Announcement PDF 17 February 2017 The Manager Company Announcements Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Dear Sir MyState Limited – Half Year Report (Appendix 4D) for the half year ended 31 December 2016 The Directors of MyState Limited (the “Company”) are pleased to announce the audited results of the Company for the half year ended 31 December 2016 as follows: RESULTS FOR ANNOUNCEMENT TO THE MARKET $’000 31 December 2015 $’000 31 December 2016 % Change Revenue from operations 61,289 61,836 0.9% Profit after tax attributable to members 15,084 15,190 0.7% 15,084 15,190 0.7% Extracted from the Financial Statements for the half year ended Net profit after tax attributable to members Dividends for the current year are: Interim Dividend FY2017 fully franked at 30% Amount per security Franked amount per security 14.0 cents 14.0 cents Amount per security Franked amount per security 14.5 cents 14.5 cents Payable on 20 March 2017 Record date for determining entitlements for the interim dividend is 24 February 2017. Dividends for the previous year were: Final dividend – 2016, fully franked at 30% Paid 3 October 2016 Dividend Reinvestment Plan Last Date for Receipt of DRP Election Notice The MyState Limited Dividend Reinvestment Plan is operational for this interim dividend. Net Tangible Assets per share 24 February 2017 2015 2016 248 cents 243 cents The remainder of the information requiring disclosure to comply with Listing Rule 4.2A.3 is contained in the attached copy of the Financial Statements and comments on performance of the Company included in the Media and ASX Release dated 17 February 2017. Further information regarding MyState Limited and its business activities can be obtained by visiting the company’s website at www.mystatelimited.com.au. Yours faithfully Scott Lukianenko Company Secretary Directors Report & Consolidated Financial Statements For the half year ended 31 December 2016 Directors’ Report for the half‐year ended 31 December 2016 Your Directors present their report on MyState Limited ABN 133 623 962 (the Company) for the half‐year ended 31 December 2016. Directors and Company Secretary The names and particulars of the Directors and Company Secretary in office during the period and since the end of the period are: Directors  Miles L Hampton BEc(Hons), FCIS, FCPA, FAICD Chairman of the board and independent non‐executive Director.  Melos A Sulicich BBus, GAICD, SA FIN Managing Director.  Peter D Armstrong BEc(Hons), DipED, Dip FP, CPA, FAICD, FAMI Independent non‐executive Director.  Brian V Bissaker BEc, FCA Independent non‐executive Director (Appointed 1 May 2016).  Robert L Gordon BSc, MIFA, MAICD, FAMI Independent non‐executive Director.  Colin M Hollingsworth CPA, MAICD, FAMI Independent non‐executive Director.  Sibylle Krieger, LLB (Hons), LLM, FAICD, MBA Independent non‐executive Director (Appointed 1 December 2016).  Stephen Lonie BCom, MBA, FCA, FFin, FAICD, FIMCA Independent non‐executive Director.  Sarah Merridew BEc, FCA, FAICD Independent non‐executive Director. Company Secretary  Scott A Lukianenko Ad Dip BMgmt, Grad Cert BA, GIA (Cert) Company Secretary. 1 MyState Limited ABN 26 133 623 962 Directors’ Report Review of Operations Net Profit after Tax MyState Limited (MyState) reported a net profit after tax of $15.2m for the half year ended 31 December 2016. Sound low-risk result NPAT $m 14.9 Statutory earnings per share remained stable on the prior comparative period (pcp) at 17.3 cents per share, with return on equity decreasing by 20bps to 10.2% over the same period. This result was achieved despite the broad challenges facing the banking sector, including increased competition, continued reductions in interest rates, and increased intensity in regulatory activity. 16.0 14.9 15.1 15.2 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 Significant milestones in technology and digital transformation The result was also accompanied by the achievement of significant milestones in MyState’s program of technology transformation. During the half year, MyState introduced new internet banking and digital services to benefit customers, including Android Pay, Apple Pay, and new MyState Bank internet banking and mobile banking apps. MyState also began the transition of the Group’s core banking platforms to a single core banking platform which will underpin MyState’s transition to an omni-channel, analytical data-driven business, supporting profitable growth. New customer services commenced with the launch of online origination for personal loans and with the implementation of the first phase of a customer relationship management system. High quality asset growth and credit performance High quality loan growth Loan Book $b The banking division’s loan book increased by $278m or 7.2% since June 2016, with the home loan portfolio growing at 2.4 times system. The bank’s focus on lower risk owner occupier and lower LVR home lending underpinned an exemplary asset quality and credit performance. Loan impairment charges reduced to 2bps of gross loans and 30 day arrears and 90 day arrears of 0.54% and 0.26% respectively were well below regional peers and the major banks. Impairment expense fell by $0.85m on pcp. Geographic loan diversification continues, with MyState increasing its loan book size in New South Wales and Victoria. 