Announcement PDF 1H24 Results Investor presentation For the half year ended 31 December 2023 23 February 2024 1 Contents 1 3 Overview Brett Morgan { Managing Director & CEO Outlook Brett Morgan{ Managing Director & CEO 2 4 Financial results { Gary Dickson Chief Financial Officer Appendices { 2 Overview 1 Brett Morgan Managing Director & CEO 3 Key messages ● Strategy unchanged – profitably grow our share of home lending, household deposits and funds under management ● Dynamically evaluating and optimising the balance between growth and margin ● Managing costs well in high-inflation environment { ● Continuing to invest in strategic priorities, including digital and cyber ● Ready to accelerate as market conditions become more favourable ● Credit quality remains sound; no Mortgage in Possession loans ● Adequately capitalised; dividend stable at 11.5 cents per share 4 Responding to the current operating environment Since launching our growth strategy in mid-2021, we have grown our mortgage and customer deposit portfolios by 45% and 37% respectively. Bank operating efficiency has improved by 20% 1 Economic and industry dynamics MyState’s 1H24 response Competition for borrowers remains intense • • • • Dynamically optimise growth and margin Grow lending at market in the near term Invest in borrower retention Accelerate as returns become more favourable Competitive funding market • • Funding diversification and duration increased via $500m capital relief RMBS transaction Invest in and deliver on customer experience initiatives that support retail deposit growth Borrower resilience • • Investing into collection capability and capacity Support borrowers facing financial challenges Protecting and supporting customers • • Continue to invest in cyber and scam capabilities Deliver on regulatory requirements • • Cost management and efficiency focus Continue to invest in key strategic initiatives and people capability Inflationary environment 1. As internally measured by: Annualised operating expenses less marketing costs ⁄ Average lending assets + Average customer deposits. 31 December 2023: 0.59% vs. 30 June 2021: 0.74% 5 1H24 summary Challenging operating environment. Dividend stable $7.9b $6.1b 7,690 Home loan book +1% on pp Customer deposits -2.3% on pp New to bank customers acquired +4.5% on pp $26.0m 15.9cps 11.5cps Core earnings -5.3% on pp Earnings per share -5.8% on pp Stable dividend Note: Financial performance figures compare 1H24 to 2H23 as the prior period (pp). Balance sheet and capital figures compare 30 June 2023 as pp. 6 Financial results 2 Gary Dickson Chief Financial Officer 7 1H24 financial performance Metric 1H24 2H23 Total operating income ($m) 75.8 78.0 -2.9% ▼ Total operating expenses ($m) 49.8 50.6 -1.5% ▼ Core earnings ($m) 1 26.0 27.4 -5.3% ▼ ● Sound capital position Statutory net profit after tax ($m) 17.5 18.4 -5.3% ▼ ● Interim dividend maintained at 11.5 cents per share Statutory earnings per share (cps) 15.9 16.9 -5.8% ▼ Net interest margin (%) (annualised) 1.46% 1.55% -9 bps ▼ Bank cost-to-income ratio (%) 64.4% 60.5% +390 bps ▲ Group cost-to-income ratio (%) 65.7% 64.0% +170 bps ▲ Total capital ratio (%) 15.6% 15.4% +16 bps ▲ Return on average equity (%) 7.7% 8.3% -60 bps ▼ Dividend–fully franked (cps) 2 11.5 11.5 Steady  Relative to 2H23: ● Revenue challenge predominantly from NIM compression ● Expenses well managed 1H24 v 2H23 Note: Financial performance figures compare 1H24 to 2H23 as the prior period (pp). Balance sheet and capital figures compare 30 June 2023 as pp. A comparison of performance to 1H23 (the prior comparative period or pcp) is included in the Appendices. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation and totals may vary slightly due to rounding. 1. 