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September 2013Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
ASX Code: MYS
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2MyState Limited Investor Presentation
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors many of which are outside the control of MyState Limited (MYS), which may cause the results or actual performance to be materially different from the future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of presentation.
No presentation or warranty is or will be made by any legal or natural persons in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the information or any part of it. The information includes information derived from third party sources that has not been independently verified.
To the full extent permitted by law, MYS disclaims any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions.
Nothing contained in the information constitutes investment, legal, tax or other advice. You should make your own assessment and take independent professional advice in relation to the information and any action on the basis of the information.
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3MyState Limited Investor Presentation
A strong result in a challenging business environment
Good cost management
Achieved further integration benefits for both MyState Financial and The Rock
Transitioning to a more sales-focused model for The Rock
Excellent risk management and strong credit quality
Efficient platform for further growth
Highlights
30
25
20
15
10
5
0
NPAT
17.3
22.0
28.5
2010
Millions $
20122011 2013
23.4*
* 23.4 reported + 2.1 merger costs
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4MyState Limited Investor Presentation
FY2013 FY2012 Change (%)
Revenue ($m) 248.1 241.1 2.8
Normalised net profit after tax* ($m) 28.5 25.5* 11.8
The Rock acquisition costs ($m) – 2.1 N/A
Statutory net profit after tax ($m) 28.5 23.4 21.7
FY2013 FY2012 Change (%)
Earnings per share (cents) 32.7 29.9 9.3
Final dividend – fully franked (cents) 14.0 14.0 –
Total dividends for the year – fully franked (cents)
28.0 28.0 –
FY2013 FY2012 Change (%)
Cost-to-income ratio (%) 68.3 70.3* 2.8
Net interest margin – MyState Financial (%)
– The Rock (%)
2.78
1.78
2.99
1.86
7.0
4.0
Return on equity (%) 10.2 9.3 9.7
* FY2012 figures after adding back The Rock acquisition costs.
FY2013 results
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5MyState Limited Investor Presentation
Balance sheet, capital strength and asset quality
FY2013 FY2012 Change (%)
Total assets ($m) 3,629.7 3,658.6 (0.8)
Total liabilities ($m) 3,350.0 3,384.7 (1.0)
Net assets ($m) 279.7 273.9 2.2
Risk-weighted assets ($m) 1,322.0 1,285.5 2.8
Capital adequacy (%) 14.0 14.1 0.7
Funds under management ($m) 952.0 931.0 2.2
Funds under advice ($m) 733.0 698.0 5.0
Loans 30+ days in arrears (%) 0.5 0.9 40.0
Banking asset growth flat due to lower broker channel broker originations
Strong capital adequacy (Tier 1 – 13.7%)
Modest growth for FUM and FUA
Credit quality of loan book amongst industry best with low arrears
Ratings – MyState Financial BBB (stable) – The Rock BBB- (positive watch)
Basel III ready
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6MyState Limited Investor Presentation
Earnings summary
Earnings Waterfall
NIM
Fee Inco
me
Comm
issio
ns
Personnel C
osts
Mark
eting C
osts
Governance
Costs
Technolo
gy Costs
Occupancy
Costs
Admin
istra
tion C
osts
Net Bad &
Doubtfu
lsTax
2013 NPAT
2012 NPAT
25.5
28.5
6.0 0.8 0.1
0.7 0.6 0.4
0.1 0.3
1.1
2.2 1.1
$15.00
$17.00
$19.00
$21.00
$23.00
$25.00
$27.00
$29.00
$31.00
$33.00
Mil
lio
ns
2013 first full year of The Rock
NIM impacted by margin pressures and lower broker origination
Investment in branch refurbishment, Head Office consolidation and technology, delivering efficiencies and growth platform
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7MyState Limited Investor Presentation
Net interest margin
NIM 2012 Full Year 2013 1st Half 2013 2nd Half 2013 Full Year
MyState Financial (%) 2.99 2.80 2.77 2.78
The Rock (%) 1.86 1.79 1.76 1.78
Slight deterioration in net interest margin across the Group
MyState Financial reduction a result of lag in repricing fixed deposit book, mitigated somewhat by moving away from higher priced retail funding to cheaper wholesale funding
The Rock margin impacted by delibrate strategy to lift retail funding mix. Other impact was rolloff of low margin RMBS issued pre-GFC
