Slide 1: Results
results 23 February 2023 ©
Slide 2: Agenda
Overview and highlights Brett Morgan Managing Director & CEO Outlook Brett Morgan Managing Director & CEO Agenda 4 Financial results Gary Dickson Chief Financial Officer Appendices
Slide 3: Overview and highlights
Overview and highlights Brett Morgan Managing Director & CEO 1
Slide 4: Our purpose
% < Our purpose 90? Srowty sayy We're a Tasmanian based financial services %, & company with big ambitions. We make %,, & 5 ; aS managing your money easy, to help you achieve "deliver usta what matters most. We invest in our people and communities, so together we can thrive. MyStateLimited W
Slide 5: For all stages of your financial life
For all stages of your financial life MyState is a provider of banking, trustee and wealth management services to over 170,000 customers and clients across Australia through its retail brands - MyState Bank and TPT Wealth. [ | I | Transaction accounts Savings accounts Home lending Commercial lending
Slide 6: 1H23 highlights
1H23 highlights Record half year NPAT Second fastest growing home lender’ $7.6b $6.3b $20.1m Home loan book Customer deposits NPAT +10.5% growth +13.5% growth +20.7% on pcp 4.3x system? 2.6x systems Highest half year result on record 14,500 63.2% 9.2% New to bank Cost to income ratio Return on equit
Slide 7: Winning at home and on the eastern seaboard
Winning at home and on the eastern seaboard vs. pcp! Home loan book growth Customer deposits growth New to bank customer acquisition NSW +13% +17% +53% QLD +10% +7% +43% VIC +21% +17% +78%
Slide 8: Financial results
Financial results Gary Dickson Chief Financial Officer 2
Slide 9: 1H23 positive financial momentum
1H23 positive financial momentum * Core earnings up 36.7% to $30.3m * NPAT up 20.7% to $20.1m * NIM down -6bps on pcp but up 14bps on 2H22 reflecting margin recovery due to the rising rate environment * Positive “jaws” with strong income growth * Cost to Income ratio decreased 558bps to 63.2% * Retu
Slide 10: Highest half year NPAT on record
Highest half year NPAT on record Net profit after tax ($m) 1 Increase 0.1 3.2 0.5 — . HM OoDecrease ZZ 6. Le 20.7% increase 1H22 Statutory Net interest Other banking Wealth Operating Net bad and Gain on Income tax 1H23 Statutory NPAT income income management expenditure doubtful debts __revaluation/
Slide 11: Operating costs well managed
Operating costs well managed Operating costs increased by 6.6% driven by higher personnel and volume related costs Marketing up $0.3m or 4.1% on pcp due to ongoing investment in building the MyState brand on mainland Australia as well as customer acquisition focused activities Uplift in Other expens
Slide 12: MyState Bank
MyState Bank
Slide 13: NIM a reflection of market competition
NIM a reflection of market competition * Net interest margin up 14 bps on 2H22, reflecting growth in the home loan book and positive leverage to a rising cash rate * Lending market remains highly competitive * Funding costs impacted by the competition for retail deposits and widening credit spreads
Slide 14: Record growth in settlements driving loan book growth
Record growth in settlements driving loan book growth * Record home loan settlements for a half; $1.57b up 5.9% on pcp * Home loan portfolio up $2.1b (or 39%) since 30 June 2021 to $7.6b * Home loan book continues to grow well above system (+10.5% on 30 June 2022, over 4.3x system) * Improving run-o
Slide 15: • • • • • >90% 85%-90% 80% - 85% <80%
• • • • • >90% 85%-90% 80% - 85% <80%
Slide 16: Prudent loan provisioning
Prudent loan provisioning Credit provisions ($m) COVID impacted 6.1 5.9 5.4 * — Increase in total collective provisions consistent with rising 45 arrears in an increasing interest rate environment aa * Provision coverage ratios are consistent with pre COVID-19 12 tet levels 07 0.9 * Forward looking
Slide 17: Continued growth in customer funding
Continued growth in customer funding * Customer deposits up 13.5% since 30 June 2022 to $6.3b and up 41% since June 2021 Funding mix (%) * Continued growth in the award winning Bonus Saver Account (+17.6% on 30 June 2022) * Customers moved towards term style products over the half in response to the
Slide 18: Ongoing diversification of capital base
Ongoing diversification of capital base * Total capital ratio up 173bps * — Effective capital strategy underpinning lending growth * Further capital flexibility has been provided by inaugural Additional Tier 1 issuance in August 2022 * — First public RMBS transaction since 2019 in December 2022 Capi
Slide 19: Capital under Basel III framework
Capital under Basel III framework + APRA‘s new bank capital framework requirements are effective from 1 January 2023 + Using the 31 December 2022 capital position, on a pro-forma basis, the Total capital ratio likely to be approximately 130 bps higher + The 1% increase in the counter-cyclical capita
Slide 20: TPT Wealth
TPT Wealth
Slide 21: TPT Wealth delivering income diversification
TPT Wealth delivering income diversification Wealth operating income steady on pcp Operating income ($m) Trustee services income higher on pcp (+5.3%) 70 7.3 75 Investment Services management fees modestly lower on pcp on lower FUM 24 2.5 27 Commercial lending fees higher on pcp on improved originat
Slide 22: TPT Wealth positioning for FUM growth
TPT Wealth positioning for FUM growth Funds under management ($m) Benefits of increased allocation to direct mortgages -3.0% 1,103 1,105 1,088 4,062 eso Increased management fee income ! on growing TPT FUM balance f f f f f f f f f f f f f f f f f Dec 20 Jun-21 Dec-21 Jun-22 Dec-22 TPT Wealth asset
Slide 23: Outlook
Outlook Brett Morgan Managing Director & CEO
Slide 24: ESG
ESG For MyState, being sustainable is about how we create value for our stakeholders over the long-term 6 ESG topics matter most to us: Governance, A Digital Ipi ’ aamanes ean Environmental enablement He ping am Community sustainabilit and data people be investment culture y their best security Prog
Slide 25: Outlook
Outlook Based on current conditions, we are targeting to achieve the following!: Short term Update FY23 31 Decem 22 0 0 0 MyState Bank lending Lending growth >2x system ‘Y)- MyState Bank deposit composition Customer deposits >65% of funding 73.1% [u Earninas per share Cumulative growth of 30% over 3
Slide 26: Why MyState?