52.0% of the overall loan book was Tasmania-based at 31 December 2016, down from 55.7% at 30 June 2016. 2 MyState Limited ABN 26 133 623 962 Directors’ Report Income Income increased marginally above the pcp as did net profit after tax. Income uplift in a challenging environment Income $m Operating income increased marginally however the challenging banking environment saw net interest income decline by $0.2m or 0.5% on pcp. Net interest margin (NIM) declined 19bp since June 2016 to 1.94% for the period, reflecting RBA cash rate reductions and a competitive funding market. More recently, competition has appeared to ease and, coupled with a repricing of the variable rate home loan book in early January 2017, margins are expected to improve. The wealth management division reported stable revenue and an increased contribution. Revenue was in line with 2H16 but was down on the pcp. Funds under management increased to $1.05b at 31 December 2016 compared with $1.0b at 30 June 2016, an annualised growth rate of 7.5%. While trustee services volumes were lower, the financial planning business improved revenue over the pcp. Expenditure The Group continues to manage its cost base prudently. Expense growth was 4.74% on the pcp. Excluding the impact of M&A related project costs (as disclosed in the FY16 financial report) of $1.4m that carried over into the early part of the current half year, cost growth was contained to 1.5%. Capital The business has maintained its balance sheet strength, reporting a capital ratio of 13.0%, consistent with the pcp. During the period, S&P upgraded MyState Bank’s BBB rating with a positive outlook to BBB+ with a negative outlook in its recent review, reflecting the sound management of the bank’s balance sheet. The business was also successful in a $10m issuance of subordinated notes and a $300m RMBS issuance during the period. These initiatives will provide funding to enable the continued loan book growth and investment in transformational projects. Dividends The Directors have declared an interim dividend of 14.0 cents per share (pcp: 14.0 cents per share), fully franked, payable on 10 March 2017 to shareholders on the register at the record date of 23 February 2017. Dividend Reinvestment Plan The Board announced the reactivation of the Dividend Reinvestment Plan (DRP) to enable shareholders to participate in further ownership of the Group. The DRP price will be set at 2.5% discount to the volume weighted average price of MYS shares calculated over the 5 trading days between 27 February 2017 and 3 March 2017. 3 MyState Limited ABN 26 133 623 962 Directors’ Report Outlook Looking forward, MyState will continue its program of investment technology and digital transformation, as well as capability across the business to enhance the customer experience and drive productivity improvements. Auditor’s Independence Declaration to the Directors under section 307C of the Corporations Act 2001 The auditor’s independence declaration is set out on the following page and forms part of the Directors’ Report for the half-year ended 31 December 2016. Signed in accordance with a resolution of the Directors: M L Hampton Chairman M A Sulicich Managing Director th 17 February 2017, Hobart. 4 Auditor’s Independence Declaration to the Directors of MyState Limited In relation to our review of the financial report of MyState Limited for the half-year ended 31 December 2016, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct. Joanne Doyle Partner Wise Lord & Ferguson Date: 17 February 2017 5 Consolidated Income Statement for the half year ended 31 December 2016 Notes 31 Dec 2016 31 Dec 2015 $'000 $'000 Interest income Less: Interest expense Net interest income 2 2 90,266 (46,813) 43,453 90,258 (46,595) 43,663 Non‐interest income from banking activities Net banking operating income 2 8,611 52,064 8,565 52,228 Income from wealth management activities Profit from sale of other investments Income from other activities Total operating income 3 4 4 8,395 1,362 15 61,836 9,060 ‐ ‐ 61,288 18,761 10,270 5,181 3,728 1,715 1,433 41,088 18,812 8,681 4,857 3,690 1,797 1,388 39,225 20,748 22,063 (232) 619 Profit before income tax expense 20,980 21,444 Income tax expense 5,790 6,358 Profit for the period 15,190 15,086 Profit attributable to the: Equity holders of MyState Limited 15,190 15,086 17.29 17.29 17.28 17.28 Less: Expenses Personnel costs Administration costs Technology costs Occupancy costs Marketing costs Governance costs Total operating expenses 5 5 5 Profit before impairment expense on loans and advances and income tax expense Less: Impairment expense / (recovery) on loans and advances Basic earnings per share (cents per share) Diluted earnings per share (cents per share) 9 6 6 The accompanying notes form part of these financial statements. 