MyState Limited reported a 41.2% year-over-year increase in underlying net profit after tax to $58.3 million for the 12 months ended June 30, 2026, as merger-driven synergies offset integration costs.
Statutory net profit climbed 58% to $56.2 million, while total operating income rose 37.1% to $255.9 million. Underlying earnings per share increased 11.7% to 34.3 cents. The group declared a final fully franked dividend of 12.5 cents per share, bringing the full-year payout to 24.5 cents, up 3 cents from FY25. The dividend payout ratio stood at 71.5% of underlying NPAT, within the target range of 60-80%, yielding approximately 5% at the current share price.
Integration of Auswide Bank delivered $11.8 million in run-rate synergies by year-end, exceeding the initial $10 million target and supporting a 156-basis-point improvement in the cost-to-income ratio to 66.5%. Total integration costs rose to $32 million, though recognized expenses over the three-year program were reduced to $26 million. Management now targets $20-25 million in annual run-rate synergies by the end of FY28, alongside the planned 2028 launch of an AI-enabled core banking platform.
Net interest margin expanded 3 basis points to 1.50% for the year, with second-half NIM reaching 1.54%, an 8-basis-point improvement over the first half. The home loan book grew 5.8% to $13.6 billion, while customer deposits rose 4% to $10.6 billion. The group’s total capital ratio declined to 15.8% from 17.5% a year earlier, with CET1 at 11.6%.
Selfco, the equipment finance arm, contributed 11.3% of underlying NPAT through its $371 million loan book, a 134% increase year-over-year. TPT Wealth reported a 10.9% rise in operating income to $16.4 million, with funds under advice in trustee services up 17.6% to $560 million.
MyState’s shares rose 4.04% to $4.89, near the 52-week high of $4.98.
