MyState’s profit has elevated by 5.4 per cent for the half year, with the company anticipating the launch of its new funds platform will propel its growth further.
The group posted a net profit after tax of $15.1 million for the six months leading up to December, up from $14.3 million in the prior year.
Banking contributed $13.1 million to its profit, up by 9.1 per cent from the year before, while the wealth contribution, reflecting its sold business, was 13.6 per cent lower, at $1.9 million.
Total operating income for the group was up by 6.7 per cent to $63.3 million.
Earnings per share had increased by 4.4 per cent to 16.6 cents, with the board declaring an interim dividend of 14.25 cents per share.
Managing director and chief executive officer Melos Sulicich said the bank had build a highly competitive position with its digitisation strategy and solid customer growth.
He called the launch of MyState’s new managed funds platform a highlight, as the first step in transitioning the wealth segment into a digital funds management business.
“MyState has driven transformation through implementing digital systems and structuring our business to serve customers more transactions now performed online or on a mobile device,” Mr Sulicich said.
“The benefits of process re-engineering and increased use of process automation, including robotics, are beginning to flow, enabling us to serve greater numbers of customers and transactions while reducing average cost. Income growth has outpaced expenses with the cost-to-income ratio improving 116 basis points to 64.9 per cent.”
The remaining wealth management segment, with the retail financial planning business in Tasmania sold off to Fiducian, has now rebranded as TPT Wealth, saw its revenue increase by 5.1 per cent year-on-year to $8.2 million.
Funds under management ended the half at $1.19 billion, up 1.3 per cent on the previous half.
Mr Sulicich added TPT Wealth will provide the business an opportunity for growth outside of its base in Tasmania.
“Rebranding our Wealth Management operations as TPT Wealth was a significant step supporting our plans for national growth, facilitated by the launch of our new investor portal enabling investors to manage their investments online,” Mr Sulicich said.
“Transition of the funds management business to a new digital funds and registry portal is progressing smoothly with plans to strengthen the new platform’s sales and marketing capability, targeting Australia’s eastern seaboard.
“Our new administration system and customer portal provide the first planks in accessing substantial new markets for the business.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].