Announcement PDF FY24 Results & Proposed merger with Auswide Bank 19 August 2024 1 Agenda 1 Overview of FY24 Brett Morgan { Managing Director & CEO 3 Proposed merger with { Auswide Bank Limited 5 Additional merger information{ Brett Morgan & Gary Dickson 2 4 FY24 financial results { Gary Dickson Chief Financial Officer Additional FY24 { results information 2 Overview of FY24 1 Brett Morgan Managing Director & CEO 3 FY24 summary Balancing growth and return in a challenging environment. Capital up. Dividend stable $8.0b $5.9b $35.3m Home loan book +2.0% on pcp Customer deposits -4.9% on pcp Net profit after tax -8.3% on pcp 16.4% 32.0 cps 23.0 cps Total capital +100 bps on pcp Earnings per share -9.7% on pcp Stable dividend +58 Net Promoter Score | Record level of customer advocacy Note: All figures compare FY24 to FY23 as the previous corresponding period (pcp) unless otherwise indicated. All amounts shown represent statutory results unless otherwise stated 4 Delivered on key FY24 strategic initiatives Bank New digital capability Wealth Trustee Services offer expanded Group Operating costs well managed ● Successfully launched our new internet and mobile banking platform ● Delivering on Trustee Services optimisation program ● Operating costs down year on year in an inflationary environment ● Enhanced online origination and increased customer security ● Positive business momentum ● Continual focus on operating efficiencies 5 5 FY24 financial results 2 Gary Dickson Chief Financial Officer 6 FY24 financial performance Metric FY24 FY23 Total operating income ($m) 152.4 160.4 -5.0% ▼ Total operating expenses ($m) 101.0 102.7 -1.6% ▼ Core earnings ($m) 1 51.4 57.7 -10.9% ▼ Statutory net profit after tax ($m) 35.3 38.5 -8.3% ▼ Statutory earnings per share (cps) 32.0 35.5 -9.7% ▼ ● Optimised growth and return in a challenging environment ▼ ● Costs well managed in the context of high inflation Net interest margin (%) (annualised) 1.45% 1.63% Change v FY23 -18 bps Bank cost-to-income ratio (%) 65.3% 60.8% +450 bps ▲ Group cost-to-income ratio (%) 66.3% 64.0% +228 bps ▲ Total capital ratio (%) 16.4% 15.4% +100 bps ▲ Return on average equity (%) 7.7% 8.7% -100 bps ▼ Dividend–fully franked (cps) 2 23.00 23.00 Steady  ● NIM down year-on-year; stable half-on-half ● Stronger capital position ● Final dividend in line with the Interim dividend of 11.5 cents per share Note: Financial performance figures compare FY24 to FY23 as the previous corresponding period (pcp). A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation and totals may vary slightly due to rounding. 1. 2. Operating profit before bad and doubtful debts expense and income tax expense Final dividend of 11.5 cps payable to shareholders on the register at the record date of 23 August 2024. Payment date is 16 September 2024 7 Full year NPAT Revenue challenges partially offset by well-managed expenses Net profit after tax ($m) 1.6 1.1 -8.0 1.8 1.3 -1.0 38.5 35.3 -8.3% Decrease FY23 Statutory NPAT Net interest income Other banking income Wealth management income Operating expenditure Net bad and doubtful debts Increase Income tax expense FY24 Statutory NPAT ● NPAT decrease of only 8.3% in a very challenging market; 2H NPAT up on 1H ● Net interest income down 6.1% over the year; NIM stable half-on-half ● Other banking income down 7.3% over the year; 2H up on 1H ● Wealth management income up 7.7% over the year; 2H significantly up on 1H ● Total operating costs well managed; down 1.6% on pcp 8 Operating costs well-managed Operating costs ($m) 1.5 102.7 MyState Bank operating efficiency ratio 1 -4.1 2.3 0.74% -1.4 0.67% 0.58% 0.60% Jun-23 Jun-24 101.0 Increase Decrease FY23 Personnel Marketing Technology Other FY24 Jun-21 Jun-22 ● Operating costs closely managed in a high-inflationary environment, down 1.6% ($1.7m) ● Increase in Personnel costs largely due to salary inflation ● Reduction in marketing costs reflects the need for lower retail deposit growth ● Technology costs increase reflects continued investment in key customer, risk and regulatory initiatives ● Other expenses lower due to non-recurring expenses in pcp ● Since 2021 MyState Bank’s operating efficiency has improved by 19%1 1. As internally measured by: Annualised operating expenses less marketing costs ⁄ Average lending assets + Average customer deposits. 