MyState Bank is reaping the rewards of its merger with Auswide Bank, with the Tasmanian-based bank reporting significant improvements across key business metrics 12 months after the deal.
The bank has consolidated operations under a single banking licence and is moving toward unified systems and branding as it builds scale to compete with the major banks.
“One year on from our transformational merger we are seeing the benefits of increased scale and operating efficiencies,” chief executive Brett Morgan said.
MyState’s equipment finance arm Selfco delivered standout results, growing its lending book by 64% and now contributing more than 6% to group profit.
The bank also recorded strong momentum in home loans, with record mortgage applications in the second quarter.
“There is strong momentum building in retail mortgages with record home loan applications in Q2,” Morgan said.
Credit quality improved as interest rates fell, with home lending arrears dropping to 0.28% by December – well below industry averages.
“Our home lending arrears improved over the half as the cash rate moved lower,” he sai”Customers were also more willing to ask for help rather than fall into arrears.”
The bank is consolidating its technology infrastructure with plans for a new core banking system and loan origination platform under the single MyState brand.
“We now have a single banking license and are moving to a consolidated core banking system, a new loan origination system and a single banking brand,” Morgan said.
He said the unified approach aims to strengthen MyState’s position as an alternative to the big four banks in regional markets.
“Having one bank name means one story, one voice, and greater clarity for customers across Australia,” he said.
“Regional banks are the drivers of competition in the Australian banking market.”
