MyState Posts 17% Profit Rise and 62% Loan Growth After Auswide Deal

Merger Completion and Financial Growth

MyState Limited has marked a strong start to its post-merger journey with Auswide Bank, reporting a 17% increase in underlying profit after tax to $41.3 million for FY25. This growth comes just four months after the merger's completion, underscoring the combined group's ability to rapidly integrate and capitalize on scale. Total operating income climbed 22.4% to $186.6 million, reflecting expanded business activity and customer engagement.

The merger has significantly expanded MyState's footprint, now serving over 275,000 customers along Australia's eastern seaboard. The home loan portfolio swelled by 62% to $12.9 billion, while customer deposits jumped 71% to $10.1 billion, signaling strong market acceptance and trust in the enlarged group.

Synergies and Integration Progress

Operational efficiencies are already materializing, with $8.4 million in annualised synergies realized within the first four months. These gains stem from streamlined governance, consolidated group functions, and shared services efficiencies across audit, insurance, property, and procurement. MyState's management remains confident in achieving the targeted $20-$25 million in annual pre-tax cost synergies over the next three years, primarily through further integration of banking licenses and core systems.

Cost discipline is evident despite merger-related expenses, with underlying operating expenses rising modestly by 3.7% across MyState Bank and TPT Wealth. Total group operating expenses, including Auswide, stood at $127 million for FY25, with $7.5 million attributed to transaction and integration costs.

Strategic Investments and Dividend Policy

MyState continues to invest in digital transformation and partnerships to fuel profitable growth. Notably, MyState Bank migrated all retail customers to a new digital banking platform, enhancing customer experience and operational efficiency. Auswide launched a partnership with Elders, leveraging its rural network to distribute banking products tailored for agricultural clients. TPT Wealth and Selfco also reported strong momentum, with Selfco's equipment finance portfolio growing 43% since the merger.

The board declared a fully franked final dividend of 11.0 cents per share, up from 10.5 cents in the first half of FY25. This reflects confidence in the group's earnings trajectory while balancing the impact of one-off merger costs. The dividend reinvestment plan offers shareholders a 1.5% discount, encouraging reinvestment in the combined entity.

Governance and Future Outlook

Following a comprehensive audit review post-merger, MyState proposes appointing Ernst & Young as its external auditor, pending regulatory and shareholder approval. This move aligns with the group's evolving scale and complexity.

With a robust capital ratio of 17.5%, MyState is well-positioned to support future investments and growth initiatives. CEO Brett Morgan emphasized the disciplined integration approach and clear focus on delivering long-term value to shareholders and customers alike.