MyState (MYS) H2 2025 earnings summary

Executive summary

• Completed transformational merger with Auswide in February, integrating four businesses and expanding the customer base to over 275,000 across Australia's eastern seaboard.

• Achieved annualised cost synergies of AUD 8.4 million within four months post-merger, with further cost savings targeted over three years.

• Underlying NPAT increased 17% to AUD 41.3 million, supported by both merger and organic growth; statutory NPAT at AUD 35.6 million.

• Board declared a fully franked final dividend of AUD 0.11 per share, bringing the full-year dividend to AUD 0.215 per share, with a 1.5% DRP discount.

• Focused on digital transformation, operational efficiency, and profitable growth across all business units.

Financial highlights

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

• Total operating income increased 22.4% to AUD 186.6 million; net interest income up 25.7% to AUD 156.6 million.

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

• Customer home loans grew 62% to AUD 12.9 billion; customer deposits up 71% to AUD 10.1 billion.

• Total capital ratio increased 109 basis points to 17.5% at June 30.

Outlook and guidance

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

• On track to deliver AUD 20–25 million in annual pre-tax cost synergies over three years, with integration costs estimated at AUD 29 million.

• Continued investment in digital systems and partnerships to drive scale and efficiency.

• Projected double-digit EPS growth based on full merger run-rate synergies.

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