MyState Limited reported a 41% rise in underlying net profit after tax to AUD 58.3 million for the fiscal year ended June 2026, as merger-driven synergies and diversified earnings offset integration costs.
Statutory net profit after tax totaled AUD 56.2 million, down from AUD 58.3 million in the prior year after excluding AUD 2.1 million in merger-related integration costs and fair-value adjustments. Underlying earnings per share increased about 12%, while the board declared a fully franked final dividend of AUD 0.125 per share, lifting the full-year payout to AUD 0.245 per share—up AUD 0.03 from FY25. The dividend yield stood at 4.89%.
Merger integration delivered AUD 11.8 million in realized synergies by June 2026, exceeding the AUD 10.7 million figure cited earlier, with the group targeting AUD 20 million to AUD 25 million in annual run-rate synergies by FY28. Total integration costs are expected to reach AUD 32 million through June 2028. MyState transitioned to a single banking license in December 2025 following its February 2025 merger with Auswide Bank and Selfco, marking its first full year as a combined entity.
The group’s home loan book expanded 5.8% to AUD 13.6 billion, while total customer deposits rose 4% to AUD 10.6 billion, representing 70% of total funding. Net interest margin improved by 3 basis points to 1.5% for the full year, with an 8-basis-point increase in the second half to a June exit rate of 1.58%. The cost-to-income ratio fell by 156 basis points, while underlying return on equity climbed 80 basis points to 9.7%.
Selfco, the equipment finance unit, contributed AUD 3.9 million to underlying NPAT—nearly 7% of the group total—with its loan book surging 134% and an average loan size of about AUD 80,000. TPT Wealth reported an 11% rise in operating income to AUD 16.4 million, an 18% increase in funds under administration to AUD 560 million, and a 12% rise in NPAT.
MyState issued AUD 250 million in senior unsecured floating-rate notes in April 2026 and reduced its total capital ratio to 15.8% after redeeming AUD 52 million of Tier 2 capital. The group’s 90-day arrears rate declined by 12 basis points to 32 basis points, while loans with loan-to-value ratios below 80% accounted for 77% of the total book.
Shares rose 4.68% to close at AUD 4.92, near the 52-week high of AUD 4.98. The stock trades on a P/E ratio of 19.3, with a financial health score of 1.83 and a beta of 0.65.
Management highlighted the growing contribution from high-return businesses such as Selfco and TPT Wealth, with CEO Brett Morgan stating that the merger thesis is translating into results. CFO Gary Dickson noted that the planned AI-enabled core banking platform investment aims to strengthen long-term competitiveness and operating capabilities.