2. Operating profit before bad & doubtful debts expense and income tax expense Interim dividend of 11.5 cps payable to shareholders on the register at the record date of 29 February 2024 8 Half year NPAT Well-managed expenses partially offsetting revenue challenges Net profit after tax ($m) 1.6 0.4 0.8 0.3 0.1 0.5 Increase Decrease 18.4 2H23 Statutory NPAT Net interest income Other banking income Wealth management income Operating expenditure 17.5 Net bad and doubtful debts Income tax expense 1H24 Statutory NPAT ● NPAT decreased 5.3% on 2H23 ● Net interest income down 2.5% as a result of a decline in net interest margin, partially offset by a larger average balance sheet ● Other banking income down 5.9% with lending and transaction fees lower (both volume related) ● Wealth management income down 3.6% driven by lower Investment Services income, partially offset by higher Trustee Services income ● Total operating costs down 1.5% on pp (and 4.3% on pcp) 9 Operating costs well-managed in inflationary environment ● Operating costs decreased by 1.5% ($0.8m) ● Underlying salary costs flat with 3% lower FTE at 31 December, offset by CPI related increases ● Marketing costs down with an uplift expected in 2H24 to support retail deposit growth ● Technology costs flat but continuing to invest in key priorities, including digital and cyber ● Since the launch of MyState’s growth strategy in mid-2021, MyState Bank’s operating efficiency has improved by 20%1 Operating costs ($m) 1.1 1. 1.1 0.0 0.8 Marketing 0.58% 0.59% Jun-23 Dec-23 49.8 Decrease Personnel 0.74% 0.67% Increase 50.6 2H23 MyState Bank operating efficiency ratio 1 Technology Other 1H24 As internally measured by: Annualised operating expenses less marketing costs ⁄ Average lending assets + Average customer deposits. Jun-21 Jun-22 10 11 Challenging margin environment ● Constantly optimising the balance between growth and margin ● Margins impacted by o home loan and deposit price competition o deposit switching o increase in securitisation funding o higher liquids holdings NIM waterfall Average NIM trend 0.01% Origination costs 0.03% 1.71% Increase Decrease 1.22% 1.46% 1.22% 0.29% 0.05% 1.55% 2H23 1.55% 0.30% 1.46% Asset yield Asset mix Origination cost Funding cost Funding mix 1H24 1H23 2H23 1H24 12 Quality home loan book Home loan book – applications and settlements ($b) ● Home loan portfolio up $77m to $7.9b ● Growth in low risk <80% LVR lending: +$180m ● Average number of days to unconditional approval in line with service level targets ● Portfolio LVR 56.0% at 31 December 2023 3.0 2.6 3.5 2.6 1.6 ● Arrears remain below industry average with 90+ days at 39 bps FY21 1.5 FY22 Applications Settlements 4.9 ● Improving run-off in Q2 relative to Q1 FY24 FY23 0.9 1H24 90+ days S&P arrears data Home loan book LVR profile ($b) 22% 1H 2H 7.8 7.9 6.8 0.9 0.8 >90% 0.8 0.5 0.3 0.6 0.4 0.6 0.4 85%-90% 80% - 85% MyState SPIN Majors SPIN Regionals 23% 2.40% 2.00% 1.60% 78% 5.9 5.3 6.1 <80% 77% 1.20% 0.80% 0.39% 0.40% 0.00% Jun 22 <80% LVR Jun 23 80-85% LVR 85-90% LVR Dec 23 >90% LVR 13 Prudent loan provisioning ● Increase in total collective provisions consistent with uptick in arrears Credit provisions ($m) ● Forward looking overlay has remained steady at $1.6m (represents 19% of total collective provision) 6.9 6.0 2.4 7.7 2.7 4.2 4.5 1.8 ● Very low loss history 1.5 0.8 1.5 1.1 1.5 2.0 0.9 ● No mortgagees in possession at 31 December 2023 2.0 2.1 3.0 3.0 3.0 Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 ● Continue to work closely with any customers experiencing financial hardship Stage 1 0.41% 0.37% 0.32% 9.2 0.9 Dec 23 0.11% 0.13% 5.0 Jun 22 Dec 22 Jun 23 % of Credit RWA % of Gross Loans 0.10% Stage 3 Total collective provisions and GRCL ($m) 0.12% Dec 21 0.28% 0.15% 0.41% Total provision coverage ratio Stage 2 8.3 6.8 0.9 2.3 1.6 2.4 3.3 3.6 4.3 Dec 21 Jun 