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8MyState Limited Investor Presentation
Cost-to-income ratio
Group
80.0%
75.0%
70.0%
65.0%
60.0%2010 2011 2012 2013
Cost-to-income ratio continues to improve
Rock integration and Tasmanian cost reduction program working with branch consolidation and 10% staff reductions
Absolute cost reduction through last three half years demonstrating integration benefits and efficiency drives
Expect zero operating cost inflation for 2014 yearFor
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9MyState Limited Investor Presentation
Operating expenses
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2010 2011 2012 2013
2.52.9
3.6 3.5
Marketing costs $m
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2010 2011 2012 2013
32.9 32.8
38.4 38.5
Personnel costs $m
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2010 2011 2012 2013
3.44.1
5.2
7.3
Occupancy costs $m
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2010 2011 2012 2013
5.9 6.3
8.49.5
Technology costs $m
Technology cost increased following continued investment in improving systems, infrastructure and communications across the Group
Occupancy costs impacted by investment in revamping branches and consolidation of Tasmanian Head Office sites
People costs reduced through centralisation of back office document processing and corporate functions
Marketing and community engagement programs prioritised to support only key business activities and sales channels
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10MyState Limited Investor Presentation
Asset mix and funding profile
2013 – MyState Financial
Overdrafts 5.0%
Housing Loans 88.3%
Overdrafts 5.0%
Personal Loans 4.0%
Commercial Loans 2.7%
Home Loans 100%
2013 – The Rock
Home Loans 100%
2013 – MyState Financial
TDs 48.2%TDs 48.2%
At Call Accounts 30.9%
CMT Notes 6.5%
2007-1 5.8%
NCDs 5.5%
2010-2 3.0%
2013 – The Rock
At Call Accounts 41.5%
TDs 38.3%
NCDs 14.6%
RBS 2007-1 3.4%
CMT 2.2%
Low risk balance sheet
• Quality home loan portfolio represents 92% of receivables
• Dominant retail funding with increased retail base at The Rock
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11MyState Limited Investor Presentation
$477.8M
16.8%
$2.3M
0.1%
$69.6M
2.5%$21.1M
0.7%
$252.7M
8.9%
$144.1M
5.1%
$1,873.0M
65.9%
Loan distribution by state
The Rock acquisition diversifies portfolio
Broker channel origination adds further diversification and increases focus on nationally diversified portfolio
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12MyState Limited Investor Presentation
Arrears 30 day+ arrears %MyState Financial mortgage loan arrears by units
The Rock mortgage loan arrears by units
0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
S & P Spin MyState Financial arrears ROK
0
10
20
30
40
50
60
70
80
90
90+ days
100
30
50
70
90
Apr ‘12Feb ‘12 Jun ‘12 Aug ‘12 Oct ‘12 Dec ‘12 Feb ‘13 Apr ‘13 Jun ‘13
Apr ‘12Feb ‘12 Jun ‘12 Aug ‘12 Oct ‘12 Dec ‘12 Feb ‘13 Apr ‘13 Jun ‘13 Apr ‘12Feb ‘12 Jun ‘12 Aug ‘12 Oct ‘12 Dec ‘12 Feb ‘13 Apr ‘13 Jun ‘13
60+ days 30+ days
90+ days 60+ days 30+ days
Asset quality: 30+ day arrears
The RockMyState Financial
1.8%
1.6%
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%Dec ‘11 Mar ‘12 Jun ‘12 Sep ‘12
S&P Mortgage Performance Index
Dec ‘12 Mar ‘13 Jun ‘13
Integration of The Rock into MyState Financial operations management
Efficient and early engagement with problem loans
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13MyState Limited Investor Presentation
Bad and doubtful debts
Specific loan
Write offs (RHS)
Overdrafts
Unsecured lending
Provisioning and write offs
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0
0.5
1.0
1.5
2.0
2.5
3.0
Apr ‘12Feb ‘12 Jun ‘12 Aug ‘12 Oct ‘12 Dec ‘12 Feb ‘13 Apr ‘13 Jun ‘13
Wri
te o
ffs
Pro
visi
on
ing
Mill
ions
Mill
ions
FY 2010 FY 2011 FY 2012 2013
Bad debts recovered ($m) (0.3) (0.8) (1.1) (1.5)
Bad debts written off ($m) 3.5 4.6 4.8 4.1
Increase (decrease) in provisioning ($m)
0.2 (0.6) (1.4) (0.9)
Net charge to P&L ($m) 3.3 3.2 2.3 1.6
Tighter credit managment continues to drive provisions lower
Debt recoveries have benefited from earlier direct action on problem loansF
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14MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
MyState Financial provides retail and business banking, agribusiness and insurance services to 120,000 customers in Tasmania.
