Mystate Limited · ASX:MYS
Mystate — UBS Conference 2017
16 slides from Mystate's conference presentation, Nov 13, 2017
Slide 1: UBS Presentation 13-14 November 2017
13-14 NOVEMBER 2017 For personal use only UBS PRESENTATION | 1
Slide 2: Agenda
For personal use only Agenda Melos Sulicich CEO & Managing Director • FY17 Result and Highlights • Corporate History and Strategy • Banking Business • Wealth Business • Sectoral and Economic Outlook • Strategy for Continued Growth MyState are major sponsors of the Hobart Hurricanes UBS PRESENTATION
Slide 3: Highlights
Highlights For personal use only Underlying NPAT below prior year due to NIM compression, with NIM and ROE remaining above peers Executing on business Above system deposit and lending growth with transformation excellent credit quality Strong and efficient capital strategy with multiple RMBS issuanc
Slide 4: FY2017 results
1 FY2017 results For personal use only Total income: Home loan book: $124.6m 1.0% $4.08b 11.3% 1.6x system Above system lending and Customer deposits: 30-day arrears: deposit growth $3.0b 10.1% 0.51% -19bps 1.8x system Capital adequacy ratio: Net profit after tax: 13.3% 25bps $30.1m -3.2% Full year
Slide 5: Corporate history and share price
Corporate history and share price For personal use only The Rock and MyState + Bank merge ADI licenses. The Rock The Rock Building continues as a brand Society joins the + = MyState Limited of MyState Bank 6.00 Group MyState Financial and Tasmanian Perpetual Trustees merge to 5.50 form MyState Limit
Slide 6: Strategic overview
Strategic overview For personal use only MyState’s strategy MyState’s transformation Future benefits The needs and expectations of customers are changing Lendfast and Apply and technology is opening opportunities to attract and COMPLETED: APRIL 2017 serve new customer segments across Australia. Cust
Slide 7: Loan book
Loan book For personal use only Total loan book Total book – composition ($m) $3,544 $3,853 $4,269 growing at 1.8 times 100% $63 $71 system 98% $79 $63 $50 $51 $66 Overdrafts 96% $68 $71 Improved service Business/agri/commercial 94% +11% Personal loans proposition driving +10% +18% Home loans 92% hi
Slide 8: Geographic loan book spread
Geographic loan book spread Continued loan book For personal use only spread with Tasmanian 3 year concentration Geographic spread CAGR below 50% VIC 9.1% 11.9% 13.2% +49.6% NSW 10.0% 11.5% 18.5% +47.7% NT $2.4m 0.1% QLD SA 0.9% 1.2% 1.0% +28.9% $600.7m WA 14.7% $83.2m 2.0% SA WA 2.6% 2.6% 2.0% +10.
Slide 9: Credit quality
Credit quality For personal use only 30+ Days S & P arrears data (Majors and regionals two months behind) 2.50% Credit quality remains excellent 2.00% 1.50% Historically low impairments 1.00% 0.50% 30 day arrears performance 0.51% 0.00% improved in FY17 and remains Dec-15 Dec-16 Jun-15 Jun-16 Jun-17
Slide 10: Funding
Funding Customer deposits ($m) For personal use only +9% +10% $2,988 $2,715 Moody’s rating Baa1/P-2 $2,493 with stable outlook 1,527 1,345 1,397 1,149 1,318 1,461 eSaver product successfully launched in 2H17 enabling FY15 FY16 FY17 customers to open Customer at call deposits Customer term deposits a
Slide 11: Capital
Capital For personal use only Total capital movements 1.90% 1.56% 0.57% 1.40% 1.96% 0.29% 13.3% 13.0% 1.33% 1.61% 2.01% Tier 2 Tier 2 11.43% 11.28% Tier 1 Tier 1 FY16 Capital Profit Dividends paid Capitalised Securitised Secured Other asset FY17 initiatives intangibles assets mortgage growth lending
Slide 12: Wealth Division
Wealth Division Funds under management and funds under advice ($m) For personal use only Funds under Management $782 $778 $738 growth of $81m (+8%) $1,017 $1,008 $1,089 Trustee revenue FY15 FY16 FY17 Challenged but Funds under management Funds under advice improved in 2H17 Operating income ($m) $17.
Slide 13: Sector overview
Sector overview For personal use only System credit growth moderating $ Changing industry Historically low interest rate environment continues dynamics Competition is fierce particularly in lower LVR owner occupied household lending Financial system stability concerns and international issues influe
Slide 14: Tasmanian economy
Tasmanian economy For personal use only 17 consecutive quarters of growth Household spending remains solid Tourism continues to be a key driver Leading wage growth (2.2%) Property prices, rental yields high Population growth beginning to climb UBS PRESENTATION | 14
Slide 15: Platform for continued growth
Platform for continued growth For personal use only What we’ve achieved What we’re working on What’s to come Digital Cost efficiencies Simplification transformation • MyExcellence program to • Internet and mobile banking • ‘MyExcellence’ productivity and streamline processes and • Contact centre sys
Slide 16: Disclaimer
Disclaimer For personal use only Summary Information This Presentation contains summary information about MyState 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 not purp