Full Year 2026 MyState Ltd Earnings Call

August 25, 2026

Speaker #1: And good morning, everyone, and thanks for joining us for our full-year 2026 results briefing. I'm Brett Morgan, my state's managing director and CEO, and with me is Gary Dixon, our CFO.

Speaker #1: Today we launched our FY26 financial results with the ASX, and these are also available on our website. I will begin with an overview of the annual result and the key execution highlights, before Gary takes you through the financials in more detail.

Speaker #1: I will then return to summarize our priorities, before we open the call for questions. Moving to slide 4, FY26 was an important year for my state.

Speaker #1: It was our first full-year operating as a merged group, and I'm pleased to report that the merger thesis is translating into results. We delivered strong earnings growth, improved operating leverage, meaningful synergy realization, and a diversified earnings profile, while maintaining a strong capital position and increasing dividends.

Speaker #1: Underlying NPAT increased 41% to 58.3 million, underlying earnings per share increased approximately 12%, and we delivered 11.8 million of run-rate synergies and remain on track to achieve our FY28 synergy target.

Speaker #1: Our high return businesses—self-car and TPT wealth—are making an increasingly important contribution to group earnings, and demonstrate the benefit of a more diversified portfolio. We've made excellent progress with the integration of our two retail banks this year, and importantly, execution risk continues to reduce.

Speaker #1: During the year we transitioned to a single banking license, made all major strategic integration decisions, and have clear line of sight to the next phase of value creation through further integration milestones.

Speaker #1: My state remains well capitalized, giving us flexibility to invest and grow into the future. With this context in mind, the board declared a fully frank final dividend of 12.5 cents per share.

Speaker #1: This has resulted in a full-year dividend of 24.5 cents per share, 3 cents per share higher than FY25. Slide 5 provides a snapshot of some of our key metrics.

Speaker #1: Pleasingly, retail banking momentum increased in the second half, and our total loan book and customer deposits increased by 7% from 4% respectively for the full year.

Speaker #1: A good result, and what is a highly competitive market. The investment in our high return businesses has delivered an improved earning mix, with Self-Co and TPT contributing over 11% of the group's underlying NPAT.

Speaker #1: Turning to slide 6, these results reflect the team's strong execution capability. We delivered growth across our key business lines, continued to diversify and improve our earnings mix, and further strengthened the strategic position of the group.

Speaker #1: Following the move to a single banking license, momentum significantly improved. Our home loan portfolio increasing by nearly 6% to 13.6 billion. Our deposit book grew by 4% on the prior year to 10.6 billion.

Speaker #1: Customer deposits made up 70% of our total funding. Self-Co, our higher margin equipment finance business, continued to grow strongly, with the loan book up 134%.

Speaker #1: The business contributed 3.9 million of the group's underlying NPAT. Our TPT wealth business also continued to build on recent positive momentum. Trustee services funds under administration increased nearly 18% to 560 million.

Speaker #1: Reflecting the success of our investment in a new trust business line. Overall, TPT's operating income increased nearly 11% to 16.4 million, driven by improved trustee services business performance.

Speaker #1: Turning to slide 7, and as previously mentioned, integration continues to progress well. Since the merger, the team have completed 158 integration initiatives, which has delivered 11.8 million in run-rate synergies.

Speaker #1: A major milestone was achieved in December 25, when the group transitioned to a single banking license. Delivering immediate capital revenue and efficiency benefits. All key integration decisions have now been made.

Brett Morgan: Diversified portfolio. We have made excellent progress with the integration of our two retail banks this year, and importantly, execution risk continues to reduce. During the year, we transitioned to a single banking license, made all major strategic integration decisions, and have clear line of sight to the next phase of value creation through further integration milestones. MyState remains well capitalized, giving us flexibility to invest and grow into the future. With this context in mind, the board declared a fully frank final dividend of AUD 0.125 per share. This has resulted in a full-year dividend of AUD 0.245 per share, AUD 0.03 per share higher than FY25. Slide 5 provides a snapshot of some of our key metrics. Pleasingly, retail banking momentum increased in the H2, and our total loan book and customer deposits increased by 7% and 4% respectively for the full year.

Brett Morgan: Diversified portfolio. We have made excellent progress with the integration of our two retail banks this year, and importantly, execution risk continues to reduce. During the year, we transitioned to a single banking license, made all major strategic integration decisions, and have clear line of sight to the next phase of value creation through further integration milestones. MyState remains well capitalized, giving us flexibility to invest and grow into the future. With this context in mind, the board declared a fully frank final dividend of AUD 0.125 per share. This has resulted in a full-year dividend of AUD 0.245 per share, AUD 0.03 per share higher than FY 2025. Slide five provides a snapshot of some of our key metrics. Pleasingly, retail banking momentum increased in the H2, and our total loan book and customer deposits increased by 7% and 4% respectively for the full year.

