MyState (MYS) H1 2025 earnings summary

Executive summary

• Merger with Auswide Bank became effective in February 2025, creating a larger, more diversified group with increased scale, capital base, and broader geographic reach, and is expected to be double-digit earnings accretive in FY26 post-synergies.

• Underlying net profit after tax for 1H25 was steady at $17.5 million, while statutory NPAT was $15.9 million, down 8.9% year-over-year due to $1.6 million in merger transaction costs.

• Customer advocacy remains strong with an NPS of +55, and new to bank customers totaled 7,820, reflecting continued growth in new customers, lending, and deposits.

• Fully franked interim dividend of 10.5 cents per share declared, supported by a strong capital position.

Financial highlights

• Total operating income rose 1.6% year-over-year to $77.0 million; net interest income increased 1.3% to $63.8 million.

• Operating expenses (excluding merger costs) increased 5.8% to $52.7 million, reflecting inflationary pressures.

• Net interest margin averaged 1.45%, steady with prior periods; December exit NIM was 1.47%.

• Wealth management income rose 6.1%; TPT Wealth revenue reached $7.2 million.

• Interim dividend of 10.5 cps declared, representing 77% of underlying pro forma earnings.

Outlook and guidance

• Full run-rate cost synergies from the merger expected by end of FY27, targeting $20–25 million in annual pre-tax cost synergies, with more than 50% realized in the first 18 months.

• Integration process to span three years with pre-tax integration costs of ~$29 million, mostly in first two years.

• Focus remains on asset quality, profitable growth, and operating efficiency amid competitive lending and deposit markets.