MyState still awaits growth from Tasmanian Perpetual

Tasmania's financial services group, MyState, is yet to see any earnings growth from Tasmanian Perpetual Trust, the business it acquired in 2009.

MyState yesterday reported a net profit of $22 million for the year to June - up 27 per cent on the previous corresponding period. The previous year's result included profits from Tasmanian Perpetual Trust for 10 months, following its merger with MyState.

Earnings per share rose 18.9 per cent and return on equity was up from 8.7 per cent to 10.7 per cent. The group's cost-to-income ratio fell from 73.95 per cent to 70.05 per cent.

MyState Financial, the group's banking arm, contributed $19.9 million of net profits, while Tasmanian Perpetual contributed $1.6 million. All the growth in group earnings came from MyState Financial.

MyState's managing director, John Gilbert, said the group had completed a successful integration of TPT and had all the forecast synergies.

He said the lack of earnings growth in TPT's earnings was due to its exposure to the depressed wealth management sector and had nothing to do with the business model.

The MyState home lending portfolio grew by 10.5 per cent, compared with system growth of seven per cent, over the year to June. The retail deposit book grew by 7.9 per cent - also ahead of system.

MyState achieved this growth while maintaining a strong net interest margin of 3.2 per cent.

The bad and doubtful debt charge rose from $3.6 million to $3.9 million. Loan arrears (payments past due 30 days or more) were below one per cent.

Trustee company revenue rose 7.2 per cent to $15.8 million.

MyState's chief executive, John Gilbert, said there was some evidence of cross-sell between the group's banking and trustee divisions. There was a 26.6 per cent increase in new and revised wills written by the trustee company, largely as a result of referrals within the group.