Mystate Limited · ASX:MYS
Mystate — Investor Presentation (February 2020)
22 slides from Mystate's investor presentation, Feb 21, 2020
Slide 1: MyState Limited Investor Presentation
MyStateW Limited Investor _ Presentation
Slide 2: Highlights & strategy
Highlights & strategy Financial results Strategy & outlook
Slide 3: Melos Sulicich
Melos Sulicich
Slide 4: Key highlights
Key highlights i= @zs FINANCIAL +5.4% Net profit after tax DIGITAL ae Customer uptake of internet and mobile banking increasing +9.1% Net interest income customer transactions 8 9% performed online or ona mobile device MyState¥ Half Year Investor Presentation Limited = CUSTOMER +40 Strong and consis
Slide 5: Key metrics and performance drivers
MyState¥ Half Year Investor Presentation Limited Key metrics and performance drivers FINANCIAL PERFORMANCE Change* STRONG 1H PROFIT AHEAD OF 1H19 Net profit after tax!: $15.1m A 5.4% driven by solid uplift in total operating income Earnings per share: 16.5/7cps A 4.4% INCREASED NET INTEREST INCOME P
Slide 6: We are building a digital business attracting and engaging customers
MyState¥ Limited We are building a digital business that attracting and engaging customers Growing contribution from digital [a] 62% increase in online 89% of all customer transactions customer growth performed online or on a mobile device Leading customer advocacy and product offerings Bonus Saver
Slide 7: Financial Results
Financial Results
Slide 8: Results summary
MyState¥ Half Year Investor Presentation Results summary fi aes . Net interest income ($m) 48.16 44.15 +9.1% Positive jaws in 1H with income growth Total operating income ($m)! 63.34 59.36 +6.7% exceeding cost growth leading to a Operating expenses (excl. BDD) ($m)' 41.12 39.23 +4.8% lower cost to N
Slide 9: MSB captures funding tailwinds
MyStateW Half Year Investor Presentation Limited MSB captures funding tailwinds ——BBSW1M Index BBSW —BBSW3M Index (~ | Net interest margin up +3bps on 2H19 Continued fall in wholesale funding costs Narrowing of BBSW-OIS spread contributed 10bps 0.50% == == 22-22 a nnn nnn nnn nnn nn nnn nnn nen TD r
Slide 10: Operating expenses bridge ($ Millions)
42 42 $ Millions 41 41 40 40 39 39 38 1H19 Personnel Restructuring Technology Occupancy Marketing Other 1H20
Slide 11: Net profit after tax
Net profit after tax 20 19 $ Millions 18 17 16 15 14 13 12 11 10
Slide 12: 2.50 2.00 1.50 1.00 2H 0.50 1H - ¹
2.50 2.00 1.50 1.00 2H 0.50 1H - ¹
Slide 13: High credit quality
MyState¥ Limited High credit quality Consistent focus on lower LVR loans with high asset quality Uptick in arrears has lead to an increase in impairment provisions 30 and 90 day arrears well below industry Impairments remain at historic lows 30+ Days S&P Arrears Data 3.00% poeoecesceestcetetceeetcee
Slide 14: Customer funding
Customer funding Va Funding mix enhanced by lower cost at call customer deposits Programmatic RMBS issuance continues to be well supported by broad investor base Moody's Baa1/P2 stable investment grade rating Retail funding costs continuing to fall off the back of lower wholesale funding rates Bonus
Slide 15: Capital ratio movement
18% 16% 14% 12% 10% % 8% 6% 4% 2% 0% FY19 Capital initiatives Securitised Profit Dividends paid Mortgage Capitalised Other asset 1H20 assets lending intangibles growth
Slide 16: TPT Wealth: Funds Management and Trustees
TPT Wealth Va XX Net FUM growth to decade high of $1.19b Wealth revenue increased 5.1%* on pcp due to higher trustee fees and funds management revenue Rebranding of Wealth operations as TPT Wealth and launch of new investor portal supporting plan for national growth Outsourced registry and funds adm
Slide 17: Strategy & Outlook
Strategy & Outlook Melos Sulicich
Slide 18: It's a great time to be a small, 'clean' bank
• • • • It’s a great time to be a small, ‘clean’ bank
Slide 19: Our strategic priorities
MyStateW Half Year Investor Presentation Limited Our strategic priorities » >) Our GOAL is to be Our STRATEGY is focused on Simple, relevant and easy to “use” Dicitall bled so that (~N, Growing and automating our bank stoect x tein he ad “ can Yaa) operations, increasing our digital customers we are
Slide 20: 1H FY20 Outlook
MyState ¥ 1H FY20 Half Year Investor Presentation imi Outlook Revenue growth through: Significant robotics technology now in use with more to come reducing * Bank balance sheet growth : operating costs. fl * Focused margin management * FUM growth via mainland distribution Re-engineering cost base, i
Slide 21: 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 22: Disclaimer
MyStateY Limited 1 H FY20 Full Year Investor Presentation 22 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 Presentat