MyState Limited (ASX: MYS) has reported steady underlying profits for the first half of the 2025 financial year as it finalises its merger with Queensland-based Auswide Bank.
For the six months ending 31 December 2024, MyState recorded an underlying net profit after tax of $17.5 million, in line with the prior corresponding period. Statutory net profit after tax, which includes $1.6 million in merger-related costs, fell 8.9% to $15.9 million.
The bank maintained its net interest margin (NIM) at 1.45%, while its total capital ratio increased by 60 basis points to 17.0%. The company declared a fully franked interim dividend of 10.5 cents per share, payable on 21 March 2025.
Customer and lending growth
- Customer deposits rose 2.2% to $6.1 billion.
- Home lending increased 0.3%, with the total loan book reaching $8.0 billion.
- 7,820 new customers joined MyState, boosting total customer numbers.
- Arrears remained below industry averages, with 90+ day delinquencies stable at 0.44%.
Managing Director Brett Morgan said MyState successfully balanced growth and margin while maintaining strong customer advocacy, reflected in a Net Promoter Score of +55.
Merger with Auswide Bank completed
MyState has now completed its merger with Auswide Bank, creating a $12.7 billion home loan book and $9.9 billion in customer deposits. The combined group serves 272,000 customers across 23 branches, digital channels, and broker networks.
The merged entity is expected to deliver annual pre-tax cost synergies of $20 million to $25 million by FY27 and become earnings accretive from FY26. MyState’s board has also been reshaped, with Sandra Birkensleigh appointed as Chair and new directors Gregory Kenny and Jacqueline Korhonen joining.
Morgan described the merger as a transformational opportunity that enhances scale, funding flexibility, and market reach. The full integration is expected to take three years, with a focus on systems consolidation and operational efficiencies.
