Slide 1: Full Year 2020
Full Year 2020
Slide 2: Highlights
Highlights Financial results COVID-19 Strategy & outlook
Slide 3: Key highlights / Results
Melos Sulicich Key highlights Results
Slide 4: Key highlights
MyStateW Full Year Investor Presentation Limited Key highlights FINANCIAL CUSTOMER RESPONSE TO COVID-19 * More than 1,800 personal and +1 0% -3.0% goo business customers provided with a Net profit aftertax Net profit after tax / comprehensive range of support (continuing operations)" (statutory)! me
Slide 5: Key metrics and performance drivers
Key metrics and performance drivers STRONG CORE EARNINGS GROWTH driven by solid uplift in net interest income NET PROFIT AFTER TAX down 3% on statutory pcp but up 0.9% on continuing operations basis when excluding profit impact of FY19 sale of financial planning business COST TO INCOME RATIO down 1.
Slide 6: Results summary
Gary Dickson Results summary Performance - Funding - Operating Costs - NPAT Loan book Credit profile Funding and capital Wealth
Slide 7: Full Year Results summary
MyState¥ Limited Full Year Investor Presentation Results summary Change 2Hv1H P| veto | vee | a) me ame Total operating income ($m) 128.9 120.4 +7.0% A +3.4% Top line momentum, with NIM +é6bps on Operating expenses (excl. BDD) ($m) 81.0 78.0 +3.8% A 41.1 39.8 -3.1% pcp benefitting from significantly
Slide 8: MSB captures funding cost decrease
MyStateW Full Year Investor Presentation Limited MSB captures funding cost decrease BBSW == RBA cash rate reduction ( ~ Rapid fall in BBSW and significant decrease in funding costs during 2H20 ——BBSW 1M Net interest margin up 6bp on pcp Lending market remains highly competitive / Jul18 = Oct18 = Jan
Slide 9: Operating costs
MyStateW Full Year Investor Presentation Operating costs Operating cost increased by 3.8% led by increased investment in capability, digital and marketing One off costs absorbed during the year including brand investment and costs relating to COVID-19 Personnel costs and FTEs continue to be carefull
Slide 10: NPAT bridge
MyStateW Full Year Investor Presentation Limited NPAT bridge (— >) NPAT decline of 3.0% on statutory pcp but up 0.9% on continuing operations basis when excluding profit impact of FY19 sale of financial planning business Net interest income up strongly on pcp benefiting from lower funding costs part
Slide 11: Solid growth, low risk loan book
MyStateW Full Year Investor Presentation Limited Solid growth, low risk loan book Loan book grew well above system during FY20 led by home lending (1.7x system; +5.1% on pcp) with strong 2H applications and settlements Meaningful participation in First Home Loans Deposit Scheme (FHLDS) with 985 plac
Slide 12: High credit quality
MyStateW Full Year Investor Presentation Limited High credit quality Home loan book - LVR profile ($b) ( $0.35 Consistent focus on lower LVR loans $0.20 85%-90% | 21% $020 $0.37 $0.34 | While impairments have risen, 99% of home mein 5 loan book arrears are 30 days or less and - considered performing
Slide 13: Customer funding
Customer funding Funding mix continues to be enhanced by growth in lower cost at call customer deposits (+24.7% on pcp) Customer deposits grew above system (+7.6% on pcp) Programmatic RMBS issuance continues to be well supported by broad investor base Current Moody's Baa1/P2 rating on review for dow
Slide 14: Well capitalised
MyState¥ Full Year Investor Presentation Limited Well capitalised Capital ratios comfortably above regulatory minimums Capital position supported by earnings growth and securitised funding Effective capital strategy underpinning growth and investment in digital capability Reviewing alternatives to i
Slide 15: TPT Wealth
TPT Wealth Va Net FUM $100m lower to $1.07b, impacted by COVID-19 market adjustment and investor sentiment Wealth revenue increased 1.3%* on pcp due to higher trustee fees and funds management revenue Positive customer response to new funds management investor portal and rebranding of wealth operati
Slide 16: COVID-19
oO a > O O
Slide 17: COVID-19 assistance to customers
MyStateW Full Year Investor Presentation Limited COVID-19 assistance to customers MEASURES ASSISTANCE PROVIDED Loans that have been provided assistance due to COVID-19 as at 30 June: * Loan deferrals of up to 6 months — with a check-in at 3 Total balance of COVID-19 assistance ($m) months Assistance
Slide 18: Provisions and coverage ratios
MyStateW Full Year Investor Presentation Limited Provisions and coverage ratios Total collective provisions and GRCL ($m) Loan provisioning strengthened for 9.1! the potential impact of COVID-19 6.3 Total Provision Coverage Ratio 5.1 (Collective and GRCL) 0.7% 4.4 2.4 27 0.4% 0.4% |) . 0.3% 0.3% Dec