Speaker #1: Remaining integration initiatives are tracking the plan, including a single loan origination system, a single core banking platform, a single retail banking brand, and operating model optimization.

Speaker #1: We remain on track to deliver our target run-rate synergies of 20 to 25 million by the end of FY28. I will now hand over to Gary who will take us through the financial results in more detail.

Speaker #2: Thanks, Brett. And good morning, everyone. Slide 9 contains a summary of this year's financial performance. For comparison purposes, FY25 includes a contribution from Oswide and Self-Co for approximately 4.5 months, following the merger in February 2025.

MyState remains well capitalised, giving us flexibility to invest and grow for the future.

With this context in mind, the Board declared a fully franked final dividend of 12.5 cents per share.

This has resulted in a full-year dividend of 24 and a half cents per share, 3 cents per share higher than FY25.

Speaker #2: Our key financial metrics, including operating income, core earnings, and underlying NPAT, were all well above last year's results, driven by the addition of Oswide and Self-Co for a full year, growth in the home loan and equipment finance portfolios, an uplift in net interest margin of 3 basis points, and realized synergies of 10.7 million.

Slide 5 provides a snapshot of some of our key metrics.

Brett Morgan: A good result in what is a highly competitive market. The investment in our high return businesses has delivered an improved earnings mix, with Selfco and TPT contributing over 11% of the group's underlying NPAT. Turning to slide 6. These results reflect the team's strong execution capability. We delivered growth across our key business lines, continued to diversify and improve our earnings mix, and further strengthened the strategic position of the group. Following the move to a single banking license, momentum significantly improved, with our home loan portfolio increasing by nearly 6% to AUD 13.6 billion. Our deposit book grew by 4% on the prior year to AUD 10.6 billion. Customer deposits made up 70% of our total funding. Selfco, our higher margin equipment finance business, continued to grow strongly with the loan book up 134%. The business contributed AUD 3.9 million of the group's underlying NPAT.

Brett Morgan: A good result in what is a highly competitive market. The investment in our high return businesses has delivered an improved earnings mix, with Selfco and TPT contributing over 11% of the group's underlying NPAT. Turning to slide six. These results reflect the team's strong execution capability. We delivered growth across our key business lines, continued to diversify and improve our earnings mix, and further strengthened the strategic position of the group. Following the move to a single banking license, momentum significantly improved, with our home loan portfolio increasing by nearly 6% to AUD 13.6 billion. Our deposit book grew by 4% on the prior year to AUD 10.6 billion. Customer deposits made up 70% of our total funding. Selfco, our higher margin equipment finance business, continued to grow strongly with the loan book up 134%. The business contributed AUD 3.9 million of the group's underlying NPAT.

Pleasingly, retail banking momentum increased in the second half, and our total loan book and customer deposits increased by 7% and 4%, respectively, for the full year.

A good result, and what is a highly competitive market.

Speaker #2: On a pro forma basis, underlying NPAT was up 22% on the prior year. The increase in total operating expenses reflects the addition of Oswide and Self-Co for a full year.

The investment in our higher return businesses has delivered an improved earnings mix, with selfco and TPT contributing over 11% of the group's underlying impact.

Turning the slide 6.

These results reflect the time and strong execution capability.

We delivered growth across our key business lines.

Speaker #2: Costs continue to be well managed, with operating expenses up only 0.8% on FY25 on a pro forma basis, with merger-related synergies largely offsetting inflation-based cost growth, our investment in higher returning businesses, and broader capability across the group.

Continue to diversify and improve our earnings mix, and further strengthen the strategic position of the group.

Following the move or signing of single banking licenses, momentum significantly improved, with our home loan portfolio increasing by nearly 6% to $13.6 billion.

Speaker #2: The group's cost-to-income ratio improved by 156 basis points. Underlying return on equity improved 80 basis points to 9.7%. Turning to slide 10, underlying NPAT of 58.3 million was up 41% on the prior period, driven by higher net interest and other banking income partly offset by increased operating expenditure due to the larger merged group cost base.

Our deposit will provide to the prior year $10.6 billion.

Customer deposits made up 70% of our total funding.

Health Code, our higher margin equipment finance business, continued to grow strongly with the loan book up 134%.

Brett Morgan: Our TPT Wealth business also continued to build on recent positive momentum. Trustee services funds under administration increased nearly 18% to AUD 560 million, reflecting the success of our investment in the new trust business line. Overall, TPT's operating income increased nearly 11% to AUD 16.4 million, driven by improved trustee services business performance. Turning to slide 7, and as previously mentioned, integration continues to progress well. Since the merger, the team have completed 158 integration initiatives, which has delivered AUD 11.8 million in run rate synergies. A major milestone was achieved in December 2025, when the group transitioned to a single banking license, delivering immediate capital, revenue, and efficiency benefits. All key integration decisions have now been made. Remaining integration initiatives are tracking to plan, including a single loan origination system, a single core banking platform, a single retail banking brand, and operating model optimization.