22 Dec 22 Collective Provision GRCL Total 9.3 1.6 2.4 10.1 1.6 2.4 5.3 6.1 Jun 23 Dec 23 Forward overlay 14 Diversified funding mix Funding mix (%) 17.6% 14.4% 16.3% 9.0% 12.6% 10.9% ● Securitisation remains an important source of funding and provides additional capital flexibility (largest MyState deal issued in Sept-23: $500m) 73.4% 73.1% 72.8% 69.5% ● RMBS deal provided flexibility to run-off price sensitive deposits Jun-21 Jun-22 Jun-23 Dec-23 ● Continued growth in the award winning Bonus Saver Account (+5.9% on 30 June 2023) ● Term Funding Facility only 0.9% ($76m) of total funding at Dec-23 Customer deposits Wholesale funding Customer deposits ($b) 10.9% Securitisation -2.3% 6.2 6.1 3.4 3.4 2.8 2.7 5.6 4.5 19.6% 3.4 3.0 1.5 Jun-21 2.2 Jun-22 Customer deposits at term Jun-23 Dec-23 Customer deposits at call 15 Increased total capital ● MyState remains well capitalised with total capital ratio up 16 bps to 15.59% ● During the half, capital relief term RMBS and warehouse drawdowns were completed ● Dividend supported by the organic generation of capital Capital 15.43% 0.08% 0.63% 0.68% 0.46% 0.36% 0.01% 0.40% 15.59% 1.89% 1.92% 2.32% 2.35% 11.22% Jun-23 Capital initiatives CET1 capital AT1 capital Securitised assets Profit Tier 2 capital Dividends paid Increase Secured mortgage lending Decrease Capitalised intangibles 11.32% Other asset growth Dec-23 16 TPT Wealth providing income diversification Operating income ($m) 14.8 ● TPT provided $6.8m in fee revenue and income diversification for the Group 14.3 5.2 5.0 ● Improved operating efficiency with underlying expenses 12% lower than pp ● Solid uplift in NPAT ● TPT’s competitive focus was on the Tasmanian heartland, centred on the Cash and Income funds and Trustee services 6.8 9.6 2.7 9.3 4.1 FY22 FY23 Investment services ● Improved returns supporting growth in funds under management 1H24 Trustee services Funds under management ($m) +0.6% 1,030 994 1,001 Dec-22 Jun-23 Dec-23 18 Outlook 3 Brett Morgan Managing Director & CEO 19 New growth, revenue and efficiency initiatives in 2H24 Bank New digital experience Wealth Expanding Trustee services offer Group Multiple efficiency initiatives 20 20 Outlook Based on the current operating environment, we expect performance for the full year to be in line with the guidance provided in December 1H24 progress FY24 guidance 0.5x system Lending growth 1.0x system MyState Bank deposit composition 69.5% Customer deposits >70% of funding Earnings per share 15.9 cps 31.1 to 32.8 cents per share MyState Bank underlying cost to income ratio 64.4% 64% to 66% Return on equity 7.7% Between 7.5% and 8.0% MyState Bank lending 21 Appendices 4 22 Why MyState? Comprises a growing bank and a trusted wealth { management business Trusted Tasmanian brand with strong { market share and leading advocacy Proven and consistent { financial performance Delivering on long-term { growth strategy 23 23 Consistent strategic direction Our ambition is to profitably grow our share in deposits, lending and funds under management. Together for the better Transaction accounts Savings accounts Home lending Commercial lending Wills and estates planning Term deposits Investment lending Income funds Trustee and executorial services Spending Saving Borrowing Investing Legacy Our people and values underpin our strategy Create customer ‘wow’ | Chase the better | Collaborate to win Our award winning products assist our customers and clients at all stages of life. 24 Corporate profile MyState is a provider of banking, trustee and wealth management services to over 180,000 customers across Australia through its retail brands – MyState Bank and TPT Wealth. MyState listed on the ASX in 2009. Ratings MyState Limited MyState Bank Moody’s Baa3 Baa2 Fitch BBB+ BBB+ MyState has a market capitalisation of ~$372m (as at 22 February 2024) and a shareholder base of ~58,000. Total operating income for the half year ended 31 December 2023 was $75.8m. MyState Bank is a challenger bank with strong digital capability. Since its establishment, it has grown its total assets to $9.3bn, offers award winning products and has strong customer satisfaction ratings. * 91% * % of Operating Income as at 31 December 2023 Banking Lending | Deposits | Transactions TPT Wealth was founded in 1887 and is one of the oldest providers of wealth solutions in Australia. A trusted brand, today it offers contemporary financial products including asset management and trustee services. * 9% Wealth Funds management | Trustee services 25 26 Focusing on community MyState Bank Arena MyState Foundation Naming rights sponsorship of the new home { of entertainment and sport in Tasmania. Over 20 years of supporting the community. Over $2.5m in { grants provided to not-for-profit organisations. Tasmania JackJumpers Football Tasmania Principal partner of the Tasmanian { JackJumpers helping make genuine community connections all around Tasmania. Naming rights partner of the Women’s { Super League and leadership development program. 27 1H24 financial performance Relative to 2H23: ● Revenue challenge predominantly from NIM compression ● Expenses well managed ● Sound capital position ● Interim dividend maintained at 11.5 cents per share Metric 1H24 2H23 1H23 1H24 v 2H23 1H24v 1H23 Total operating income ($m) 75.8 78.0 82.3 -2.9% ▼ -7.9% ▼ Total operating expenses ($m) 49.8 50.6 52.0 -1.5% ▼ -4.3% ▼ Core earnings ($m) 1 26.0 27.4 30.3 -5.3% ▼ -14.2% ▼ Statutory net profit after tax ($m) 17.5 18.4 20.1 -5.3% ▼ -12.9% ▼ Statutory earnings per share (cps) 15.9 16.9 18.6 -5.8% ▼ -14.5% ▼ Net interest margin (%) (annualised) 1.46% 1.55% 1.71% -9 bps ▼ -25 bps ▼ Bank cost-to-income ratio (%) 64.4% 60.5% 61.1% +390 bps ▲ +330 bps ▲ Group cost-to-income ratio (%) 65.7% 64.0% 63.2% +170 bps ▲ +250 bps ▲ Total capital ratio (%) 15.6% 15.4% 14.1% +16 bps ▲ +149 bps ▲ Return on average equity (%) 7.7% 8.3% 9.2% -60 bps ▼ -150 bps ▼ Dividend–fully franked (cps) 2 11.5 11.5 11.5 Steady  Steady  Note: Financial performance figures compare 1H24 to 2H23 as the prior period (pp) and 1H24 to 1H23 as the prior comparative period (pcp). Balance sheet and capital figures compare 30 June 2023 as pp. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation and totals may vary slightly due to rounding. 1. 2. Operating profit before bad & doubtful debts expense and income tax expense Interim dividend of 11.50 cps payable to shareholders on the register at the record date of 29 February 2024 28 Operating costs Operating costs breakdown ($m) -2.8% 48.8 5.8 9.2 47.1 52.0 50.6 49.8 5.8 4.2 3.1 6.9 8.4 8.4 17.1 16.3 4.5 8.5 15.8 12.7 ● Operating costs have declined for the 2nd half in a row -1.5% 12.3 21.1 21.7 23.5 1H22 2H22 1H23 Personnel costs Other Relative to pp: ● Operating costs declined 1.5% ● Personnel costs increased with lower FTE in 1H24 offset by salary increases. 2H23 benefitted from lower staff related incentives ● Marketing spend down ahead of an expected uplift in 2H24 to Technology 21.0 22.1 2H23 1H24 Marketing support customer acquisition and retail deposit growth ● Technology expenses flat but continuing to invest in key priorities, including digital and cyber 29 Home loan book Loan balance and lending flows ($b) ● Growth driven by lower risk owner occupied P&I lending with LVR <80% 0.6 0.4 0.6 0.9 ● Variable rate lending as a proportion of total flow increased to 97% in 1H24 (96% in pp) 7.8 ● Run-off remains a sector wide challenge and the run-off rate increased 7.9 Increase 90 bps to 26.3% (25.4% in pp) Decrease Jun-23 New funding Discharges Redraw & Interest Repayments Dec-23 Home loan concentration by state