Slide 19: COVID-19 economic outlook and scenario weightings
MyStateW Full Year Investor Presentation Limited COVID-19 economic outlook and scenario weightings Housing prices (%) -14% weights — $2.5m 12% Scenario weightings -10% & a -6% 4% -2% 0% Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar21 Jun21 Sep 21 Dec 21 Dec-19 15% 70% 15% mStrong recovery mBase case ™ Mode
Slide 20: Strategy & Outlook
Strategy & Outlook Melos Sulicich Community and Tasmanian economy Sector overview Strategic priorities Outlook
Slide 21: Community and Tasmanian economy
Limited We make a genuine difference to our customers and communities every day MyState Foundation Football Tasmania Empowering youth Grassroots support $2 3 M Support to reboot . football and get in grants to help more than 130 9,000 not-for-profit Tasmanian kids organisations back into the game My
Slide 22: Sector overview
MyStateW Full Year Investor Presentation Limited Sector overview Industry dynamics Key themes shaping the ‘COVID-19 impacted’ year ahead Regulatory dynamics itz Impact of COVID-19 has further heightened regulatory intensity * Slowing economy and rising unemployment likely to and scrutiny... mean a s
Slide 23: Our strategic priorities
MyStateW Full Year Investor Presentation Limited Our strategic priorities Our Strategy ab) Our purpose is to help people MyStateBank © achieve their + Grow and automate bank operations dreams + Increase digital capabilities + Build our brand to ultimately grow our balance sheet + Attract and deepen
Slide 24: Continued migration to digital
MyStateW Limited Continued migration to digital DIGITAL HIGHLIGHTS Launch of world class Al insights in MyState Bank Digital transactions (#m) app 29 wee ~ + 25 2.5 Digitisation of back office processes increases 23 scalability . | a | Customer uptake of internet and mobile banking n @ 27% continues
Slide 25: Banking on the future
MyStateW Full Year Investor Presentation Limited Banking on the future @ @) Ww we WS 4 we Nov 2013 Apr 2017 May 2017 Jun 2017 Feb 2018 Dec 2019 Feb 2020 Jun 2020 Aug 2020+ + MSB Core = CRM * Core system + Contact + New * Online + TPT Wealth + Al powered + Open Banking - system + Origination consolid
Slide 26: TPT Wealth - investing for the long game
MyStateW Limited Full Year Investor Presentation TPT Wealth - investing for the long game Jun 2019 + Sale of retail Financial Planning business » Rebranded to TPT Wealth + Outsource of fund unit registry * Outsource of fund administration » Fund product simplification 1H20 2H20 investor portal * Lau
Slide 27: Outlook
MyStateW Full Year Investor Presentation Limited Outlook REVENUE GROWTH CHANGE Increased marketing spend to enhance MSB retail funding and TPT Wealth FUM growth Bank balance sheet growth Disciplined margin management Further fund product rationalisation. FUM growth via Mainland distribution. Enhance
Slide 28: 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 29: Profile of customers provided COVID-19 assistance
Profile of customers provided COVID-19 assistance Total portfolio arrears
Slide 30: COVID-19 profile of customers provided assistance
MyStateW Full Year Investor Presentation Limited COVID-19 profile of customers provided assistance Home Loan LVR Breakdown Total COVID-19 Loans 20.52% _~ 5.12% \2.75% =<=80% = 80.01- 85% = 85.01-90% =90% + 96.84% Purpose & Repayment Type $462.2 500 aS mPal m0 & $400 = $300 m Housing = Personal Loans
Slide 31: 0% 5% 10% 15% 20% 25% 30% 35% 40%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Slide 32: COVID-19 profile of customers provided assistance
MyStateW Full Year Investor Presentation Limited COVID-19 profile of customers provided assistance Number of Advance Payments Age of Loan $350 4» $180 $169.3 é $294.5m 6 $160 § $300 = $140 $127.0 S $250 $120 $102.9 $200 $164.2m $100 $150 $80 $67.8 $65.2 $100 SOO" $42.4 $50 $44.8m $33.0m = $23.2m $71
Slide 33: COVID-19 profile of customers provided assistance
MyStateW Full Year Investor Presentation Limited COVID-19 profile of customers provided assistance Average balance of loans with COVID- 4 Assistance ($ State Ail tending ACT 328,220 328,220 NSW 507,846 22,861 615,714 501,896 NT 457,070 20,962 239,016 The average loan balance for QLD 344,087 22,798 1
Slide 34: Total portfolio arrears
MyStateW Full Year Investor Presentation Limited Total portfolio arrears Home loan arrears . ° 1.00% The increase since Mar 20 partly Home loan arrears profile (%) reflects the focus of the collections team on COVID-19 0.80% customer assistance. Resourcing >99% of home loan book arrears is 5 of the
Slide 35: Disclaimer
MyStateY FY20 Full Year Investor Presentation 35 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 Presentation.