Brett Morgan: Our TPT Wealth business also continued to build on recent positive momentum. Trustee services funds under administration increased nearly 18% to AUD 560 million, reflecting the success of our investment in the new trust business line. Overall, TPT's operating income increased nearly 11% to AUD 16.4 million, driven by improved trustee services business performance. Turning to slide seven, and as previously mentioned, integration continues to progress well. Since the merger, the team have completed 158 integration initiatives, which has delivered AUD 11.8 million in run rate synergies. A major milestone was achieved in December 2025, when the group transitioned to a single banking license, delivering immediate capital, revenue, and efficiency benefits. All key integration decisions have now been made. Remaining integration initiatives are tracking to plan, including a single loan origination system, a single core banking platform, a single retail banking brand, and operating model optimization.

The business contributed $3.9 million of the group's underlying impact.

Speaker #2: Underlying NPAT excludes merger-related integration costs and fair value adjustments totaling 2.1 million, which are all included in the statutory NPAT result of 56.2 million.

Our TPT Wealth business also continued to build on recent positive momentum. Trustee services funds under administration increased nearly 18% to $560 million, reflecting the success of our investment in the new trust business line.

Overall, TPT's operating income increased nearly 11% to $16.4 million, driven by improved trustee services and business performance.

Speaker #2: Net interest income increased 37% due to a larger average balance sheet while other banking income rose 58% on higher lending, transaction, and commission fees, and a gain on sale of investments recognized in the first half.

In slide 7, and as previously mentioned, integration continues to progress well.

Since the merger, the team has completed 158 integration initiatives, which has delivered $11.8 million in run-rate synergies.

Speaker #2: Wealth management income rose 11% due to higher trustee services income and loan establishment fees associated with the commercial lending portfolios. Self-Co, our equipment finance business, continues to scale, and contributed almost 7% of the group's underlying NPAT for the year.

A major milestone was achieved in December 2025, when the group transitioned to a single banking license, delivering immediate capital, revenue, and efficiency benefits.

All key integration decisions have now been made.

Speaker #2: Slide 11 provides a more granular breakdown of drivers of the change in net interest margin. NIM improved by 3 basis points over the year to 1.5% and improved 8 basis points in the second half relative to the first half.

Brett Morgan: We remain on track to deliver our target run rate synergies of AUD 20 to 25 million by the end of FY28. I will now hand over to Gary, who will take us through the financial results in more detail.

The remaining integration initiative is tracking. The plan includes a single loan origination system, a single core banking platform, a single retail banking brand, and operating model optimization.

We remain on track to deliver our target run-rate synergies of $20 to $25 million by the end of FY28.

Gary Dickson: Thanks, Brett, and good morning, everyone. Slide 9 contains a summary of this year's financial performance. For comparison purposes, FY25 includes a contribution from Auswide and Selfco for approximately 4 and a half months following the merger in February 2025. Our key financial metrics, including operating income, core earnings, and underlying NPAT, were all well above last year's result, driven by the addition of Auswide and Selfco for a full year, growth in the home loan and equipment finance portfolios, an uplift in net interest margin of 3 basis points, and realized synergies of AUD 10.7 million. On a pro forma basis, underlying NPAT was up 22% on the prior year. The increase in total operating expenses reflects the addition of Auswide and Selfco for a full year.

Gary Dickson: Thanks, Brett, and good morning, everyone. Slide 9 contains a summary of this year's financial performance. For comparison purposes, FY 2025 includes a contribution from Auswide and Selfco for approximately 4 and a half months following the merger in February 2025. Our key financial metrics, including operating income, core earnings, and underlying NPAT, were all well above last year's result, driven by the addition of Auswide and Selfco for a full year, growth in the home loan and equipment finance portfolios, an uplift in net interest margin of 3 basis points, and realized synergies of AUD 10.7 million. On a pro forma basis, underlying NPAT was up 22% on the prior year. The increase in total operating expenses reflects the addition of Auswide and Selfco for a full year.

I'll now hand over to Gary, who will take us through the financial results in more detail.

Thanks, Brad, and good morning, everyone.

Speaker #2: The uplift in the second half reflects the growing contribution from Self-Co, a supportive cash rate profile, and the liquidity and funding benefits following the move to a single banking license in December 25.

Speaker #2: We expect retail banking competition to remain robust. For my state, future retail margin pressure will be partly mitigated by an increasing contribution from Self-Co, noting also that excellent NIM in the month of June of 1.58% was higher than average NIM for the second half, primarily reflecting the benefit of increases to the cash rate in February/March/May 26.

