MyState’s Bold Merger Boosts Profit 17%, Declares 11c Dividend
MyState Limited’s merger with Auswide Bank has driven a 17% rise in underlying net profit to $41.3 million for FY25, alongside a strengthened capital position and a fully franked 11 cent dividend.
- 17% increase in underlying net profit after tax to $41.3 million
- Home loan book expands 62% to $12.9 billion post-merger
- Customer deposits surge 71%, total capital ratio improves to 17.5%
- Integration on track with $20-25 million annual pre-tax synergies targeted
- Final fully franked dividend declared at 11 cents per share
Merger Milestone and Financial Growth
MyState Limited marked a transformative year in FY25, completing its merger with Auswide Bank in February 2025. This strategic move created a larger, more diversified financial services group, reflected in a 17% uplift in underlying net profit after tax to $41.3 million. Despite merger-related integration costs, statutory net profit remained solid at $35.6 million.
The merger has significantly expanded MyState’s home loan book by 62% to $12.9 billion and boosted customer deposits by 71%, underscoring strong growth momentum. The total capital ratio improved to a robust 17.5%, supported by a $100 million Tier 2 subordinated notes issuance, enhancing the group’s financial resilience.
Integration Progress and Synergies
Integration efforts are advancing well, with the Board confident in delivering $20-25 million in annual pre-tax cost synergies over the next three years. Early gains include cost containment with underlying expense growth limited to 3.7% when excluding one-off merger costs. The combined entity now benefits from greater operating leverage and flexibility to pursue growth opportunities.
MyState’s leadership highlights the successful unification of governance and executive teams, fostering continuity and accountability. This cohesion has enabled the group to maintain customer service standards and launch new initiatives aimed at long-term value creation.
Digital Transformation and Strategic Initiatives
Beyond financial metrics, MyState has accelerated its digital transformation, migrating all retail customers to a new mobile and internet banking platform. This upgrade simplifies customer interactions and supports faster lending approvals. Additionally, Auswide Bank’s partnership with Elders expands distribution channels, while the Selfco acquisition fuels growth in vehicle and equipment finance.
TPT Wealth continues to build momentum in trustee services, enhancing client experiences and operational efficiency. These initiatives align with MyState’s strategic priorities to grow home loans, asset finance, and wealth management segments, leveraging the scale and capabilities of the merged group.
Dividend and Outlook
The Board declared a final fully franked dividend of 11 cents per share, reflecting confidence in the group’s earnings quality and capital strength. The payout ratio stands at just over 78% of second-half underlying profit, balancing shareholder returns with prudent capital management.
Looking ahead, MyState enters FY26 with a clear strategic roadmap focused on completing integration, including consolidating banking licenses and technology platforms. The group aims to sustain profitable growth while maintaining disciplined cost control and strong customer advocacy, as evidenced by a stable Net Promoter Score of +54.
Bottom Line?
MyState’s merger momentum sets a strong foundation, but the real test lies in seamless integration and sustained growth execution.
Questions in the middle?
- How quickly will MyState fully integrate Auswide’s operations and realize targeted synergies?
- What impact will the new digital platform have on customer acquisition and retention?
- How will MyState balance growth ambitions with cost discipline amid evolving market conditions?