6 MYSTATE LIMITED Consolidated Statement of Comprehensive Income for the half year ended 31 December 2016 Notes Profit for the period 31 Dec 2016 31 Dec 2015 $'000 $'000 15,190 15,086 (695) 239 (619) 385 ‐ (72) (929) 167 Total comprehensive income for the period 14,261 15,253 Total comprehensive income for the period is attributable to: Equity holders of MyState Limited 14,261 15,253 Other comprehensive income Items that may be reclassified subsequently to profit or loss Cash flow hedges: Net gains / (losses) taken to equity Change in fair value of assets classified at fair value through other comprehensive income Income tax effect Total other comprehensive income for the period The accompanying notes form part of these financial statements. 7 MYSTATE LIMITED Consolidated Statement of Financial Posi on as at 31 December 2016 31 Dec 2016 30 Jun 2016 $'000 $'000 96,749 11,026 7,160 385,790 8 4,142,176 8,414 4,047 83,433 80,126 17,875 5,819 355,969 540 3,863,133 9,812 3,664 78,982 Total assets 4,738,803 4,415,920 Liabilities Due to other financial institutions Other liabilities Deposits and other borrowings including subordinated notes Derivatives Employee benefit provisions Tax liabilities 24,450 6,045 4,397,645 680 5,361 3,256 30,710 6,961 4,068,182 517 5,515 4,407 Total liabilities 4,437,437 4,116,292 301,366 299,628 134,836 161,771 4,759 134,756 159,320 5,552 301,366 299,628 Notes Assets Cash and liquid assets Due from other financial institutions Other assets Financial instruments Derivatives Loans and advances Property, plant and equipment Deferred tax assets Intangible assets and goodwill 9 Net assets Equity Share capital Retained earnings Reserves Total equity 11 The accompanying notes form part of these financial statements. 8 MYSTATE LIMITED Consolidated Statement of Changes in Equity for the half year ended 31 December 2016 Share capital Retained earnings General reserve for credit losses Employee equity benefits reserve Hedging reserve Net unrealised gains reserve Total $' 000 $' 000 $' 000 $' 000 $' 000 $' 000 $' 000 At 1 July 2015 Profit for the year Other comprehensive income / (expense) Total comprehensive income for the period 132,670 ‐ ‐ ‐ 155,872 15,086 ‐ 15,086 4,428 ‐ ‐ ‐ 564 ‐ ‐ ‐ (394) ‐ 167 167 ‐ ‐ ‐ ‐ 293,140 15,086 167 15,253 Equity issued under employee share scheme Equity issued under executive long term incentive plan Share based payment expense recognised Dividends paid At 31 December 2015 97 46 ‐ ‐ 132,813 ‐ ‐ ‐ (12,659) 158,299 ‐ ‐ ‐ ‐ 4,428 ‐ (46) 74 ‐ 592 ‐ ‐ ‐ ‐ (227) ‐ ‐ ‐ ‐ ‐ 97 ‐ 74 (12,659) 295,905 At 1 July 2016 Profit for the year Other comprehensive income / (expense) Total comprehensive income for the period 134,756 ‐ ‐ ‐ 159,320 15,190 ‐ 15,190 4,428 ‐ ‐ ‐ 675 ‐ ‐ ‐ 16 ‐ (496) (496) 433 ‐ (433) (433) 299,628 15,190 (929) 14,261 80 ‐ ‐ ‐ ‐ ‐ 80 ‐ ‐ 134,836 ‐ (12,739) 161,771 ‐ ‐ 4,428 136 ‐ 811 ‐ ‐ (480) ‐ ‐ ‐ 136 (12,739) 301,366 Equity issued under executive long term incentive plan Share based payment expense recognised Dividends paid At 31 December 2016 The accompanying notes form part of these financial statements. 9 MYSTATE LIMITED Consolidated Statement of Cash Flows for the half year ended 31 December 2016 Notes 31 Dec 2016 31 Dec 2015 $' 000 $' 000 Cash flows from operating activities Interest received 94,177 92,685 Interest paid (48,925) (49,306) Fees and commissions received 16,374 16,894 Other non‐interest income received 461 547 Payments to suppliers and employees (40,300) (55,826) Income tax paid Net cash flows from / (used in) operating activities (6,928) 14,859 (10,928) (5,934) Proceeds from sale of financial assets 3,857 ‐ Purchase of intangible assets (5,124) (1,244) Cash flows from investing activities Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment 14 37 (419) (122) (238,390) Net increase in loans to customers Net (increase) / decrease in amounts due from financial institutions Net cash flows from / (used in) investing activities (310,760) (11,652) (251,371) Cash flows from financing activities Net increase in deposits and other borrowings Net increase / (decrease) in amounts due to financial institutions Employee share issue Dividends paid Net cash flows from / (used in) financing activities 329,463 (4,280) 80 (12,739) 312,524 287,618 9,171 145 (12,659) 284,275 16,623 80,126 96,749 26,970 66,290 93,260 Net increase in cash held Cash at beginning of the period Closing cash carried forward (282,824) (26,264) 7 12 The accompanying notes form part of these financial statements. 