Slide 9 contains a summary of this year's financial performance for comparison purposes. FY2 includes the contribution from Ozwide and Self Code for approximately four and a half months, following the merger in February 2025.

Okay, financial metrics including operating income, core earnings, and underlying impacts were all well above last year's results, driven by the addition of Ozwide and South Cove for a full year. Growth in the home loan and equipment finance portfolios, an uplift in net interest margin of 3 basis points, and realized synergies of $10.7 million all contributed.

Speaker #2: Slide 12 provides a breakdown of operating costs for the year. The increase in expenses, including people and technology costs, primarily reflects the inclusion of Oswide and Self-Co in the group for the full period.

On a pro forma basis, underlying impact was up 22% on the prior year.

Gary Dickson: Costs continue to be well managed, with operating expenses up only 0.8% on FY25 on a pro forma basis, with merger-related synergies largely offsetting inflation-based cost growth, our investment in higher returning businesses, and broader capability across the group. The group's cost to income ratio improved by 156 basis points. Underlying return on equity improved 80 basis points to 9.7%. Turning to slide 10, underlying NPAT of AUD 58.3 million was up 41% on the prior period, driven by higher net interest and other banking income, partly offset by increased operating expenditure due to the larger merged group cost base. Underlying NPAT excludes merger related integration costs and fair value adjustments totaling AUD 2.1 million, which are all included in the statutory NPAT result of AUD 56.2 million.

Gary Dickson: Costs continue to be well managed, with operating expenses up only 0.8% on FY 2025 on a pro forma basis, with merger-related synergies largely offsetting inflation-based cost growth, our investment in higher returning businesses, and broader capability across the group. The group's cost to income ratio improved by 156 basis points. Underlying return on equity improved 80 basis points to 9.7%. Turning to slide 10, underlying NPAT of AUD 58.3 million was up 41% on the prior period, driven by higher net interest and other banking income, partly offset by increased operating expenditure due to the larger merged group cost base. Underlying NPAT excludes merger related integration costs and fair value adjustments totaling AUD 2.1 million, which are all included in the statutory NPAT result of AUD 56.2 million.

The increase in total operating expenses reflects the addition of Ozwide and Self Code for a full year.

Speaker #2: On a pro forma basis, underlying expense growth over the past four halves has been relatively flat. Growth year on year was 0.8%, with 10.7 million of realized merger-related synergies largely offsetting underlying inflation-based cost growth and the investment in our higher returning businesses and capability across the group.

Costs continue to be well managed, with operating expenses up only 0.8% on FY25, on a pro-forma basis, with merger-related synergies largely offsetting inflation-based cost growth. Our investment in higher-returning businesses and broader capability across the group,

The group's cost-to-income ratio improved by 156 basis points.

Speaker #2: Slide 13 provides a summary of the anticipated ranges and timing of synergies, and the expected cost of integration on an annual basis through to FY28.

To 9.7%.

Speaker #2: For the outer years, these represent our current. Best estimates, and the actual timing may differ. The integration program and the resulting realization of synergies are proceeding as expected.

Turning to slide 10, underlying NPAT of $58.3 million was up 41% on the prior period, driven by higher net interest and other banking income, partly offset by increased operating expenditure due to the larger merged group cost base.

Speaker #2: As we've previously disclosed, the merger is expected to yield annual pre-tax cost synergies of 20 to 25 million on a full run-rate basis by the end of FY28.

Gary Dickson: Net interest income increased 37% due to a larger average balance sheet, while other banking income rose 58% on higher lending, transaction, and commission fees, and a gain on sale of investments recognized in the H1. Wealth management income rose 11% due to higher trustee services income and loan establishment fees associated with the commercial lending portfolio. Selfco, our equipment finance business, continues to scale and contributed almost 7% of the group's underlying NPAT for the year. Slide 11 provides a more granular breakdown of drivers of the change in net interest margin. NIM improved by 3 basis points over the year to 1.5% and improved 8 basis points in the H2 relative to the H1.

Underlying impact excludes merger-related integration costs and fair value adjustments, totaling $2.1 million, which are all included in the statutory Empire result of $56.2 million.

Speaker #2: The total cost of integration for the period through to June 28 is now expected to be 32 million. The change from our previously disclosed estimate reflects the decision to implement a modern AI-enabled core banking platform in partnership with my state's long-term technology provider, TCS, and a smaller adjustment for hiring inflation across staff and vendor costs.

Net interest income increased 37% due to a larger average balance sheet, while other banking income rose 58% on higher lending, transaction and commission fees, and a gain on sale of investments recognized in the first half.

Wealth management income rose 11% due to higher trustee services income and loan establishment fees associated with the commercial lending portfolio.

Speaker #2: We believe this investment will strengthen the group's long-term competitive position, enhance our operating capabilities, and position us to deliver further productivity and growth over time.