Dec 2023 Dec 2020 Home loan book composition ($b) 0.2 0.2 6.8 0.4 0.2 7.8 1.1 NT 0.5 0.1 0.3% | 0.1% 7.9 QLD WA 1.2 19.6% | 20.2% 2.3% | 1.6% 1.0 SA 1.3% | 0.8% 78% 6.1 6.1 5.4 NSW 78% 20.5% | 20.0% VIC Concentration Jun-22 Jun-23 Own. Occ. P&I Inv. P&I Dec-23 Own. Occ. I/O Inv. I/O ACT 1.1% | 1.0% 23.4% | 18.0% Low High TAS 31.5% | 38.3% 30 Continued high credit quality ● Maintaining quality lending growth underpins our balance sheet strength ● Our focus is on low-risk, owner occupied lending with a LVR of less than 80%; portfolio LVR 56.0% at 31 December 2023 ● Arrears remain below industry average 30+ days S&P arrears data 2.40% MyState SPIN Majors SPIN Regionals 90+ days S&P arrears data 2.40% 2.00% 2.00% 1.60% 1.60% 1.20% 0.91% MyState SPIN Majors SPIN Regionals 1.20% 0.80% 0.80% 0.40% 0.40% 0.00% 0.00% 0.39% 31 Forward looking economic overlay assumptions Assumptions June 24 June 25 Unemployment (year ended) ● Forward looking overlay has remained steady at $1.6m with sentiment the economy is on track for a relatively soft landing ● At 31 December 2023, the key assumptions used to determine the overlay incorporate the latest observed economic data including: Base Case 4.00% 4.50% Strong Recovery 3.50% 4.00% ✔ prospects of soft-landing increased globally notwithstanding forecast of lower growth in the medium term Moderate Recession 5.00% 5.50% ✔ growth below trend and increasing unemployment ✔ stabilisation of housing market in the face of supply/demand imbalance, noting recovery remains uncertain in the medium term Cash Rate (year ended) Base Case 4.35% 3.85% Strong Recovery 4.85% 4.85% Moderate Recession 2.85% 2.60% Base Case 0.0% -5.0% Strong Recovery 5.0% 10.0% Moderate Recession -15.0% -20.0% ● The assessment of the overlay used a scenario weighting of 50% base case, 40% moderate recession and 10% strong recovery. House Prices (yoy movement) Scenario weightings June 2023 10% 50% 40% Dec 2023 10% 50% 40% Strong recovery Base case Moderate recession 32 Fixed rate home loan profile New HL flow – fixed rate issuance Fixed rate HL expiry schedule as at 31 Dec 23 100% 600.0 m 533m 500.0 m 479.2 m 90% 80% 440.7 m 70% 400.0 m 60% 294m 40% 178m 6 mths to Dec 20 158.6 m 200.0 m 72m 6 mths to Jun 20 50% 300.0 m 249m 6 mths to Jun 21 6 mths to Dec 21 6 mths to Jun 22 23m 43m 6 mths to Dec 22 6 mths to Jun 23 25m 6 mths to Dec 23 100.0 m 30% 40.0 m 42.7 m 9% 91% 6 mths to Jun 20 24% 31% 34% 76% 69% 66% 6 mths to Dec 20 6 mths to Jun 21 6 mths to Dec 21 Variable 35.2 m 14.6 m 2.9 m .5 m .5 m .0 m 10% 0% 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to Jun 24 Dec 24 Jun 25 Dec 25 Jun 26 Dec 26 Jun 27 Dec 27 Jun 28 Dec 28 Fixed rate HL expiry Fixed rate issuance composition 20% Cumulative proportion of expiry Fixed vs variable composition of book 15% 85% 6 mths to Jun 22 Fixed 1% 99% 6 mths to Dec 22 4% 96% 6 mths to Jun 23 3% 17% 20% 23% 28% 27% 23% 21% 16% 83% 80% 77% 72% 73% 77% 79% 84% Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 97% 6 mths to Dec 23 Variable Fixed 33 Capital, stock and flow metrics 31-Dec-23 30-Jun-23 30-Jun-22 Movement (Jun-Dec ‘23) $m $m $m $m Stock metrics % Qualifying capital Common equity tier 1 capital (CET1) Ordinary share capital Retained earnings Accumulated other comprehensive income (and other reserves) Total common equity Tier 1 capital - Dec-23 Jun-23 Jun-22 Broker 82% 82% 78% Proprietary 18% 18% 22% Owner occupied 79% 80% 81% Investor 20% 19% 19% 229.33 227.31 211.17 2.03 1% Non housing 1% 1% 1% 239.62 237.61 221.8 2.01 1% Principal & Interest 93% 93% 93% 0.96 -1.13 6.98 0.17 (15%) Interest only 7% 7% 7% 467.99 463.78 439.94 4.21 1% Variable 84% 79% 73% Fixed 16% 21% 27% LMI 16% 16% 19% Dec-23 Jun-23 Jun-22 Broker 87% 87% 87% Proprietary 13% 13% 13% Less: Regulatory capital adjustments Goodwill (Net of