10 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 1 Summary of significant accounting policies 1.1 Statement of compliance the financial statements and The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and Australian Accounting Standard AASB 134 'Interim Financial Reporting'. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The half year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report for the year ended 30 June 2016. ‐38985 1.2 Basis of preparation The condensed consolidated financial statements comprise of MyState Limited (the 'Company') and the entities it controlled during the half year. They have been prepared on the basis of historical cost, except for the revaluation of certain non‐current assets and financial instruments. The financial report has been presented in Australian dollars. MyState Limited is a company of the kind referred to in ASIC Class Order 98/100, dated 10 July 1998 and, in accordance with that Class Order, amounts in the Directors' report and the half year financial report are rounded off to the nearest thousand dollars, unless otherwise indicated. For the purpose of these financial statements, the following abbreviations have been applied: . Consolidated entity / Group TPT Period ASIC MyState Limited and the entities it controlled at the end of, or during the period; Tasmanian Perpetual Trustees Limited; the half year ended 31 December 2016; and Australian Securities and Investments Commission. The comparative information disclosed in the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows is for the six months ended 31 December 2015. The comparative information disclosed in the Consolidated Statement of Financial Position is as at 30 June 2016. Comparative information may contain reallocation of amounts. Any adjustments are to assist in providing more meaningful information within the financial statements. The accounting policies and methods of compilation are the same as those adopted in the most recent annual financial report which is for the year ended 30 June 2016. 11 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 31 Dec 2016 $ '000 31 Dec 2015 $ '000 Interest income Loans and advances Investment securities Total interest income 85,239 5,027 90,266 84,872 5,386 90,258 Interest expense At call deposits Fixed term deposits Total interest expense 5,664 41,149 46,813 6,042 40,553 46,595 Non‐interest income from banking activities Transaction fees Loan fees Banking commissions Other banking operations income Total non‐interest income from banking activities 3,816 2,541 1,795 459 8,611 3,949 2,364 1,828 424 8,565 4,680 3,715 8,395 4,672 4,388 9,060 1,362 ‐ 2 Income from banking activities 3 Income from wealth management activities Funds management income Other fees and commissions Total income from wealth management activities 4 Income from other activities Profit from sale of other investments In the half year ended 31 December 2016, the Group disposed of its investment in listed equities. The carrying value of these shares at the date of disposal was $3,841,000. Dividends from other corporations Total income from other activities 15 15 ‐ ‐ 1,073 1,069 87 966 75 127 945 70 1,279 368 3 ‐ 250 8 5 Expenses The following items are included within each item of specified expenses: Occupancy costs include: Depreciation ‐ leasehold and freehold improvements Technology costs include: Operating lease payments Amortisation ‐ computer software Depreciation ‐ computer equipment Administration costs include: Significant due dilligence project costs Amortisation ‐ other intangibles Depreciation ‐ motor vehicles 12 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 31 Dec 2016 31 Dec 2015 cents cents 6 Earnings per share Basic earnings per share Diluted earnings per share 17.29 17.29 17.28 17.28 The following information reflects the income and share data used in the calculation of basic and diluted earnings per share: Profit for the period Weighted average number of ordinary shares used in calculating basic and diluted earnings per share: 31 Dec 2016 31 Dec 2015 $ '000 15,190 $ '000 15,086 Number Number 87,865,452 87,311,633 31 Dec 2016 31 Dec 2015 $ '000 $ '000 7 Dividends Dividends paid 2016 Final dividend paid: 