9 Challenging margin environment; NIM stable half-on-half Average NIM trend NIM waterfall Origination costs Increase 0.01% 1.28% 1.45% 1.46% 1.45% FY24 1H24 2H24 1.45% 0.29% 0.05% 0.06% 1.63% FY23 1.63% Decrease 0.01% 0.30% 1.45% Asset yield Asset mix Origination cost Funding cost Funding mix Other including capital FY24 FY23 ● Constantly optimising the balance between growth and margin ● Year-on-year margins impacted by home loan and deposit price competition; deposit switching; increase in securitisation funding and higher liquids holdings ● NIM stable half-on-half 10 Quality home loan book Home loan book – FY24 Quarterly applications and settlements ($b) Applications 1.0 Settlements 0.9 0.8 0.5 22% 78% 8.0 6.8 0.9 0.7 0.5 0.3 0.6 0.4 0.8 0.7 0.4 5.3 FY22 <80% LVR 80-85% LVR 5.9 6.1 FY23 FY24 85-90% LVR 0.4 Home loan book – applications and settlements ($b) Home loan book LVR profile ($b) 7.8 0.5 >90% 85%-90% 80% - 85% <80% 23% 1H 2H Applications 1Q24 4.9 Settlements 2.6 77% >90% LVR ● Home loan portfolio up $160m to $8.0b ● Growth in low risk <80% LVR lending: +$270m ● Q2 and Q3 applications a function of margin management ● 2H applications 29% higher than 1H; Q4 settlements strongest for the year. ● Portfolio LVR 55.7% at 30 June 2024 3.0 3.5 4Q24 2.6 1.8 FY22 90+ days S&P arrears data 2.40% 3Q24 3.2 1.6 FY21 2Q24 0.3 0.6 FY23 FY24 MyState SPIN Majors SPIN Regionals 2.00% 1.60% 1.20% 0.80% 0.40% 0.44% 0.00% ● Arrears remain below industry average with 90+ days at 0.44% 11 TPT Wealth providing income diversification Funds under management ($m) Operating income ($m) 14.8 15.4 14.3 5.2 5.0 9.6 9.3 FY22 FY23 Investment services +0.2% 1,062 994 996 Jun-23 Jun-24 7.4 8.0 FY24 Jun-22 Trustee services ● TPT delivered $15.4m in fee revenue, driven by strong performance in Trustee services ● Funds under management steady year on year; fall in Investment services revenue driven by a reduction in Growth funds management fee ● Improved operating efficiency with underlying expenses 16% lower than pcp ● Solid uplift in NPAT ● TPT’s competitive focus is centred on growing the Cash and Income funds and Trustee Services 12 Proposed merger with Auswide Bank Limited 3 Brett Morgan Managing Director & CEO 13 Merger overview • • Merger overview Compelling strategic rationale • MyState Limited (MyState) has signed a scheme implementation agreement (SIA) to merge with Auswide (the Proposed Merger) Under the Proposed Merger, Auswide shareholders would receive 1.112 MyState shares per Auswide share. This implies 65.9% pro forma ownership of the combined Group for MyState shareholders1 Auswide shares will be acquired by MyState subsidiary, MyState Bank Limited, with the consideration shares to be issued by MyState Limited, which will continue as the parent company of the merged Group (MergeCo) Targeting implementation in December 2024, subject to conditions in the SIA being satisfied • • • • Combination of two quality, complementary, customer centric businesses Significantly enhanced scale and diversification Increased capacity to invest in profitable growth opportunities Significant shareholder value creation • Estimated cost synergies of $20m–$25m per annum equal to 13% to 16% of the FY24 pro forma combined cost base with full run rate expected to be achieved by FY27 Potential revenue from new growth and cross-sell opportunities Expected to be earnings dilutive in FY25 due to front-loaded transaction and integration costs Expected to be double digit earnings accretive in FY26 on a post synergies run rate basis2 • Attractive financial • outcomes • • Board and senior management Conditions • • • The MergeCo Board will comprise four non-executive directors from MyState and three non-executive