MYS AGM Chairman and CEO Addresses

• Balancing growth and return in a challenging environment
• Proposed merger with Auswide Bank to deliver 50% growth and cost synergies
• Solid capital position and stable dividend despite tough conditions

MyState Ltd Chairman Vaughn Richtor and CEO Brett Morgan delivered addresses at the company's 2024 Annual General Meeting, highlighting the challenges faced in FY24 but also the company's strategic initiatives and future outlook. In a competitive lending environment, MyState grew its mortgage portfolio while adhering to prudent risk management, with arrears remaining low. The company's statutory net profit after tax (NPAT) declined 8.3% to $35.3 million, driven by a compression in net interest margin due to intense competition. However, MyState achieved a 1.6% reduction in operating expenses and maintained a stable dividend payout ratio of 72%. The company's total capital ratio increased to 16.4%, providing flexibility for future growth. A key focus was the proposed merger of equals with Auswide Bank, which is expected to deliver 50% growth overnight and cost synergies of $20-25 million per annum. The merged group will have a stronger balance sheet, greater revenue diversification, and enhanced scale for cost efficiency and customer reach. The merger is subject to regulatory and shareholder approvals and is targeted to be completed by late 2024. Looking ahead, MyState remains committed to profitably growing its business across deposits, lending, wealth, and trustee services, with a continued focus on simplifying operations and driving efficiencies.

The proposed merger with Auswide Bank is forecast to be earnings dilutive in FY25 due to transaction and integration costs, but is expected to be double-digit earnings per share accretive in 2026, with full run-rate cost synergies achieved by FY27.

MyState remains committed to profitably growing its business across customer deposits, home lending, income funds and trustee services, with a continued focus on simplifying products, processes and systems, risk management and driving efficiencies. The proposed merger with Auswide Bank is a significant step towards executing the company's profitable growth strategy.