“ “
HOBART AND SURROUNDS
BURNIE
DEvONPORT
LAUNCESTONKINGS MEADOwS
HOBART
GLENORCHYNEw TOwN
NEw NORFOLK
ROSNY
KINGSTON
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15MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Tasmania: economic environment
FY2013:
Poorest performing State economy
Minority government to face election in March 2014
Private and public demand declined through FY2013
Consumer sentiment weak
Dwelling approvals low
FY2014
Interest rate sensitive sectors (e.g. housing) lagging mainland lead, but some early signs positive
Confidence lifting as commercial building works to commence/ramp up
• Hospital ($364m), Parliament Square development ($100m), MONA ($20m), Toll freight terminal ($24m), Midlands Irrigation ($100m), University of Tasmania (UTAS)
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16MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
MyState Financial – performance summary
NPAT $22.3m, up by 8.5% on previous corresponding period reflecting:
• 4.1% increase in loan portfolio to $2.1bn
• Further fall in non-performing assets
Low 30-day+ secured loan arrears demonstrate high credit quality
Net interest margin 2.78% (FY2012: 2.99%)
Level 1 capital adequacy of 13.46%
High quality liquid assets (HQLA) of 15.6%
Average loan to value ratio (LvR) of 67.2%
Branch refurbishment and consolidation program progressed
0.0
5.0
10.0
15.0
20.0
25.0$ millions
2010 2011 2012 2013
3.3
15.7
19.920.6
22.3
Tasmanian Banking – MSF
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17MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
MyState Financial: high customer satisfaction 43%
17%
37%
30%
8%8%
32%Extremely Satisfied
Average
Very Satisfied
Satisfied
Neither
Dissatisfied (B3B)
21%
1%3%
41%
17%
32%
4%7%
35%
7%
37%
12%
9%
33%
14%
33%
11%
8%
24%
13%
35%
7%
19%
Source: Independent quantitative brand research conducted by specialist brand research firm Millward Brown – August 2012
Enjoys the highest level of customer satisfaction in this category at 96%
75% of customers are either extremely satisfied or satisfied
Second most considered brand in the State
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18MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
New core banking platform on track
Build phase completed
Testing well underway including implementation of customer-focused system modifications
Project completion on track for November 2013 – extended slightly from October to allow for further testing of customised functions
Capital expenditure of project remains on budget
Project is on track to achieve synergies post go-live in the form of:
• Reduced ongoing software maintenance costs
• Reduce data centre hosting costs
• Increased productivity
Implementation represents a low risk and low cost conversion relative to many other core banking conversionsF
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19MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
The Rock provides retail banking and insurance services to 40,000 customers in Queensland and around Australia.
“ “
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GooMerIFor
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20MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Central Queensland: economic environment
Strong population and employment growth
Favourable demographics
Diverse mix of industries to sustain growth, alongside mature, well-established businesses
Global demand for local commodities – particularly LNG – underpinning export potential
Pipeline of major projects continues to stimulate further growth
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21MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
The Rock performance summary
NPAT of $2.9m (pcp – 7 months only: $3.3m)
Contributed $1.6m to group overheads (pcp: nil)
Loan portfolio reduced by 9.7% to $0.9m due to less activity through broker channel – initiatives taken to reverse this decline
Increase of 32% in direct loan sales
Funding structure changing with more retail deposits and less wholesale/channel-introduced funds
Cost efficiencies through centralising functions in group head office
Net interest margin 1.78% (pcp – 7 months: 1.86%)
Capital adequacy of 13.43%
High quality liquid assets (HQLA) of 14.3%
Average loan to value ratio (LvR) of 68.5%
Significant increase in general insurance sales
New products and services introduced including new card products
Branch and refurbishment consolidation program progessed0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2010 2011
$ millions
2012 2013
3.3
2.9
Central Queensland Banking – The Rock
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22MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Tasmanian Perpetual Trustees is a major provider of estate planning, wealth management, investment and trustee services in Tasmania
“ “
HOBART AND SURROUNDS
BURNIE
DEvONPORT
LAUNCESTONKINGS MEADOwS
HOBART
GLENORCHY
ROSNY
KINGSTON
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23MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Tasmanian Perpetual Trustees – performance summary
NPAT of $3.1m, up 108.4% from previous corresponding period
• Cost reductions through integration of business units and centralisation of back office systems
• Higher commission income from estates under advice
Improved inflow to FUM and FUA
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2010 2011 2012 2013
1.71.6 1.5
3.1
Trustee and Wealth Business – TPT
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24MyState Limited Investor Presentation
Company Profile
MyState Financial is a retail financial services ADI, regulated by the Australian Prudential Regulation Authority (APRA), operating predominately in Tasmania. MyState Financial was established on 1 July 2007 and is the result of a number of credit union consolidations; the most recent being the merger of islandstate and connectfinancial. MyState Financial, which demutualised in August 2009, provides financial services to approximately 120,000 customers and holds an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The MyState Financial Group also includes:
• MyState Financial Foundation Limited, which provides annual grants to charities to educate and nurture the young people of Tasmania; and
• Connect Asset Management Pty Ltd, which manages four securitisation programmes under the name of ConQuest: ConQuest Mortgage Trust, ConQuest 2007-1 Trust; ConQuest 2010-1 Trust and ConQuest 2010-2 Trust.
