Cuscal and brokers lift MyState

The label 'profitless growth' can be a cliche but, in the case of Tasmania's MyState Financial, it's a fair descriptor of the ADI's most recent financial year.

Loan growth flourished over the year to June 2015, expanding the lending book by 16 per cent to A$3.6 billion.

Profit, however, went next to nowhere, with the bank's version of an underlying net profit advancing only 0.3 per cent to $29.7 million.

The net profit increased ten per cent to $32.5 million, with a gain on sale of Cuscal shares making up most of the difference. The return on equity was 11 per cent on this profit and ten per cent on the underlying profit.

Loan settlements in 2015 were $1 billion, up 75 per cent on the year before.

Melos Sulicich, the CEO, landed the job at MyState a year ago to bring experience working with mortgage brokers as a prop to a high growth strategy.

MyState sacrificed 15 basis points on its net interest margin, which fell to 2.43 per cent. It broke out "origination costs", one measure of fees paid to brokers, which lifted to 15 bps from 11 bps in 2014 and nine in 2013.