December 2012
MYSTATE – KEY RESULTS AS AT 31 DECEMBER 2012 For personal use only NPAT of $11.1m declined by 5.1% on previous corresponding period reflecting: • Reducing interest rate environment • Subdued lending conditions Total loan portfolio growth of 3% • Solid sales performance given subdued market •G rowth
Slide 15: Core Banking Platform
CORE BANKING PLATFORM For personal use only Analysis and design phase completed Some minor customer-focused system modification approved Project capital expenditure $6.3m – up from $5.5m to enable necessary customisation Project completion extended slightly to October 2013 to allow for build and tes
Slide 16: The Rock provides retail banking and insurance services
For personal use only THE ROCK PROVIDES RETAIL BANKING AND INSURANCE SERVICES TO CAIRNS 40,000 CUSTOMERS IN QUEENSLAND TOWNSVILLE AND AROUND AUSTRALIA MACKAY EMERALD YEPPOON GRACEMERE ROCKHAMPTON BILOELA GLADSTONE MyState Limited Investor Presentation 15
Slide 17: The Rock Merger Update
THE ROCK MERGER UPDATE For personal use only Synergies: • FTE reduction of 18% • Branch network rationalisation Revenue synergies for year 1 (half year) achieved with year 2 (full year YEJ 2013) on track despite continuing NIM pressures and intense competition Treasury and collections functions cent
Slide 18: The Rock – Key Results as at December 2012
THE ROCK – KEY RESULTS AS AT 31 DECEMBER 2012 For personal use only NPAT of $1.5m compared with loss of $0.1m in previous corresponding period Increased NIM from 1.4% at the time of the merger to 1.8% at 31 December 2012 Loan portfolio reduced by 4.6% due to less activity through brokers • Product e
Slide 19: The Rock's Asset Diversification
THE ROCK’S ASSET DIVERSIFICATION For personal use only The Rock combines strong representation in its home market with good geographic diversification of assets. 0.4% 45.8% 8.8% 2.1% 23.3% 3.5% 16.0% 0.2% MyState Limited Investor Presentation 18
Slide 20: The Rock's Strategy
THE ROCK’S STRATEGY For personal use only Product enhancements and re-structure of broker unit implemented with refined ongoing broker strategy in development Funding synergies remain a work in progress with access to MyState’s Conquest securitisation programme and intra-group funding in place ADI l
Slide 21: Tasmanian Perpetual Trustees overview
For personal use only TASMANIAN PERPETUAL TRUSTEES IS A MAJOR PROVIDER OF ESTATE PLANNING, WEALTH MANAGEMENT, BURNIE INVESTMENT AND DEVONPORT LAUNCESTON TRUSTEE SERVICES KINGS MEADOWS IN TASMANIA GLENORCHY ROSNY HOBART KINGSTON HOBART AND SURROUNDS MyState Limited Investor Presentation 20
Slide 22: Tasmanian Perpetual Trustees – Key Results as at December 2012
TASMANIAN PERPETUAL TRUSTEES – KEY RESULTS AS AT 31 DECEMBER 2012 For personal use only NPAT of $1.9m is up 26.4% from previous corresponding period $34m increase in Funds Under Management in the period – (+ 3.7%) $36m increase in Funds Under Advice in the period – (+ 5.0%) FUNDS UNDER MANAGEMENT AN
Slide 23: Corporate Strategy
MYSTATE LIMITED CORPORATE STRATEGY For personal use only Maintain and grow strong presence in Tasmania • Banking and Wealth Management •C onsolidate and strengthen rural, commercial and SME offerings Continue to execute Rock aquisition strategy including: • Enhanced product, service and channel offe
Slide 24: Group Outlook
MYSTATE LIMITED GROUP OUTLOOK For personal use only he Directors are pleased by the strength of the business that has delivered a strong T half year result in a challenging environment and the progress of cost reduction and business improvement strategies. The continuing uncertainty in relation to t
Slide 25: Summary
MYSTATE LIMITED SUMMARY For personal use only Increased NPAT in difficult operating conditions Sustainable and increasing dividends Lending growth in Tasmania despite subdued markets and intense competition Flat cost to income ratio achieved despite sustained reducing interest rate cycle Low and imp
Slide 26: Disclaimer
DISCLAIMER For personal use only This presentation contains certain forward- the Information), or the accuracy, likelihood of looking statements with respect to the financial achievement or reasonableness of any forecasts, condition, results of operations, business prospects or returns contained in,
Slide 27: For personal use only
For personal use only