In its full year results, a non-bank announced that its loan book has surpassed the $5bn mark.
Over the 2019 financial year, MyState Bank recorded lending growth of close to $500m, up 10.7%.
The bank plans to continue focusing its loan book growth on low risk, owner-occupied lending with an LVR ratio of less than 80%.
In its results, MyState linked this target demographic to the fact its arrears were well below both peer and major bank benchmark indices, with 90 days arrears at a historical low of 0.26%.
“While we anticipate a slower credit growth environment, with increasing competition for high quality owner occupied lending, we will maintain our disciplined focused strategy to build scale, control costs, carefully manage risk and leverage off our technology platform,” said MyState MD and CEO Melos Sulicich.
Citing the “heightened regulatory oversight” following the royal commission, the group intends to continue investing in risk management processes, systems and people skills.
Further, while MyState confirmed it remains an “advocate of the mortgage broker model,” it emphasised that greater transparency of ownership is needed to allow customers to make fully informed decisions.
The overarching group, MyState Limited, recorded a net profit after tax of $31.0m, down $0.5m from 2018, even with the post tax contribution of $1.2m from the sale of its retail financial planning business in June 2019.
Sulicich attributed some of the challenges faced earlier in the year to elevated wholesale funding costs, but noted the above system lending growth and lower funding costs in the second half which helped to stabilise the group’s standing.
“It is particularly pleasing to note that as part of our ongoing focus on meeting and exceeding customer expectations, MyState’s Net Promoter Score (NPS) improved from +27 to +42 during the year, amongst the leading scores in the banking industry,” he added.
Looking ahead, the bank plans to continue ramping up its digital services after having made a full online banking proposition available to its customers this year.
There is also a back office automation program in the works, intended to change the bank’s operating model and cost profile.