SelfCo, our equipment finance business, continues to scale and contributed almost 7% of the group's underlying NPAT for the year.

Speaker #2: Given the move to a new core banking platform, a portion of the investment will now be capitalized reducing the impact of integration costs over the three years of the program.

Slide 11 provides a more granular breakdown of drivers of the change in net interest margin.

Speaker #2: The resulting capitalized spend will be depreciated over an assumed useful life of 10 years from the go-live date. Turning to slide 14, our home loan portfolio increased by 5.8% to 13.6 billion at 30 June.

Gary Dickson: The uplift in the H2 reflects the growing contribution from Selfco, a supportive cash rate profile, and the liquidity and funding benefits following the move to a single banking license in December 2025. We expect retail banking competition to remain robust. For MyState, future retail margin pressure will be partly mitigated by an increasing contribution from Selfco, noting also that exit NIM in the month of June of 1.58% was higher than average NIM for the H2, primarily reflecting the benefit of increases to the cash rate in February, March, and May 2026. Slide 12 provides a breakdown of operating costs for the year. The increase in expenses, including people and technology costs, primarily reflects the inclusion of Auswide and Selfco in the group for the full period. On a pro forma basis, underlying expense growth over the past four halves has been relatively flat.

NIM improved by 3 basis points over the year to 1.5% and improved 8 basis points in the second half relative to the first half.

The uplift in the second half reflects the growing contribution from Southco, a supportive cash rate profile, and the liquidity and funding benefits following the move to a single banking license in December '25.

Speaker #2: The group continued to focus on low-risk owner-occupied lending. Loans with an LVR of less than 80% make up 77% of the total book. High LVR lending is generally provided to borrowers eligible to participate in the Australian government's 5% deposit scheme, or is covered by lenders' mortgage insurance.

We expect retail banking competition to remain robust.

Speaker #2: Applications and settlements were both stronger in the second half, with home loan book growth of approximately 11% on an annualized basis. Following the federal government budget announcements in May, application volumes in June and July were down approximately 7% on the average for the year.

For MyState, future retail margin pressure will be partly mitigated by an increase in contribution from self-co. Noting also that exit NIM in the month of June of 1.58% was higher than average for the second half, primarily reflecting the benefit of increases to the cash rate in February, March, and May 26.

Slide 12 provides a breakdown of operating costs for the year.

The increase in expenses, including people and technology costs, primarily reflects the inclusion of Ozwide and Self Code in the group for the full period.

Gary Dickson: Growth year-on-year was 0.8%, with AUD 10.7 million of realized merger-related synergies largely offsetting underlying inflation-based cost growth and the investment in our higher returning businesses and capability across the group. Slide 13 provides a summary of the anticipated ranges and timing of synergies and the expected cost of integration on an annual basis through to FY28. For the outer years, these represent our current best estimates, and the actual timing may differ. The integration program and the resulting realization of synergies are proceeding as expected. As we have previously disclosed, the merger is expected to yield annual pre-tax cost synergies of AUD 20 to 25 million on a full run rate basis by the end of FY28. The total cost of integration for the period through to June 2028 is now expected to be AUD 32 million.

Speaker #2: The chart at the bottom left of this slide highlights that credit quality across the group remains resilient, with 90-day arrears at 32 basis points down 12 basis points from June 25, and well below the sector's average.

On a pro-forma basis, underlying expense growth over the past four halves has been relatively flat.

Speaker #2: Moving to slide 15, the chart on the bottom right highlights the customer deposit ratios remain stable at 70%. As we continue to gather deposits across our digital branch and partnership channels.

Growth year on year was 0.8% with 10.7 million of realized merger related. Synergies largely offsetting underlying inflation based cost growth and the investment in our higher returning, businesses and capability across the group.

Slide 13 provides a summary of the anticipated ranges and timing of synergies, and the expected cost of integration on an annual basis through to FY28.

Speaker #2: In December, we launched a new savings product, Hello Saver, to support deposit growth by providing customers with a competitive digitally offered savings account. Pleasingly, in the second half, this product gathered significant momentum and provided additional flexibility to run off more price-sensitive higher cost deposits.

For the outgoing years, these represent our current best estimates, and the actual timing may differ.

The integration program and the resulting realization of synergies are proceeding as expected.

Speaker #2: In April 26, my state issued its largest ever senior unsecured floating rate note for 250 million, which contributed to a lengthening of the tenor of our wholesale funding.

As we've previously disclosed, the merger is expected to yield annual pre-tax cost synergies of $20 million to $25 million on a full run-rate basis by the end of FY28.

