MyState (MYS) H2 2025 earnings summary

Executive summary

• FY 2025 was transformational with the completion of the Auswide merger in February, driving significant business growth, integration progress, and $8.4m in annualised synergies within four months.

• Loan book grew 7.5% annualised post-merger, with home loan and deposit books up 62% and 71% respectively, and a significant increase in scale and capital base.

• Underlying NPAT increased 17% to $41.3m, supported by both merger and organic growth; statutory NPAT was $35.6m.

• Board declared a fully franked final dividend of 11.0 cps, bringing the full-year dividend to 21.5 cps, supported by a strong capital position.

• Growth initiatives were executed across banking, equipment finance, and wealth management.

Financial highlights

• Underlying NPAT up 17% year-over-year to $41.3m; statutory NPAT at $35.6m after merger-related costs.

• Net interest income rose 26% and other banking income increased 24% year-over-year; total operating income up 22.4% to $186.6m.

• Net interest margin averaged 1.47%, up two basis points from FY 2024.

• Total operating expenses increased 25.7% to $127m, mainly due to the inclusion of Auswide.

• Customer deposits reached $10.1b, up 71%, now representing nearly 71% of total funding.

Outlook and guidance

• Targeting home loan growth marginally ahead of system (5%-6%) for FY 2026, balancing growth and margin.

• Integration priorities include moving to a single banking license, consolidating core systems, and aligning cultures.

• Projected double-digit EPS growth based on full merger run-rate synergies; annual cost synergies of $20–25m (pre-tax) expected by FY28.

• Underlying cost growth projected at 5% per annum, with synergies expected to offset increases for a flat cost base in FY 2026.

• Dividend payout ratio to be considered based on underlying NPAT during the transformational period.