14.5 cents per share (2015 Final dividend: 14.5 cents per share) 12,739 12,659 The dividends paid during the period were fully franked at the 30 percent corporate tax rate. 13 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 8 Segment information The Group has identified two operating divisions and a corporate division which are its reportable segments. These divisions offer different products and services and are managed separately. The Group's management committee review internal management reports for each of these divisions at least monthly. Banking division The banking division's product offerings include lending, encompassing home loans, personal, overdrafts, lines of credit and commercial products; transactional savings accounts and fixed term deposits and insurance products. It delivers these products and services through its branch network, as well as through the mortgage broker channel. The banking division is conducted by the MyState Bank Group. Prior to 30 September 2015, the Rock Building Society Group formed part of this group and was a second ADI. On 30th September 2015, the rights and obligations of the Rock Building Society Group were transferred to MyState Bank Limited and, as a result, the banking group is now comprised of one ADI and its subsidiaries. Wealth management division The wealth management division is a provider of funds management, financial planning and trustee services. It operates predominantly within Tasmania and holds over $1 billion in funds under management on behalf of personal, business and wholesale investors as the responsible entity for 10 managed investment schemes. The wealth management division is conducted by Tasmanian Perpetual Trustees Limited. Tasmanian Perpetual Trustees Limited is a trustee company licensed within the meaning of Chapter 5D of the Corporations Act 2001 and is the only private trustee company with significant operations in Tasmania. Corporate and consolidation division The corporate cost centre is responsible for the governance of the Group. The corporate cost centre charges the operating divisions on a cost recovery basis for costs it has incurred. This division incorporates intercompany eliminations between the banking division and the wealth management division. Half year ended 31 December 2016 Interest income Interest expense Other income Other expenses Income tax expense Segment net profit after income tax Segment assets Segment liabilities Half year ended 31 December 2015 Interest income Interest expense Other income Other expenses Income tax expense Segment net profit after income tax Balances as at 30 June 2016 Segment assets Segment liabilities Banking Wealth management Corporate and consolidation Total $ '000 $ '000 $ '000 $ '000 90,065 (46,813) 8,659 (33,941) (5,240) 12,730 78 ‐ 9,782 (6,346) (1,054) 2,460 123 ‐ (58) (569) 504 ‐ 90,266 (46,813) 18,383 (40,856) (5,790) 15,190 4,659,471 4,433,703 28,287 1,949 51,045 1,784 4,738,803 4,437,437 90,048 (46,595) 8,656 (33,767) (5,460) 12,882 100 ‐ 9,060 (6,058) (898) 2,204 110 ‐ (91) (19) ‐ ‐ 90,258 (46,595) 17,625 (39,844) (6,358) 15,086 4,335,161 4,110,774 28,483 2,378 52,276 3,140 4,415,920 4,116,292 14 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 31 Dec 2016 30 Jun 2016 $' 000 $' 000 Classification of loans and advances Residential loans secured by mortgage Personal loans and unsecured overdrafts Overdrafts secured by mortgage Commercial loans Total loans and advances 3,953,001 79,373 57,065 53,649 4,143,088 3,674,988 79,565 59,308 50,330 3,864,191 Specific provision for impairment Collective provision for impairment Total loans and advances net of provisions for impairment 666 246 4,142,176 567 491 3,863,133 567 99 666 172 395 567 9 Loans and advances Provision for impairment Specific provision for impairment Opening balance (1) Charge / (credit) against profit Closing balance of specific provision for impairment Collective provision for impairment Opening balance (1) 491 Charge / (credit) against profit 246 Write‐off of previously provisioned facilities (491) Closing balance of collective provision for impairment 246 (1) The opening balance for the comparative period is 1 January 2016, the closing balance is 30 June 2016. 739 204 (452) 491 31 Dec 2016 31 Dec 2015 $' 000 $' 000 Charge to profit for impairment on loans and advances at amortised cost ‐ Increase / (decrease) in specific provision for impairment ‐ Increase / (decrease) in collective provision for impairment ‐ Bad debts recovered ‐ Bad debts written off directly Total impairment / (recovery) on loans and advances at amortised cost 99 (245) (629) 543 (232) 57 192 (634) 1,004 619 There are no loans that individually represent 10% or more of shareholders' equity. The banking division's customers are predominantly in the States of Tasmania, Queensland, New South Wales and Victoria. The majority of Wealth Management loans are advanced to customers in the State of Tasmania. 