Gary Dickson: The change from our previously disclosed estimate reflects the decision to implement a modern AI-enabled core banking platform in partnership with MyState's long-term technology provider, TCS, and a small adjustment for higher inflation across staff and vendor costs. We believe this investment will strengthen the group's long-term competitive position, enhance our operating capabilities, and position us to deliver further productivity and growth over time. Given the move to a new core banking platform, a portion of the investment will now be capitalized, reducing the impact of integration costs over the three years of the program. The resulting capitalized spend will be depreciated over an assumed useful life of 10 years from the go-live date. Turning to slide 14, our home loan portfolio increased by 5.8% to AUD 13.6 billion at 30 June.

The total cost of integration for the period through to June 28th is now expected to be $32 million.

Speaker #2: Securitization remains both an important source of funding and capital management tool, and my state will continue to be a programmatic issuer in this market.

Speaker #2: Turning to slide 16, the group remains well capitalized with strong organic capital generation. Pleasingly, the move to a single banking license in December improved our ability to optimize the deployment of capital and supported accelerated loan book growth.

The change from our previously disclosed estimate reflects the decision to implement a modern, AI-enabled core banking platform in partnership with MyState's long-term technology provider, TCS, and a small adjustment for hiring staff and vendor costs.

We believe this investment will strengthen the group's long-term competitive position, enhance our operating capabilities, and position us to deliver further productivity and growth over time.

Speaker #2: The total capital ratio was managed down to 15.8% following Tier 2 capital redemptions of 52 million during the year. My state's strong capital position provides the flexibility to continue to invest in key initiatives and grow our home loan and equipment finance books.

Given the move to a new core banking platform, a portion of the investment will now be capitalized, reducing the impact of integration costs over the three years of the program.

The resulting capitalized spend will be depreciated over an assumed useful life of 10 years from the go-live date.

Speaker #2: Turning to slide 17, TPT Wealth Operating Income increased 11% to 16.4 million driven by strong growth in trustee services revenue. Trustee services funds under administration grew by 18% to 560 million due to growth in our newer compensation trust business line.

Turning to slide 14, our home loan portfolio increased by 5.8% to $13.6 billion at 30 June.

Gary Dickson: The group continued to focus on low risk, owner-occupied lending. Loans with an LVR of less than 80% make up 77% of the total book. High LVR lending is generally provided to borrowers eligible to participate in the Australian government's 5% deposit scheme or is covered by lender's mortgage insurance. Applications and settlements were both stronger in the H2, with home loan book growth of approximately 11% on an annualized basis. Following the federal government budget announcements in May, application volumes in June and July were down approximately 7% on the average for the year. The chart at the bottom left of this slide highlights that credit quality across the group remains resilient, with 90-day arrears at 32 basis points, down 12 basis points from June 2025, and well below the sector's average. Moving to slide 15.

The group continued to focus on low-risk owner-occupied lending.

We are less than 80%—we make up 77% of the total book.

Speaker #2: Managed funds FUM and revenue were steady, and pleasingly, TPT's MPAT was up 12% on last year. Slide 18 provides a snapshot of our equipment finance business self-co.

High LVR lending is generally provided to borrowers eligible to participate in the Australian Government’s 5% deposit scheme, or is covered by lenders mortgage insurance.

Speaker #2: Self-co's target market is Australian small businesses seeking to purchase business-critical assets used to generate income. The portfolio is diversified across a range of asset categories, with an average loan size of approximately 80,000.

Applications and settlements were both stronger in the second half with the home loan book, showing growth of approximately 11% on an annualized basis.

Following the federal government budget announcements in May, application volumes in June and July were down approximately 7% on the average for the year.

Speaker #2: Self-co originates loans nationally via the broker channel supported by BDMs on the ground in key states. During the year, we prioritized investment in self-co to take advantage of its strength as a fast-growing higher margin business.

The chart at the bottom left of this slide highlights that credit quality across the group remains resilient, with 90-day arrears at 32 basis points, down 12 basis points from June 25th, as average.

Gary Dickson: The chart on the bottom right highlights the customer deposit ratio remains stable at 70%, as we continue to gather deposits across our digital, branch, and partnership channels. In December, we launched a new savings product, Hello Saver, to support deposit growth by providing customers with a competitive, digitally offered savings account. Pleasingly, in the H2, this product gathered significant momentum and provided additional flexibility to run off more price sensitive, higher cost deposits. In April 2026, MyState issued its largest ever senior unsecured floating rate note for AUD 250 million, which contributed to a lengthening of the tenor of our wholesale funding. Securitization remains both an important source of funding and capital management tool, and MyState will continue to be a programmatic issuer in this market. Turning to slide 16. The group remains well capitalized with strong organic capital generation.

Moving to slide 15.

Speaker #2: The loan book has grown 235% since the merger, and its revenue and cost profile continue to improve as the book grows. Overall credit quality remains sound, with credit loss provisioning in line with historical loss rates.

