Mystate Limited · ASX:MYS
Mystate — Investor Presentation (February 2021)
26 slides from Mystate's investor presentation, Feb 19, 2021
Slide 1: Investor Presentation
MyStateLimited W Investor Presentation The human way to bank Now here. Enhanced customers. With added auto-saver feature. MyState Bank — personalised banking campaign - August 2020
Slide 2: Key highlights
Key highlights Financial results COVID-19 Strategy & outlook
Slide 3: Key highlights
Key highlights The human way to bank Now here. Enhanced customers. With Ape: feutog saver feature. MyState Bank — personalised bank 020
Slide 4: Key highlights
Limited Key highlights FINANCIAL CUSTOMER INITIATIVES DELIVERED +18.8% Core earnings"? +12.6% Net profit after tax -340bps Cost-to-income ratio? +5.1% Customer deposits? +65bps 12.5cps Fully franked dividend Return on average equity Note: Financial performance figures compare 1H21 to 1H20 as the pre
Slide 5: Financial Results
Financial Results Results summary Performance - NPAT bridge - Funding - Operating costs Loan book Capital TPT Wealth The human way to bank Introducing, the next- MyState Bank — personalised bankin. , smart-spending shopper. campaign - August 2020
Slide 6: Results summary
MyState 7 Half Year Investor Presentation imi Results summary * Strong top line momentum with NIM continuing to . Net interest income ($m) 55.4 48.2 +15.0% & benefit from lower funding costs. Total operating income ($m) 68.6 63.3 485% A * Positive “jaws” with Operating expenses (excl. BDD ) ($m)! 42
Slide 7: NPAT bridge
MyState¥ Half Year Investor Presentation Limited NPAT bridge * NPAT growth of 12.6% and Underlying NPAT growth * Net bad and doubtful debts write-back of $0.4m in of 19%. 1H21 reflects a reduction in the forward looking overlay due to the significantly improved economic + Net interest income grew 15
Slide 8: MyState Bank net interest margin expansion
MyState¥ Half Year Investor Presentation Limited MyState Bank net interest margin expansion NIM Trend + Net interest margin up +6bps on 2H20. H 1.88% 1 1.94% * Home loan market remains highly competitive. 1.81% 1.79% } 1.82% : H H H * Continued fall in wholesale funding costs. i * TD rates falling a
Slide 9: Funding
Funding + Lower cost Customer deposits were up 5% on 30 June 2020. + Significant growth in the award winning Bonus Saver Account (+210% on 30 June 2020) driven by digital acquisition of new customers. * Retail funding costs continued to fall off the back of lower wholesale funding rates. * Some cust
Slide 10: Operating costs
MyState¥ Operating costs * Operating costs (before restructure costs) increased 2.7% on pcp driven by increased investment in capability, digitisation and marketing. * Increased investment in marketing of $0.4m, up 15% on pcp. * Restructure costs of $2.5m relate to the closure of branches in Central
Slide 11: High quality, low risk loan book
MyState¥ Limited High quality, low risk loan book * Total loan book grew 5.5% on 31 December 2019. Home loan book grew at 1.7x system (+6.2%) on 31 December 2019 Home loan applications and settlements up c.10% and 24% respectively on pcp, partly offset by higher discharges and principal repayments.
Slide 12: Well capitalised
MyState 7 Half Year Investor Presentation Well capitalised * Capital ratios comfortably above regulatory minimums, providing headroom for further growth. * Capital position supported by earnings growth and securitised funding. * Effective capital strategy underpinning growth and investment in digita
Slide 13: TPT Wealth
MyState¥ Half Year Investor Presentation Limited TPT Wealth Funds under management ($m) + Net FUM growth of 3.2% from 30 June 2020 to $1.103b driven by income funds. * Wealth revenue decreased 15.9% on pcp (and 6.8% on 2H20) due to lower trustee fees and funds management ; revenue (the latter partly
Slide 14: COVID-19
COVID-19 The human way to bank
Slide 15: COVID-19 assistance to customers
MyState¥ Half Year Investor Presentation COVID-19 assistance to Total loans with assistance (facilities, no.) 1,739 me 371.463 1,385 0 196 195 818 , 175 des) 1,330 1,267 2 30199 Jun Jul. = Aug. Sep-Oct Dec 15 Feb ™ Defer Repayments ™Reduce Repayments/ Change to Interest Only Home lending assistance
Slide 16: Provisions and coverage ratios
MyState¥ Limited Half Year Investor Presentation Provisions and coverage ratios Loan provisioning assumptions updated for the improved economic outlook Total collective provisions and GRCL ($m) Total Provision Coverage Ratio (Collective and GRCL) 0.70% 0.64% a 0.36% aa 0.26% 0.26% 0.24% 0.13% 0.10%
Slide 17: Strategy and outlook
Strategy and outlook Sector overview Strategic priorities Outlook All-new relaxed customer. Now with savings detection. MyState Bank — personalised banking campaign — August 2020 The human way to bank
Slide 18: Sector overview
MyState 7 Half Year Investor Presentation Sector overview Industry dynamics Regulatory dynamics * Key themes shaping the year ahead: + APRA and ASIC have reactivated their change agendas following a period of economic stability * The Australian economy rebounded more post COVID-19 impacts. strongly
Slide 19: Strategic priorities
Strategic priorities Current strategy Driven by a strong focus on customer outcomes and significant growth opportunities. Increased investment in marketing. Focused on growing organisational capability, simplifying and streamlining the business through continuous improvement and the use of automatio
Slide 20: Continued migration to digital
MyState¥ Limited Continued migration to digital Best in class Al insights in MyState Bank app generating over 1.5m insights per month. Digitisation of back office processes continues to increase scalability. Customer uptake of internet and mobile banking continues to increase. Bonus Saver awarded 5
Slide 21: Outlook
Outlook MyState¥ Limited Half Year Investor Presentation Revenue growth * Accelerated bank customer and balance sheet growth — doubling bank BDM’s * Disciplined margin management. * Income Fund growth via Mainland distribution. * Increased marketing spend to enhance MSB retail funding and TPT Wealth
Slide 22: Appendix
Appendix High credit quality COVID-19 economic outlook and scenario weightings The human way to bank Here ae you ¥ pies life's a little unbalanced. MyState Bank — unbalanced world campaign - July 2020
Slide 23: High credit quality
High credit quality * Consistent focus on lower LVR loans. Successful participation in the FHLDS has driven >90% LVR growth. 30 and 90 day arrears well below industry. * Impairments remain at historic lows. Further detail provided in COVID-19 section. / — Group 30+ Days S&P Arrears Data (Majors and
Slide 24: COVID-19 economic outlook and scenario weightings
Dec-20 35% 50% 15% Strong recovery Base case Moderate recession Base case Strong recovery Moderate recession 1.62 4.18 4.45 3.36 (1.96) 100% Base case 100% Strong 100% Moderate Probability weighted recovery recession -collective provision
Slide 25: Glossary
Glossary 1H: First half of financial year 2H: Second half of financial year ADI: Authorised deposit-taking institution APRA: Australian Prudential Regulation Authority Avg: Average ASX: Australian Securities Exchange BBSW: Bank Bill Swap Rate BDD: Bad & Doubtful Debt Expense bps: basis points CAGR:
Slide 26: Disclaimer
MyStateY 1 H FY21 Half Year Investor Presentation26 Limited Disclaimer Summary Information Future Performance This Presentation contains summary information about MyState and its activities This Presentation may contain "forward-looking" statements including current as at the date of this Presentati