related tax liability) Deferred tax assets 49.76 49.76 49.76 - 0% 1.91 1.27 0.73 38% Cash flow hedge reserve 2.64 Capitalised expenses Investments in controlled entities Other adjustments Total regulatory adjustments Net common equity tier 1 capital 2.17 53.44 40.68 4.61 53.9 40.68 8.4 49.07 36.66 (2.44) (0.46) - (53%) (1%) 0% 10.51 159.19 308.80 3.77 154.63 309.15 2.02 147.18 292.76 6.73 4.56 (0.35) 178% 3% (0%) Owner occupied 70% 77% 81% Investor 29% 22% 18% Additional tier 1 capital 63.97 63.84 - 0.13 100% Non housing 1% 1% 1% Total Tier 1 capital 372.77 372.99 292.76 (0.21) (0%) Principal & Interest 84% 83% 86% Interest only 16% 17% 14% Tier 2 capital Flow metrics Subordinated notes (ii) 49.92 49.9 50 0.02 0% Variable 97% 98% 76% Equity reserve for credit losses 2.37 2.26 52.26 - 0% Fixed 3% 2% 24% 52.29 425.06 2,479.23 2.37 52.27 11% 10% 11% 345.02 2,468.55 0% (0%) (1%) LMI 425.26 2,504.96 0.02 (0.20) (25.73) 247.92 2,727.15 250.50 2,755.46 311.73 2,780.97 (2.57) (28.29) (1%) (1%) NSW 22% 23% 22% QLD 18% 18% 21% 31-Dec-23 30-Jun-23 Movement % TAS 28% 23% 29% CET1 capital ratio 11.32% 11.22% 0.10% VIC 27% 30% 23% Tier 1 capital ratio 13.67% 13.54% 0.13% Other states 6% 6% 5% Total capital ratio 15.59% 15.43% 0.15% Total Tier2 capital Total capital Credit risk weighted assets Operating risk Total risk weighted assets By state (% of flow): 34 ESG We know that progress on ESG is an evolution, and we are proud to be taking steps to positively impact our customers and our wider stakeholder groups. The 6 ESG topics that matter most to us: Supporting customers Environmental sustainability Helping our people be their best Digital enablement and data security Governance, conduct and culture Community investment What we have been up to in 1H24: E S G Environment Social Governance Continue to enhance carbon accounting capability to measure and report on MyState’s GHG footprint • Significant emphasis on digital communication with customers • Investment into scams detection, systems, education and information sharing • Continued enhancement of support for customers experiencing vulnerability due to circumstances such as financial hardship, family violence, elder abuse and scams • Investment into learning and leadership programs, focusing on developing our people • Our team have provided over 180 hours of volunteering to deepen support to our MyState Community Foundation grant recipients and not for profits in the Tasmanian community • All non-executive directors independent • ESG Committee with oversight from the MYS Board • 35 Glossary 1H: First half of financial year EPS: Earnings per share NIM: Net Interest Margin 2H: Second half of financial year FHLDS: First Home Loan Deposit Scheme NPAT: Net Profit after Tax FUM: Funds under management NPBT: Net Profit before Tax FY: Financial year PCP: Previous Corresponding Period FYTD: Financial year to date RBA: Reserve Bank of Australia GLA: Gross Lending Assets RMBS: Residential mortgage-backed security GRCL: General Reserve for Credit Losses ROE: Return on equity HY: Half year RWA: Risk Weighted Assets ADI: Authorised deposit-taking institution APRA: Australian Prudential Regulation Authority Avg: Average ASX: Australian Securities Exchange BBSW: Bank Bill Swap Rate IO: Interest only SaaS: Software as a Service BDD: Bad & Doubtful Debt Expense IRB: Internal ratings-based S&P: Standard and Poor’s JAWS: relationship between income and expense growth SPIN: Standard and Poor’s Performance Index Stage 1: performing loans (31-60 days arrears) Stage 2: under-performing loans (61-89 days arrears) Stage 3: non-performing loans (90+ days arrears) ST: Short term TD: Term deposit TFF: Term Funding Facility TPT: TPT Wealth Limited bps: basis points CAGR: Compounded annual growth rate CET1: Common Equity Tier 1 cps: Cents per