The chart on the bottom right highlights that the customer deposit ratio remains stable at 70%, as we continue to gather deposits across our digital branch and partnership channels.

Speaker #2: The business contributed 7% to the group's underlying MPAT in FY26, up from 0.6 million in the prior year. Finally, moving to slide 19, as Brett mentioned, the board has declared a fully-franked final dividend of 12.5 cents per share payable on the 22nd of September.

In December, we launched a new savings product, Hello Saver, to support deposit growth by providing customers with a competitive, digitally offered savings account.

Pleasingly, in the second half, this product gathered significant momentum and provided additional flexibility to run off more price-sensitive, higher-cost deposits.

Speaker #2: The full-year payout ratio was 71.5% of underlying MPAT and 74.1% of statutory MPAT, both close to the midpoint of the board's target range. The dividend reinvestment plan will be offered to shareholders at a discount of 1.5%.

In April 26, MyState issued its largest ever senior unsecured floating rate note for $250 million, which contributed to a lengthening of the tenor of our wholesale funding.

Securitization remains both an important source of funding and a capital management tool, and MyState will continue to be a programmatic issuer in this market.

Speaker #2: The growth in dividends over the past four halves reflects the benefits of increased scale, the contribution from higher returning businesses, and the realization of merger-related synergies.

Gary Dickson: Pleasingly, the move to a single banking license in December improved our ability to optimize the deployment of capital and supported accelerated loan book growth. The total capital ratio was managed down to 15.8% following Tier 2 capital redemptions of AUD 52 million during the year. MyState's strong capital position provides the flexibility to continue to invest in key initiatives and grow our home loan and equipment finance books. Turning to slide 17, TPT Wealth's operating income increased 11% to AUD 16.4 million, driven by strong growth in trustee services revenue. Trustee services funds under administration grew by 18% to AUD 560 million, due to growth in our newer compensation trust business line. Managed funds, FUM, and revenue were steady, and pleasingly, TPT's NPAT was up 12% on last year. Slide 18 provides a snapshot of our equipment finance business, Selfco.

Turning to slide 16, the group remains well capitalized, with strong organic capital generation.

Speaker #2: I'll now hand you back to Brett, who will summarize our key priorities as we look ahead.

Pleasingly, the move to a single banking license in December improved our ability to optimize the deployment of capital and supported accelerated loan book growth.

Speaker #3: Thanks, Gary. Looking ahead, our priorities remain unchanged, and I've centered on driving sustainable shareholder value. We will continue to execute our integration program and deliver the benefits of the merger.

The total capital ratio was managed down to 15.8% following Tier 2 capital redemption of $52 million during the year.

Speaker #3: While maintaining a disciplined focus on growth, efficiency, and capital management. We see further opportunities to grow our retail bank, scale our equipment finance business, and expand our funds and trustee services franchises.

MyState's strong capital position provides the flexibility to continue to invest in key initiatives and grow our home loan and Equipment Finance books.

Speaker #3: We will also assess and pursue inorganic opportunities, where they create value. We enter FY27 with clear priorities, good momentum, and a strong platform from which to deliver the next phase of value creation.

Turning to slide 17, TPT Wealth operating income increased 11% to $16.4 million, driven by strong growth in trustee services revenue.

Speaker #3: Turning to slide 22, and to close, my state's investment case remains clear. FY26 demonstrates the merger thesis is delivering. Earnings have grown, integration execution is on track, the earnings mix has improved, and the next phase of value creation is visible.

Trustee Services funds under administration grew by 18% to $560 million, due to growth in our newer compensation trust business line.

Managed funds and revenue were steady.

And pleasingly, TPT's impact was up 12% on last year.

Gary Dickson: Selfco's target market is Australian small businesses seeking to purchase business critical assets used to generate income. The portfolio is diversified across a range of asset categories, with an average loan size of approximately AUD 80,000. Selfco originates loans nationally via the broker channel, supported by BDMs on the ground in key states. During the year, we prioritized investment in Selfco to take advantage of its strength as a fast-growing, higher margin business. The loan book has grown 235% since the merger, and its revenue and cost profile continue to improve as the book grows. Overall, credit quality remains sound, with credit loss provisioning in line with historical loss rates. The business contributed 7% to the group's underlying NPAT in FY26, up from AUD 0.6 million in the prior year. Finally, moving to slide 19.

Slide 18 provides a snapshot of our Equipment Finance business, self code.

Speaker #3: We have a diversified source of earnings across retail banking, equipment finance, managed funds, and trustee services. We have delivered 11.8 million of run rate synergies with the FY28 target run rate unchanged.

Self-code target market is Australian small businesses seeking to purchase a business. Critical assets are used to generate income.

Speaker #3: Higher returning businesses now contribute around 11% of MPAT, and our capital position gives us flexibility to invest and grow. We have a track record of profitability and attractive fully-franked dividend yield, and a strong team focused on executing a clear strategy.