MyState Limited (MYS), a non-operating holding Company, is a diversified financial services group listed
on the ASX and provides a broad range of financial services through three wholly-owned subsidiaries,
MyState Financial (MSF) and The Rock Building Society Limited (The Rock) authorised deposit-taking
institution’s (ADI), and Tasmanian Perpetual Trustees (TPT) a trustee and wealth management company.
Headquartered in Tasmania, its diverse business operations cover:
Banking Services Trustee Services Wealth Management
Transactional and internet banking Estate planning Financial planning
Insurance and other alliances Estate and trust administration Managed fund investments
Savings and investments Power of attorney Portfolio administration services
Business banking Corporate and custodial trustee Portfolio advisory services
Agribusiness Private client services
Personal and business lending
The Rock Building Society Limited is a retail financial services ADI, regulated by APRA, operating predominately in Queensland. The Rock became a wholly owned subsidiary of the Company following a successful acquisition by MyState Limited on 1 December 2011. The Rock provides financial services to approximately 40,000 customers. The Rock holds an AFSL issued by ASIC.
The Rock also owns and operates the Rockhampton Custodial and Management Company Limited, a securitisation trust management and custodial company.
Tasmanian Perpetual Trustees was established in 1887 and is a major Tasmanian based provider of financial products and trustee services. Tasmanian Perpetual Trustees is a trustee company authorised under the Tasmanian Trustee Companies Act 1953 and the Corporations Act.
Tasmanian Perpetual Trustees holds an AFSL issued by ASIC.
Tasmanian Perpetual Trustees has over $930 million in funds under management on behalf of personal, business and wholesale investors in Tasmania. Tasmanian Perpetual Trustees also has a further $700 million of assets under advice, through the Company’s role as financial adviser, attorney or trustee on behalf of various trusts, estates and other clients.
02 COMPANY PROFILE
Tasmanian Perpetual Trustees – funds under management and advice
Total FUM up 2.2% to $952m
Good fund flow into strongly performing income funds and into growth funds
Investors moving away from cash
Some flow coming via new ‘platform’ distribution
Funds under advice up 5% to $733m
Fee-for-service model with salaried planners, compliant with FoFA procedures
80% of fees recurring through service packages
Referrals from retail and estate channels
Opportunity to offer increasing range of products to existing group clients
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
900,000,000
30/06/10 30/06/11 30/06/12 30/06/13
Cash Funds
Income Funds
Growth Funds
TPT - FUM
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25MyState Limited Investor Presentation
MyState Limited – group strategy
Maintain and grow strong presence in Tasmania:
• Banking, wealth management and asset management
Capitalise on The Rock growth opportunities including:
• Enhanced product, service and channel offerings
• wealth offering
Continued focus on enabling technologies – core platform; loan origination; accounting system
Opportunities for further mergers with like-minded ADIs
Participation in industry rationalisation in trustee and wealth management sector
Ongoing focus on cost containment
Retain strong balance sheet quality and capacity for both organic and inorganic growth opportunitiesF
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26MyState Limited Investor Presentation
Outlook FY2014 will be another challenging year for the banking and wealth management industries
Signals from Australian businesses and the Reserve Bank’s interest rate reductions over the past two years infer lack of confidence in the economy’s growth
Despite this challenging environment, the Group’s diversified businesses – MyState, The Rock and Tasmanian Perpetual Trustees – should continue to grow their assets and profitability in FY2014
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