directors from Auswide Brett Morgan, current Managing Director and Chief Executive Officer of MyState, will be MD & CEO of MergeCo Sandra Birkensleigh, current Chair of Auswide, to be the Chair of MergeCo and Warren Lee to be the Chair of TPT Wealth • Implementation of the Merger is conditional on regulatory approvals, Auswide shareholder approval, court approval, third party consents, independent expert conclusions and other customary conditions No prescribed events and no material adverse changes MyState and Auswide have agreed a mutual break fee of $2m, payable in certain circumstances • • Note: 1. Exchange ratio assumes that Auswide raises $15m in equity through its placement and SPP as announced on 19-Aug-24, lower investor participation may impact final exchange ratio and ownership outcomes. Auswide has concurrently entered a binding agreement to acquire 100% of Specialist Equipment Leasing Finance Company Pty Limited (Selfco), an established non-bank small to medium enterprise asset finance lender. If the Selfco transaction does not close on or before 30 September 2024, Auswide shareholders are expected to receive a consideration that results in 33.6% pro forma ownership in the combined Group which is equivalent to an exchange ratio of 1.112x new MyState shares per Auswide share. 2. Excluding integration and transaction costs. 14 Strong strategic rationale for merger with Auswide Opportunity to significantly accelerate the earnings and growth profile of the Group Opportunity MergeCo Combination of two quality, complementary, customer centric businesses • • • Alignment of strategy and values with a shared customer centric culture Strong operating histories with quality loan books evidenced by low arrears and loyal customer bases Employees of MergeCo will benefit from greater opportunities as part of a larger business Significantly enhanced scale and risk diversification • • • • • Lending assets of $12.5 billion, funded with $9.6 billion of customer deposits1 Improved scale and operating efficiency with a stronger and larger balance sheet and increased funding flexibility Number of customers to increase from c. 180,000 to c. 272,000 Further diversification of lending portfolio Increased exposure to the Queensland market with its strong fundamental growth drivers Increased capacity to invest in profitable growth opportunities • • • • • Additional capacity to invest in profitable growth opportunities Increased ability to invest in enhancing digital customer experience Optimised investment in data, digital, regulatory, risk management and cyber security Increased ability to invest in capability across people, processes and systems Continued support for the communities in which we operate Significant shareholder value creation • Significant pre-tax cost synergies of $20 - $25m p.a. to be realised • Main sources of synergies include: • Governance & people, • Technology, and • Other, including consolidation of third party providers • Merged entity will reaffirm the Group’s inclusion in the ASX300 Note: 1. Based on unaudited FY24 financials for Auswide. 15 Merged entity combination a compelling offering Opportunity to significantly accelerate the earnings and growth profile of the Group MyState Brand Tasmania based retail bank together with one of Australia’s oldest Trustee and funds management businesses Auswide Queensland based retail bank helping Australians achieve home ownership c. 92,000 customers MergeCo Combination of two quality customercentric businesses with reach across the eastern Seaboard Customers c. 180,000 customers c. 272,000 customers Distribution 7 branches across Tasmania; digital channels; mortgage brokers and mobile lenders; an Australian-based contact centre, estate planning and administration team 16 branches across Queensland; digital channels; mortgage brokers; mobile lenders; private bankers and an Australian-based contact centre 23 branches in Tasmania and Queensland with reach across the country through digital touchpoints, contact centres