MyState Annual Profit Surge
MyState Reports 41% Underlying Profit Rise Following Successful Integration of Auswide Bank
Anonymous
Key Points
1
Core earnings (pre-provision operating profit) rose 43.9% to AUD 85.8 million in FY26.
2
The Selfco equipment finance book grew 134% to AUD 371 million, highlighting accelerating growth in the group's finance arms.
3
Integration costs increased to AUD 32 million (from AUD 29 million), largely to fund a modern AI-enabled core banking platform with TCS, with a portion capitalised to reduce P&L impact.
4
Total assets stood at AUD 16.097 billion (net assets AUD 757 million) with CET1 capital at 11.6% and total capital at 15.8%, signaling a stronger balance sheet after the merger.
5
A Dividend Reinvestment Plan (DRP) will be offered, with DRP shares issued at a 1.5% discount to VWAP and an election date of 1 September 2026.
MyState Limited posted a 41% jump in underlying profit for the year ending June 30, 2026, with earnings reaching A$58.3 million StockWire. The Australian bank's statutory net profit surged 58% to A$56.2 million, driven by its merger with Auswide Bank and growth in home lending and deposits Kalkine Media.
This was MyState's first full year post-merger, with the two banks moving to a single licence on December 1, 2025 Investing.com. The company has already captured A$11.8 million in cost savings and targets A$20–25 million by 2028, while declaring a fully franked dividend of 12.5 cents per share Kalkine Media.
Operating Income and Margins Climb Sharply
Total operating income rose 37.1% to A$255.9 million in FY26 Kalkine Media. On a pro forma basis — treating Auswide as part of the group for the full prior year — the growth rate was 6.9%, showing the merger's contribution to headline results Kalkine Media.
The bank's net interest margin, the profit earned on lending, expanded to 1.50% Kalkine Media. Earnings per share climbed 11.7% to 34.3 cents, while core earnings before loan provisions rose 43.9% to A$85.8 million StockWire.
Merger Synergies on Track, Platform Upgrades Underway
MyState has captured A$11.8 million in run-rate cost savings from the Auswide merger in FY26 Kalkine Media. Integration costs reached A$32 million, up from A$29 million, largely to fund a modern AI-enabled core banking platform built with Tata Consultancy Services Kalkine Media. The company capitalized some costs to soften the impact on reported profits.
The bank's balance sheet strengthened after the merger. Total assets climbed to A$16.097 billion, with capital ratios improving: the CET1 capital ratio stood at 11.6% and total capital at 15.8% Kalkine Media.
Equipment Finance Arm Accelerates Past A$370 Million
Selfco, MyState's equipment finance division, delivered explosive growth. The finance book jumped 134% to A$371 million Kalkine Media. This diversified revenue stream is now a key engine for the merged group's expansion beyond traditional home lending TradingView.
Dividend Boost and Challenges Ahead
The board declared a fully franked final dividend of 12.5 cents per share, bringing the full-year payout to 24.5 cents Kalkine Media. A Dividend Reinvestment Plan will offer shares at a 1.5% discount to the 20-day volume-weighted average price, with an election date of September 1, 2026 Kalkine Media.
Management flagged headwinds: potential revenue volatility, higher debt levels, and the need to tighten costs to protect margins and returns Investing.com. Asset quality has improved, but the bank must balance investment in its new platform with sustaining shareholder payouts StockWire.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
11
Articles
16
Reach
27
A
AnonymousAuthor
