19 August 2024 –
MyState Limited has delivered an FY24 net profit after tax result of $35.3million, surpassed $8.0 billion in lending, welcomed over 14,000 new to bank customers and successfully launched its new internet and mobile banking platforms while controlling costs.
The Board has declared a stable final dividend of 11.5 cents per share (cps), taking the full year dividend to 23.0 cps, representing the mid-point of the MyState target payout ratio range.
Concurrently, MyState has signed a scheme implementation agreement to merge with Auswide Bank (ASX: ABA).
The proposed merger is expected to be EPS accretive from FY26 on a post synergies run rate basis.
Key highlights in FY241:
Home lending up 2.0% to $8.0 billion
New to bank customers 14,100
Net promoter score (NPS) up 23 points to +58
Total operating costs down 1.6% to $101.0 million
Net profit after tax (NPAT) of $35.3 million, down 8.3%
Total capital ratio up c.100 bps to 16.4%
Stable final dividend of 11.5cps, full year dividend of 23cps
Net Interest Margin (NIM) 1.45% stable half on half
Improved performance in Trustee Services business
Successfully launched new internet and mobile banking platforms Managing Director and CEO Brett Morgan said, “MyState Limited managed the balance between growth and margin well in FY24 and our focus on extracting efficiencies and expense management delivered a reduction in operating costs in an inflationary environment.
”“We have maintained our focus on growing profitably while delivering on a range of important strategic initiatives including the launch of a new internet and mobile banking experience and an expanded Trustee Services offering.
Along with efficiency initiatives delivered across the Group which supported a reduction in total operating costs, we have set strong foundations which will help to drive profitable growth into the future.”
“Pleasingly, we attracted more than 14,000 new to bank customers during FY24.
Customer advocacy significantly increased over the year, with our NPS lifting to +58, reflecting our continued customer focus.”
1 Relative to prior corresponding period (pcp)s
ASX ANNOUNCEMENT19 August 2024
ASX: MYS“We are also happy to report that credit quality remains sound. Bank arrears rates continue to be below industry average, and we continued to work closely with customers experiencing financial hardship.”“During FY24, TPT Wealth delivered stronger revenue off a lower cost base.
As a result, it contributed positively to the Group’s financial performance.”MyState’s capital position has strengthened with a total capital ratio of 16.4% at 30 June 2024, up from 15.4% at 30 June 2023, providing capacity for future investment and growth.
The MyState Board has declared a final dividend of 11.5 cps, taking the total dividend for the financial year to 23.0 cps, representing a payout ratio of 72%.
The dividend is fully franked and is payable on 16 September 2024.
The Dividend Reinvestment Plan (DRP) will be offered to shareholders for the final dividend with an election date of 26 August 2024.
DRP shares will be issued at no discount to the volume weighted average price for the period 27 August to 2 September 2024 inclusive.
MyState signs proposed merger with Auswide
Key highlights:
MyState Limited (MyState) has signed a scheme implementation agreement(SIA) to merge with Auswide (the Proposed Merger)
Under the Proposed Merger, Auswide shareholders will receive 1.112 New MyState shares per Auswide share, implying 65.9% pro forma ownership of the combined group for existing MyState shareholders 2
The Proposed Merger is expected to deliver strong value accretion and be EPS accretive from FY26 on a post synergies run rate basis The combination of two high-quality, complementary businesses will deliver significant scale, contributing to improved operating efficiency from a larger balance sheet and increased funding flexibility
Targeting implementation in mid-to-late December 2024, subject to customary regulatory, Auswide shareholder and third-party approvals Mr Morgan said, “In addition to delivering a solid FY24 result and executing on important strategic initiatives, I am delighted to announce that MyState has today signed a scheme implementation agreement to merge with Auswide Bank. The combination of two high-quality and complementary businesses is consistent with our stated growth strategy and brings significant scale advantages to the Group. We expect significant cost synergies from the merger, which we also expect to beEPS accretive for MyState shareholders from FY26 on a post synergies run rate basis.
The scheme, which is subject to the customary regulatory, Auswide shareholder and third-party approvals, is expected to become effective in mid-to-late December 2024.”MyState’s Chair Vaughn Richtor said, “We look forward to the value creation arising from merging two sound customer focused businesses with long histories of serving their local communities.
i hold both ABA and MYS ( luckily in the same portfolio )
hmmm that is one way to simplify that portfolio