and brokers Product Home lending, savings and everyday banking solutions, asset management and trustee services Home lending, savings and everyday banking solutions, credit cards and personal loans Opportunity to optimise product and service offering 16 Improved geographical diversification The proposed merger with Auswide will increase the loan footprint across Tasmania, Victoria and New South Wales and strengthen the presence in the fast-growing Queensland market Home loan geographic distribution (%) MergeCo Auswide1,2 MYS 2.5% 5.7% 19.7% 31.6% 3.6% 13.1% 20.6% 18.2% 15.4% 20.0% 19.7% TAS Note: 1. Based on unaudited FY24 financials. 2. Auswide does not include Selfco. 34.4% 61.5% 23.8% VIC QLD NSW WA SA ACT NT 17 Key pro forma financial metrics The combined entity will have significantly increased scale, a larger capital base, and a more diversified home loan and deposit portfolio, improving its financial resilience As at 30 June 2024 MyState Auswide1,2,3 MergeCo4 Gross loans and advances ($bn) 8.0 4.4 12.5 Deposits ($bn) 5.9 3.7 9.6 Total assets ($bn) 9.2 5.3 14.4 Net assets ($m) 464.9 289.8 754.7 Total operating income ($m) 152.4 70.9 223.3 Core earnings ($m) 51.4 16.6 68.0 NPAT ($m) 35.3 11.2 46.5 Net interest margin (%) 1.45% 1.19% 1.36% Cost to income (%) 66.3% 76.6% 69.6% Return on average equity (%) 7.7% 3.9% 6.2% CET1 ratio (%) 12.0% 12.1% 12.1% Note: 1. Based on unaudited FY24 financials. 2. Auswide does not include Selfco 3. Adjusted for MyState’s differential accounting treatment of broker commissions and issuance costs. Please refer to page 34 for a reconciliation between MyState and Auswide’s accounting bases. 4. Excluding impacts of synergies, integration costs and expected accounting adjustments, unless stated otherwise. 18 Significant shareholder value creation The transaction is expected to yield annual pre-tax cost synergies of $20m - $25m achieved over a three-year period Pre-tax synergy run-rate benefits of $20m to $25m Indicative synergy breakdown • Committed to a cohesive integration strategy, leveraging the strengths of both organisations Governance & people Technology c. $12-15m c. $6-7m • Governance & people synergies to be largely achieved through removal of duplicated Board and Executive roles, natural staff turnover and redundancies • More than 50% of full run-rate synergies expected in the first 18 months post completion • Pre-tax integration costs of c. $29m, with the majority of these expenses anticipated in the initial two years Other c. $2-3m • No anticipated change to branch footprint Potential additional upside from: • Executing on profitable growth opportunities • Capturing value from greater purchasing power 19 Indicative transaction timetable Lodge regulatory applications August 2024 Lodge Scheme Booklet with ASIC and ASX September 2024 First Court date application served on ASIC October 2024 First Court date October 2024 Dispatch Scheme Booklet October 2024 Scheme meeting held (Auswide shareholder vote) November / December 2024 Second Court date December 2024 Lodge Court order with ASIC (Effective Date) December 2024 Record date December 2024 Implementation date December 2024 20 Additional FY24 results information 4 21 Recapping FY24 Key financial results for FY24 were in line with the outlook provided at the half. Lending and deposit composition results reflect the decision to actively optimise the balance between growth and returns. MyState Bank lending MyState Bank deposit composition Earnings per share MyState Bank underlying cost to income ratio Return on equity FY24 guidance FY24 result Lending growth 1.0x system 0.4x system Customer deposits >70% of funding 69.1% 31.1 to 32.8 cents per share 32.0 cps 64% to 66% 65.3% Between 7.5% and 8.0% 7.7% 22 FY24 financial performance First half v second half FY24 ● Revenue slightly up on 1H24 ● Expenses remained well managed ● Sound capital position ● Final dividend consistent with Interim dividend of 11.5 cents per share Metric 1H24 2H24 1H24 v 2H24 FY24 Total operating income ($m) 75.8 76.6 +1.1% ▲ 152.4 Total operating expenses ($m) 49.8 51.2 +2.7% ▲ 101.0 Core earnings ($m) 1 26.0 25.4 -2.1% ▼ 51.4 Statutory net profit after tax ($m) 17.5 17.8 +2.0% ▲ 35.3 Statutory earnings per share (cps) 15.9 16.1 +1.5% ▲ 32.0 Net interest margin (%) (annualised) 1.46% 1.45% -1 bps ▼ 1.45% Bank cost-to-income ratio (%) 64.4% 66.3% +190 bps ▲ 65.3% Group cost-to-income ratio (%) 65.7% 66.8% +110 bps ▲ 66.3% Total capital ratio (%) 15.6% 16.4% +80 bps ▲ 16.4% Return on average equity (%) 7.7% 7.6% -10 bps ▼ 7.7% Dividend–fully franked (cps) 2 11.5 11.5 Steady  23.0 Note: Financial performance figures compare 2H24 to 1H24 as the prior period (pp).. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation and totals may vary slightly due to rounding. 1. 2. Operating profit before bad and doubtful debts expense and income tax expense Final dividend of 11.5 cps payable to shareholders on the register at the record date of 23 August 2024. Payment date is 16 September 2024 23 Operating costs Operating costs breakdown ($m) ● Operating costs closely managed in a high-inflationary -1.6% +7.0% 95.9 3.0 4.3 102.7 3.2 4.4 10.3 environment, down 1.6% ($1.7m) 101.0 3.3 4.1 6.1 10.3 17.8 17.7 21.4 19.1 20.3 21.4 ● Personnel costs increase reflects underlying salary inflation partly offset by lower FTE (30 June 2024: 345 vs. 2023: 352) ● Technology expense increase reflects continued investment in key customer, risk and regulatory initiatives. ● Administration costs in FY23 includes non-recurring operational related expenses, Uplift since FY22 reflects volume related increases across payment systems, printing, postage, etc. 42.8 44.3 45.8 ● Marketing spend reduced with lower retail deposit growth reflecting lower loan book growth and higher securitisation; deferral of spend ahead of the launch of the internet and mobile banking FY22 FY23 FY24 Personnel costs Technology costs Administration costs Marketing costs Occupancy costs Governance costs app in early July 2024. ● Governance and Occupancy costs relatively stable 24 Diversified funding mix Customer deposits ($b) -4.9% 6.2 5.6 4.5 3.4 Funding mix (%) 5.9 3.1 17.6% 14.4% 16.3% 9.0% 12.6% 10.9% 73.4% 73.1% 72.8% 69.1% Jun-21 Jun-22 Jun-23 Jun-24 Customer deposits Wholesale funding 3.4 22.0% 8.9% 3.0 1.5 Jun-21 2.2 Jun-22 Customer deposits at term 2.8 2.8 Jun-23 Jun-24 Customer deposits at call Securitisation ● Securitisation remains an important source of funding and provides additional capital flexibility (largest MyState deal issued in Sept-23: $500m) ● RMBS deal provided flexibility to run-off price sensitive at-call deposits ● Award winning Bonus Saver Account steady (+0.6% on 30 June 2023) ● Term Funding Facility fully repaid by 30 June 2024 ● Focus returns to growing customer deposits following launch of new internet banking platform and mobile app in early July 2024 25 Increased total capital Capital 1.25% 0.92% 1.01% 15.43% 0.36% 0.13% 0.02% 0.12% 16.42% 1.98% 1.89% 2.43% 2.32% CET1 capital AT1 capital Tier 2 capital Increase Decrease 12.01% 11.22% Jun-23 Capital initiatives Securitisation activity Profit Dividends paid Secured mortgage lending Capitalised intangibles Other asset growth Jun-24 ● MyState remains well capitalised with total capital ratio up 99 bps to 16.42% ● During the year, capital relief term RMBS and warehouse drawdowns were completed ● Dividends supported by the organic generation of capital 26 Capital, stock and flow metrics 30-Jun-24 31-Dec-23 30-Jun-23 Movement (Jun-Jun ‘23) $m $m $m $m % Qualifying capital Common equity tier 1 capital (CET1) Ordinary share capital 230.42 229.33 227.31 3.12 1% Retained earnings 241.65 239.62 237.61 4.09 2% Accumulated other comprehensive income (and other reserves) -0.70 0.96 -1.13 0.44 (39%) Total common equity Tier 1 capital 471.38 467.99 463.78 7.64 2% - Less: Regulatory capital adjustments Stock metrics Jun-24 Dec-23 Jun-23 Broker 83% 82% 82% Proprietary 17% 18% 18% Owner occupied 79% 79% 80% Investor 20% 20% 19% Non housing 1% 1% 1% Principal & Interest 93% 93% 93% Interest only 7% 7% 7% Variable 90% 84% 79% Fixed 10% 16% 21% 18% 17% 16% Goodwill (Net of related tax liability) Deferred tax assets 49.77 4.71 49.76 2.64 49.76 1.91 0.01 2.80 0% 147% LMI Cash flow hedge reserve 0.51 50.77 40.68 2.17 53.44 40.68 4.61 53.9 40.68 (4.10) (3.13) - (89%) (6%) 0% Flow metrics Jun-24 Dec-23 Jun-23 Broker 92% 87% 87% 7.42 10.51 3.77 3.65 97% Proprietary 8% 13% 13% 153.86 317.52 159.19 308.80 154.63 309.15 (0.77) 8.41 (0%) 3% Owner occupied 79% 70% 77% Investor 20% 29% 22% 64.11 63.97 63.84 0.27 100% Non housing 1% 1% 1% 381.62 372.77 372.99 8.69 2% Principal & Interest 91% 84% 83% Interest only 9% 16% 17% Capitalised expenses Investments in controlled entities Other adjustments Total regulatory adjustments Net common equity tier 1 capital Additional tier 1 capital Total Tier 1 capital Tier 2 capital Subordinated notes (ii) 49.95 49.92 49.9 0.05 0% Variable 98% 97% 98% Equity reserve for credit losses 2.37 2.37 2.37 - 0% Fixed 2% 3% 2% Total Tier2 capital Total capital Credit risk weighted assets Operating risk 52.32 52.29 52.27 0.05 0% LMI 10% 11% 10% 433.94 2403.00 240.30 2643.30 425.06 2,479.23 247.92 2,727.15 425.26 2,504.96 250.50 2,755.46 8.73 (101.95) (10.20) (112.14) 2% (4%) (4%) (4%) By state (% of flow): NSW 20% 22% 23% QLD 20% 18% 18% TAS 32% 28% 23% Total risk weighted assets 30-Jun-24 31-Dec-23 30-Jun-23 Movement % CET1 capital ratio 12.01% 11.32% 11.22% 0.97% VIC 24% 27% 30% Tier 1 capital ratio 14.44% 13.67% 13.54% 1.08% Other states 4% 6% 6% Total capital ratio 16.42% 15.59% 15.43% 1.16% 27 Home loan book Home loan book composition ($b) Loan balance and lending flows ($b) 0.4 1.8 7.8 1.3 0.9 0.2 1.2 Increase 0.2 8.0 Decrease Jun-23 New funding Discharges Redraw & Repayments Interest 78% 6.8 0.2 8.0 0.4 0.1 1.1 1.2 1.0 5.4 Jun-22 Jun-24 7.8 Own. Occ. P&I 6.1 6.3 Jun-23 Jun-24 Inv. P&I Own. Occ. I/O 78% Inv. I/O Home loan concentration by state NT 0.3% | 0.1% ● Growth driven by lower risk owner occupied P&I lending with LVR <80% ● Variable rate lending as a proportion of total flow decreased to 93% in QLD WA 19.6% | 20.2% 2.5% | 1.6% 2H24 (97% in 1H24, 96% in 2H23) SA 1.4% | 0.8% ● While run-off remains a sector wide challenge the run-off rate NSW decreased 140 bps to 25.2% (26.6% in pcp) 19.7% | 20.0% Concentration Low High June 2024 June 2021 VIC ACT 1.1% | 1.0% 23.8% | 18.0% TAS 31.6% | 38.3% 28 Fixed rate home loan profile New HL flow – fixed rate issuance Fixed rate HL expiry schedule as at 30 Jun 24 $533m 400.0 m 100% 361.4 m 90% 350.0 m 80% 300.0 m 70% 250.0 m $294m $249m 60% 200.0 m $178m 50% 155.2 m 40% 119.5 m 150.0 m 30% 100.0 m $23m $43m $25m $56m 39.5 m 50.0 m 37.4 m 20% 36.9 m 6.6 m .3 m .5 m .0 m 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 Jun 24 76% 31% 69% 34% 66% 85% 1% 99% 4% 96% 3% 97% 7% 93% 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 Jun 24 Variable Cumulative proportion of expiry Fixed vs variable composition of book Fixed rate issuance composition 24% 0% 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to 6 mths to Dec 24 Jun 25 Dec 25 Jun 26 Dec 26 Jun 27 Dec 27 Jun 28 Dec 28 Fixed rate HL expiry 15% 10% Fixed 28% 27% 23% 21% 16% 10% 77% 72% 73% 77% 79% 84% 90% Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 20% 23% 80% Dec-20 Variable Fixed 29 Continued high credit quality 30+ days S&P arrears data 90+ days S&P arrears data MyState SPIN Majors SPIN Regionals 2.40% 2.40% 2.00% 2.00% 1.60% 1.60% 1.20% 1.20% 0.80% 0.97% MyState SPIN Majors SPIN Regionals 0.80% 0.40% 0.40% 0.00% 0.00% 0.44% ● Maintaining quality lending growth underpins our balance sheet strength ● Our focus is on low-risk, owner occupied lending with a LVR of less than 80%; portfolio LVR 55.7% at 30 June 2024 ● Arrears remain below industry average 30 Prudent loan provisioning Total collective provisions and GRCL ($m) 9.3 8.3 6.8 1.6 1.6 0.9 2.3 2.4 2.4 3.6 4.3 5.3 Jun 22 Dec 22 Jun 23 Collective Provision Collective credit provisions ($m) 10.1 10.3 1.6 1.9 2.4 2.4 6.1 Dec 23 Jun 24 