Le [® Why MyState? Comprises a fast growing bank and a trusted wealth management business Proven and consistent financial performance wv Trusted Tasmanian brand with strong market share and 0 U O leading advocacy s ¢ ‘Y)- Delivering on growth strategy 26
Slide 27: Appendices
Appendices 4
Slide 28: Corporate profile
Corporate profile MyState is a provider of banking, trustee and wealth management services to over 170,000 customers across Australia through its retail brands —- MyState Bank and Ratings TPT Wealth. MyState listed on the ASX in 2009. Moody's MyState has a market capitalisation of ~$430m (as at 21 F
Slide 29: 2025 growth strategy
2025 growth strategy Our ambition is to grow our share in deposits, lending and FUM MyStateBank TPTE WEALTH Core offering Key channels Distribution & service Everyday banking Lending * Transaction accounts » Home Loans * Saving accounts * Investment Loans * Term deposits Digital Brokers Branches (TA
Slide 30: Focusing on community
Focusing on community MyState Bank Arena Naming rights sponsorship of the new home of entertainment and sport in Tasmania. Tasmania JackJumpers Principal partner of the Tasmanian JackJumpers helping make genuine community connections all around Tasmania a MyState Foundation Over 20 years of supporti
Slide 31: Expenditure breakdown ($m)
Expenditure breakdown ($m) 60 50 40 30 20 10 Expenditure 48.8 47.1 42.2 42.7 5.8 45 3.1 35) 13 12.7 12.4 19.8 21.1 21.7 1H21 2H21 1H22 2H22 mPersonnel costs mOther s=Technology Marketing 52.0 61 1H23 Expense growth of 6.6% in 1H23 in line with previous guidance. Personnel costs were 10.5% higher ref
Slide 32: Home loan book growth
Home loan book growth Loan balance & lending flows $b 0.3 16 kw |= mem 1) Increase 7.6 HM Decrease Jun-22 New Funding Discharges Redraw & Repayments Dec-22 Interest Home loan book composition ($b) 7.6 6.8 0 5.4 5.1 1.0 0 08 , 5.4 75%| 4.2 Jun-20 Jun-21 Jun-22 Dec-22 @) mOwn. Occ. P&l minv. P&l = Inv
Slide 33: Forward looking economic overlay assumptions
Forward looking economic overlay assumptions Assumptions Unemployment (year ended) Base Case Strong Recovery Moderate Recession Cash Rate (year ended) Base Case Strong Recovery Moderate Recession House Prices (yoy movement) Base Case Strong Recovery Moderate Recession June 23 3.50% 3.25% 4.00% 3.60%
Slide 34: Fixed rate home loan profile
Fixed rate home loan profile New HL flow - fixed rate issuance $533m $294m $249m $178m $113m $72m $24m || $23m —= — 6mthsto 6mthsto 6mthsto 6mthsto 6mthsto 6mthsto 6mthsto 6 mths to Jun19-Dec19— Jun20.- Dec20. = Jun21. Dec21.— Jun22,— Dec 22 Fixed rate issuance composition 4% ¢ li | Oe ; 85% e 69%)
Slide 35: Board
Vaughn Richtor (Board Chair) Commenced September 2019 Group Risk Committee Group Audit Committee Group People Remuneration & Nominations Committee Group Digital and Marketing Committee Sibylle Krieger Commenced December 2016 Group People Remuneration & Nominations Committee (Chair) Group Risk Commit
Slide 36: Management team
Management team A da Janelle Whittle GM People, Community & Public Affairs Brett Morgan Gary Dickson Managing Director Chief Financial Officer & CEO a Huw Bough Paul Moss GM Banking Chief Operating Officer Chief Risk Officer Mandy Khanna 5 A) «» Alan Logan Tim Newman GM Wealth Head of Transformation
Slide 37: 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 38: Disclaimer
Disclaimer Summary information The material in this Presentation is general background information about MyState Limited (ABN 26 133 623 962) and its activities current as at the date of this Presentation. The information is given in summary form and does not purport to be complete or comprehensive.