Tasmanian group MyState Bank has signalled its wealth management business will be set to expand its distribution to the mainland in the coming 12 months, after it recorded a 1.3 per cent rise in revenue.
Overall, the bank’s net profit had stayed flat, increasing by 1 per cent to $30.1 million for financial year 2020. The board resolved to scrap the final dividend, in favour of maintaining MyState’s capital during the economic uncertainty – but it expects to resume payouts to shareholders in the first half of FY21.
As shareholders missed their dividend, the bank had also responded to COVID-19 through pay cuts for its leadership – the board’s directors had seen a six-month 20 per cent reduction in fees while executives had elected not to take any short-term incentives for the full year or pay rises.
Revenue for the group’s wealth business, now named TPT Wealth, was up by 1.3 per cent to $15.5 million, despite the coronavirus crisis hit to funds under management (FUM) which was down by 10 per cent year-on-year to $1 billion.
Operating income for investment services rose slightly to $10.7 million, up from $10.6 million the year before, while trustee services increased its income by 5 per cent.
TPT Wealth had moved from being a traditional trustee business towards an asset management model during financial year 2019.
It had seen “substantial restructuring”, with fund administration and accounting being outsourced and a new digital platform being launched for investors. Two equity funds had been closed.
Managing director and chief executive Melos Sulicich said the results have shown MyState’s investments in modernising the bank and wealth management business have been well received by consumers.
“TPT Wealth has also been brought into the digital age with the asset management platform transformed,” Ms Sulicich said.
“We are ready to compete for market share, grow our mortgage book and secure a greater number of deposit customers across Australia. TPT Wealth is also well placed to win market share in eastern states and grow its business.”
He added there had been a rise in customers using digital banking services during the lockdowns. The bank closed six branches in the first half.
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].
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