Profit down, satisfaction up for second-tier bank

by Madison Utley25 Feb 2019

A Tasmania-based financial group announced that its net profit dropped to $14.4m in the first half of the financial year, from $15.8m in the prior corresponding period.

MyState Limited attributes the drop in profit to higher funding costs in part, but also largely to its investments in the range of services that will be offered in the future. Their leading aim has been to expand the group’s digital banking capabilities.

MD and CEO Melos Sulicich said, “Our digital platform enables us to offer highly competitive and innovative products, with growth in online accounts contributing to an increase in customer deposits of 10.6% to $3.4bn. We are pleased that our continued investment in improving customer services has been recognised in the group’s net promoter score, which places MyState among the leading financial services firms in terms of customer satisfaction.

“Our strategy of digitising services is benefiting customers and we now offer a complete digital product suite, having recently introduced online origination for home loans, online deposit products and new payment technologies.”

In the same statement, MyState pointedly highlighted the crucial role of brokers in sustaining a well-functioning mortgage market in Australia. The financial group reconfirmed their commitment to supporting the mortgage broking industry in the midst of the ongoing royal commission developments and reiterated its firm support of healthy industry competition.

Sulicich concluded, “We will continue our disciplined cost management as we move beyond a period of significant investment and are confident of the underlying robustness of our business. We have a clear strategy of organic growth supported by strategic investment in innovative products that help customers to bank the way they want.

“As part of our strategy, we are investing in our wealth management business by developing contemporary products, restructuring funds and administration to benefit investors with a future focus on national distribution.”