AAP Finance

Finance group MyState FY profit slips 1.5%

By AAP Newswire

Finance group MyState Limited's full-year profit has slipped 1.5 per cent to $31 million following a challenging first half affected by increased wholesale funding costs.

Revenue for the 12 months to June 30 fell 0.1 per cent to $89.4 million despite the $1.2 million sale of its retail financial planning business.

Chief executive Melos Sulicich said the challenging start to its full-year earnings turned around by the second half, thanks to above system lending growth, ongoing disciplined cost management and lower funding costs.

Investors responded favourably to the results announcement on Friday, lifting MyState's share price 3.06 per cent to $4.72 at 1530 AEST.

"We said at the half-year that we would deliver a full-year net profit of around $30 million, which is what we delivered on an underlying basis," Mr Sulicich said.

The Tasmania-based company has increased its loans 10.7 per cent to more than $5 billion, at a lending growth of nearly $500 million.

Over the year, MyState invested in an online banking platform, partly adding to its rise in income ratio from 62.7 per cent to 64.8 per cent.

Mr Sulicich anticipates a slower credit growth environment and increasing competition for high-quality owner-occupier lending.

The company declared a fully franked final dividend of 14.5 cents, unchanged from the previous year.

MYSTATE'S FY19 RESULTS

* Profit down 1.5pct to $31m

* Revenue down 0.1pct to $89.4m

* Dividend unchanged at 14.5 cents per share, fully franked.