share CTI: Cost-to-income ratio DRP: Dividend reinvestment plan LT: Long term LVR: Loan to valuation ratio MYS: MyState Limited MSB: MyState Bank Limited MLH: Minimum liquidity holdings NII: Net Interest Income 36 Disclaimer Summary information The material in this Presentation is general background information about MyState Limited (ABN 26 133 623 962) and its activities current as at the date of this Presentation. The information is given in summary form and does not purport to be complete or comprehensive. It should be read in conjunction with MyState’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. Not an offer Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell MyState securities. It is for information purposes only. Not financial product advice This Presentation is for general information purposes only. It is not financial product advice and should not be relied upon for investment purposes. It has been prepared without taking into account any investor’s objectives, financial position, situation or needs. It does not purport to summarise all information that an investor should consider when making an investment decision. Therefore, before making an investment decision, investors should consider the appropriateness of the information in this Presentation and have regard to their own objectives, financial situation and needs. Investors should seek such financial, legal or tax advice as they deem necessary or consider appropriate. MyState is not licensed to provide financial product advice in relation to the offer of shares. Financial information All information in this Presentation is in Australian dollars ($) unless stated otherwise. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation and totals may vary slightly due to rounding. All references to financial years (FY) appearing in this Presentation are to the financial years ended on 30 June of the indicated year. All figures are presented on an accruals basis unless otherwise stated. Past performance not indicative of future performance Past performance information, including past share price information, should not be relied upon as (and is not) an indication of future performance. To the extent that such information is included in this Presentation, it is given for illustrative purposes only. Forward looking statements This Presentation may contain “forward-looking” statements including statements regarding MyState’s intent, belief or current expectations with respect to their business operations, market conditions, results of operations, financial conditions, and risk management practices. Forwardlooking statements can generally be identified by the use of forward-looking words such as “anticipated”, “expected”, “aim”, “predict”, “projections”, “guidance”, “forecast”, “estimates”, “could”, “may”, “target”, “consider”, “will”, “believe”, “schedule”, “seek” and other similar expressions. Indications of, and guidance on, future earnings, financial performance, and financial position are also forward looking statements . Forward looking statements, opinions and estimates are based on assumptions, information and contingencies at the time of this Presentation and are subject to certain risks uncertainties and change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, there can be no assurance that actual outcomes will not differ materially from these statements. To the fullest extent permitted by law, MyState and its directors, officers, employees, advisers, agents and intermediaries take no responsibility for the accuracy or completeness of any forward-looking statements, whether as a result of new information, future events or results or otherwise. MyState does not undertake to release any updates or revisions to the forwardlooking information contained in this document. 37