2.4 1.8 1.5 1.1 1.5 2.0 1.7 3.0 3.0 3.0 3.3 Dec 22 Jun 23 Dec 23 Jun 24 Jun 22 Stage 1 Stage 2 Stage 3 ● Increase in total collective provisions consistent with higher arrears ● Forward looking overlay has increased to $1.9m (represents 24% of total collective provision) 0.11% 0.12% 0.13% Jun 22 Dec 22 Jun 23 Dec 23 % of Gross Loans 0.16% 0.43% 0.41% 0.37% 0.32% 2.9 4.5 Forward overlay 0.10% 0.28% 2.7 0.9 6.0 Total provision coverage ratio % of Credit RWA 7.9 6.9 5.9 2.1 GRCL Total 7.7 Jun 24 ● Very low loss history ● 5 mortgagees in possession ($1.9m) at 30 June 2024 ● Continue to work closely with any customers experiencing financial hardship 31 Forward looking economic overlay assumptions Assumptions June 25 June 26 Base Case 4.00% 4.50% Strong Recovery 3.50% 4.00% Moderate Recession 5.00% 5.50% Unemployment (year ended) Cash Rate (year ended) ● Forward looking overlay has increased from $1.6m at 30 June 2023 to $1.9m at 30 June 2024, with recent macroeconomic data reinforcing the probability of ‘higher for longer’ inflation and the deferral of the interest rate cutting cycle to mid-2025 ● At 30 June 2024, the key assumptions used to determine the overlay incorporate the latest observed economic data including: ✔ reduction in household savings ratio ✔ growth below trend and increasing unemployment ✔ stabilisation of housing market in the face of supply/demand imbalance, noting recovery remains uncertain in the medium term Base Case 4.35% 3.85% Strong Recovery 4.85% 4.85% Moderate Recession 2.85% 2.60% ● The assessment of the overlay used a scenario weighting of 50% base case, 40% moderate recession and 10% strong recovery. Base Case 0.0% -5.0% Scenario weightings Strong Recovery 5.0% 10.0% Moderate Recession -15.0% -20.0% House Prices (yoy movement) June 2023 10% 50% 40% June 2024 10% 50% 40% Strong recovery Base case Moderate recession 32 Additional merger information 5 33 Reconciling the different treatment of broker commissions MyState Auswide MergeCo 1 Net Interest Income ($m) 2 124.5 59.7 184.2 Operating Expenses ($m) 101.0 54.3 155.4 NIM (%) 2 1.45% 1.19% 1.36% CTI (%) 66.3% 76.6% 69.6% Net Interest Income ($m) 151.2 71.3 222.5 Operating Expenses ($m) 2 127.7 66.0 193.7 NIM (%) 1.75% 1.42% 1.63% CTI (%) 2 71.3% 79.9% 74.0% Key financials on MyState’s reporting basis Key financials on Auswide’s reporting basis 3,4 Note: 1. Excluding impacts of synergies, integration costs and merger accounting adjustments. 2. Includes broker commissions and issuance costs. 3. Based on unaudited FY24 financials. 4. Does not include Selfco. 34 Key merger terms • Implementation of the Scheme is subject to a number of conditions including without limitation the following: • Regulatory approvals (including Treasurer, APRA, ASIC, ASX, ACCC if required) as well as shareholder and court approvals; • Independent Expert concluding that the merger is in the best interest of Auswide shareholders; • No prescribed events, no material adverse effects or material enforcement actions; • Representations and warranties must be accurate; • No claims, disputes, or litigation over $2 million; and • Confirmed Class Ruling from the ATO • Post implementation of the Proposed Merger, the MergeCo Board will compromise four non-executive directors from the MyState Board and three non-executive directors from the Auswide Bank Board Brett Morgan to be the Managing Director and Chief Executive Officer of MergeCo, Sandra Birkensleigh to be the Chair of MergeCo and Chair of the Bank subsidiary and Warren Lee to be the Chair of TPT Wealth From the date of this document up to and including the Implementation Date, both MyState and Auswide must conduct their businesses in the ordinary course and in substantially the same manner as previously conducted Without limiting the generality of clause Auswide and MyState must: i. comply with all laws and regulations applicable to them; ii. comply with all Regulatory Approvals necessary to conduct the business as conducted in the 12 months prior to the date of this agre