Company Reports

MyState is a small listed Australian bank, commanding a tiny 0.55% of the mortgage market. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

MyState's fiscal 2026 profit increased 41% to AUD 58 million, supported by the Auswide Bank merger. Net interest margin improved to 1.5% on 7% loan growth. A final fully franked dividend of AUD 12.5 cents per share brings the total for the year to AUD 24.5 cps. Shares rose 8% on the result.

MyState is a small listed Australian bank, commanding a tiny 0.55% of the mortgage market. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

Based on APRA data, MyState is enjoying strong home and business loan growth so far in 2026. In the four months to April 30, home loans are up 3.6%, and business loans are up about 20%, compared with system growth of 2% and 3%, respectively.

MyState's first-half fiscal 2026 underlying net profit after tax increased 18% to AUD 28 million, boosted by the merger with Auswide Bank. The loan book and net interest margin lifted modestly, with operating costs adjusted for the acquisition held flat.

MyState is a small listed Australian bank, commanding a tiny 0.55% of the mortgage market. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

One step toward achieving up to AUD 25 million in pretax cost savings was MyState handing back the Auswide banking license to the Australian Prudential Regulation Authority. The Auswide brand and product offering aren't affected; its assets and liabilities were simply transferred to MyState.

MyState is a small listed Australian bank, commanding a tiny 0.55% of the mortgage market. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

MyState is a small listed Australian bank, commanding a tiny 0.55% of the mortgage market. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

MyState's fiscal 2025 profit increased 17% to AUD 41.3 million, boosted by the merger with Auswide Bank in February. A modest uplift in net interest margins and low loan losses are highlights. The final fully franked dividend of AUD 0.11 is up 5% from the first half.

Bank share prices performed well in the three months to June 30, 2025. Credit growth has continued to trend higher, while credit stress has been low. Australian banks reported flat to modestly softer net interest margins in the March quarter.

Australian nonmajor banks were not immune to the market selloff following President Donald Trump's tariffs, with a potential hit to gross domestic product growth clouding the earnings outlook. In fiscal 2025, credit growth is ticking up on population and wages growth, and credit stress has been low.

Franking for Australian banks we cover was showing as not available on our research reports between Jan. 23 and March 13, 2025, due to a recent change in our process for extracting data from our valuation models. This has been corrected.

MyState is a small listed Australian bank, commanding a tiny 0.45% of the mortgage market. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

MyState's first-half fiscal 2025 profit was flat at AUD 17.5 million, supported by a release of loan impairment provisions. Profit before loan impairments fell 6%, with operating expenses growing much faster than revenue. This excludes costs for the Auswide Bank merger, which is effective today.

The federal treasurer approved the merger between MyState and Auswide Bank on Jan. 24, 2025. The final key hurdle is Auswide shareholder approval. Combined, the Tasmania- and Queensland-based retail banks will have a still-small 0.45% share of Australian home loans.

MyState is a small listed Australian bank, commanding a tiny 0.45% of the mortgage market assuming the merger with Auswide Bank completes in early 2025. A key point of difference, though, is MyState’s large exposure to housing, and in particular, owner-occupied and low loan/value ratio loans. Housing loans make up most of MyState’s total loan book, in comparison to roughly 65% (on average) for the major banks. This contributes to the bank’s sound credit quality, with extremely low arrears and bad debts. Because of its size, MyState struggles to generate comparable margins to the majors, as it has a much smaller customer base and higher funding and operating costs.

Credit growth is ticking up on population and wages growth, and households and businesses appear more optimistic about the economic outlook as rate hikes appear less likely.

Australian bank share prices have performed strongly in the last 12 months, with the eight banks we cover up over 50% on average. But do current share prices reflect the fundamentals?

On average, major bank share prices are up 33% in the 12 months to September 2024. Repricing loans and deposits to protect margins, and low loan losses, are positives. But the share price rally outstripped the improvement in underlying fundamentals.