MyState Financial marked time in the year to June, with negligible growth in its loan portfolio and only lower funding costs and a reduction in its bad debt charge giving some respectability to the result.The group's net profit rose 3.9 per cent to A$29.6 million in 2013/14. The return on equity was 10.5 per cent.The banking businesses, MyState Financial and The Rock Building Society, contributed $25 million of that amount, down from $25.2 million in the previous corresponding period.The net interest margin was 2.43 per cent - up a little from 2.4 per cent in 2012/13.MyState chief executive, Melos Sulicich, said in a media release that the improvement in the margin was the result of the group being able to use funds raised in a residential mortgage-backed securities issue last November to repay more expensive funding.Net interest income contracted because of lower portfolio balances, falling 1.3 per cent to $84.4 million. Softer loan activity and a greater mix of broker originated loans have hit banking fee and commission income, with fewer cross-sell opportunities. Non-interest income was down 5.4 per cent to $34.8 million.The bad debt charge fell from $1.6 million to $852,000.Sulicich said sales momentum picked up towards the end of the year. The value of the group's loan portfolio fell 1.3 per cent in the December half but was 0.4 per cent for the year overall.