15 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 10 Fair value of financial instruments Classification of financial instruments Cash and liquid assets, amounts due to financial institutions and amounts due from financial institutions are carried at cost. As these assets are short term assets, their cost is considered to approximate their fair value. The following financial assets and liabilities are also carried at amortised cost: ▪ Financial instruments; ▪ Loans and advances; ▪ Deposits; and ▪ Other borrowings including subordinated notes. The aggregate net fair values of financial assets and financial liabilities, which are carried at amortised, cost are: 31 Dec 2016 Carrying Net fair value value 30 Jun 2016 Carrying Net fair value value $ '000 $ '000 $ '000 $ '000 Financial assets Financial instruments Loans and advances Total financial assets 385,790 4,142,176 4,527,966 385,277 4,147,045 4,532,322 351,174 3,863,133 4,214,307 351,007 3,862,014 4,213,021 Financial liabilities Deposits Other borrowings including subordinated notes Total financial liabilities 3,480,518 917,127 4,397,645 3,482,692 917,127 4,399,819 3,262,377 805,805 4,068,182 3,262,826 805,805 4,068,631 Fair value hierarchy The level in the fair value hierarchy of the inputs used in determining the fair values is shown below. The fair value of these assets is: Level 1 ‐ inputs that are prices quoted for identical instruments in active markets; Level 2 ‐ inputs based on observable market data other than those in level 1; and Level 3 ‐ inputs for which there is no observable market data. Where the expected maturity is in excess of 12 months, the fair value is discounted to its present value. During the year, there have been no material transfers between levels of the fair value hierarchy. The Group has determined this approach based on a reassessment of the categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Significant unobservable inputs, which are sensitive to reasonably possible changes in non‐market assumptions, would not have a material impact on the consolidated result. 16 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 10 Fair value of financial instruments Fair value hierarchy (continued) Level 1 value Level 2 value Level 3 value Total value $ '000 $ '000 $ '000 $ '000 31 December 2016 Financial assets Financial instruments Loans and advances ‐ ‐ 385,277 ‐ ‐ 4,147,045 385,277 4,147,045 Financial liabilities Deposits Other borrowings including subordinated notes ‐ ‐ 3,482,692 917,127 ‐ ‐ 3,482,692 917,127 30 June 2016 Financial assets Financial instruments Loans and advances ‐ ‐ 351,007 ‐ ‐ 3,862,014 351,007 3,862,014 Financial liabilities Deposits Other borrowings including subordinated notes ‐ ‐ 3,262,826 805,805 ‐ ‐ 3,262,826 805,805 There has not been an impact on profit and loss of fair value movements of assets that are within Level 3 of the fair value hierarchy. 17 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 31 Dec 2016 30 Jun 2016 $ '000 $ '000 134,836 134,756 11 Share capital Issued and paid up capital Ordinary shares fully paid Movements in share capital 31 December 2016 Number Amount of shares $ '000 87,854,255 134,756 18,729 87,872,984 80 134,836 Ordinary Shares Opening balance as at 1 July 2016 Shares issued pursuant to the: ‐ Employee share scheme of the consolidated entity Closing balance as at 31 December 2016 31 December 2015 Number Amount of shares $ '000 87,283,417 132,670 27,901 21,054 87,332,372 46 97 132,813 Ordinary Shares Opening balance as at 1 July 2015 Shares issued pursuant to the: ‐ Executive long term incentive plan ‐ Employee share scheme of the consolidated entity Closing balance as at 31 December 2015 18 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended 31 December 2016 31 Dec 2016 31 Dec 2015 $ '000 $ '000 12 Statement of Cash Flows For the purpose of the Statement of Cash Flows, cash and liquid assets includes: Notes, coins and cash at bank Other short term liquid assets Total cash and liquid assets 67,025 29,724 96,749 57,628 35,632 93,260 31 Dec 2016 30 Jun 2016 $ '000 $ '000 13 Customer commitments (a) Loans approved but not advanced to borrowers 49,587 49,360 (b) Undrawn continuing lines of credit 74,619 76,415 (c) Performance guarantees 1,640 1,876 There have been no material changes in contingent liabilities or expenditure commitments since the end of the last reporting period ended 30 June 2016. 19 MYSTATE LIMITED Notes to the consolidated financial statements for the half year ended