The portfolio is diversified across a range of asset categories, with an average loan size of approximately $80,000.

Self-care originates loans nationally via the broker channel, supported by BDMs on the ground in key states.

Speaker #3: That will deliver long-term value. Gary and I will now hand now answer any questions you may have. Over to you, Jamie, to moderate.

During the year, we prioritized investment in SelfCo to take advantage of its strength as a fast-growing, higher-margin business.

Speaker #1: Thank you. If you wish to ask a question, please press star and then 1 on your telephones. Wait for your name to be announced.

The loan book has grown 235% since the merger, and its revenue and cost profile continue to improve as the book grows.

Speaker #1: If you wish to cancel your request, you may press star and 2. If you are on a speakerphone, we do ask that you please pick up the handset prior to asking your question.

Overall credit quality remains sound, with credit loss provisioning in line with historical loss rates.

Speaker #1: Our first question today comes from Alistair Hunter from Ord Minute. Please go ahead with your question.

The business contributed 7% to the group's underlying NPAT in FY26, up from $0.6 million in the prior year.

Gary Dickson: As Brett mentioned, the board has declared a fully franked final dividend of 12.5 cents per share, payable on 22 September. The full year payout ratio was 71.5% of underlying NPAT and 74.1% of statutory NPAT, both close to the midpoint of the board's target range. The dividend reinvestment plan will be offered to shareholders at a discount of 1.5%. The growth in dividends over the past four halves reflects the benefits of increased scale, the contribution from higher returning businesses, and the realization of merger-related synergies. I'll now hand you back to Brett, who will summarize our key priorities as we look ahead.

Speaker #4: Thank you very much for the opportunity to ask the questions. Can I start with just on the new technology platform that you're putting in for the core system?

Finally, moving to slide 9 as Brett mentioned. The Board has declared a fully franked final dividend of 12.5 cents per share, payable on the 22nd of September.

Speaker #4: Can you give us a feel for when you're sort of expect the go-live date to be? And I presume the sort of synergies that one would expect from that consolidation of the two-to-one system are going to be outside the envelope that you've sort of provided for the 20 to 25 million.

The full-year payout ratio was 71.5% of underlying impact and 74.1% of statutory impact, both close to the midpoint of the board's target range.

The reinvestment plan will be offered to shareholders at a discount of 1.5%.

Speaker #4: So I'm just interested in what quantum of benefits we would expect once you do hit go-live with the common core new system.

The growth in dividends over the past four halves reflects the benefits of increased scale, the contribution from higher-returning businesses, and the realization of merger-related synergies.

Speaker #3: Thanks, Alistair, and good to chat. It's Brett. So we're targeting for the us to be operating on our new core banking platform before the end of FY28, as the current timeline.

Brett Morgan: Thanks, Gary. Looking ahead, our priorities remain unchanged and are centered on driving sustainable shareholder value. We will continue to execute our integration program and deliver the benefits of the merger, while maintaining a disciplined focus on growth, efficiency, and capital management. We see further opportunities to grow our retail bank, scale our equipment finance business, and expand our funds and trustee services franchises. We will also assess and pursue inorganic opportunities where they create value. We enter FY27 with clear priorities, good momentum, and a strong platform from which to deliver the next phase of value creation. Turning to slide 22, and to close, MyState's investment case remains clear. FY26 demonstrates that the merger thesis is delivering. Earnings have grown, integration execution is on track, the earnings mix has improved, and the next phase of value creation is visible.

I'll now hand you back to Brett, who will summarize our key priorities as we look ahead.

Speaker #3: So no change to when we think the integration will be completed. Then in terms of the benefits, you're right. We haven't considered additional benefits from moving to a more modern AI-enabled core banking platform as part of the synergies.

Thanks, Gary. Looking ahead, our priorities remain unchanged and are centered on driving sustainable shareholder value.

We will continue to execute our integration program and deliver the benefits of the merger, while maintaining a disciplined focus on growth, efficiency, and capital management.

Speaker #3: Those will be long into the future will be more productive business, able to serve our customers So we see that separate to the integration the delivery of the synergies through the integration.

You see further opportunities to grow our Retail Bank scale, our Equipment Finance business, and expand our Funds and Trustee Services franchises.

We will also assess and pursue inorganic opportunities, where they create value.

Speaker #3: So in terms of quantum, that just supports us to scale efficiently along into the future is how we see it.

We enter FY27 with clear priorities, good momentum, and a strong platform from which to deliver the next phase of value creation.

Speaker #4: So the original, out of the 20 to 25, you had 6 to 7 million of technology savings sort of identified. That is still your sort of expectation of the consolidation of two-to-one systems?

Talent Flight 22. And to close, MyState's investment case remains clear: FY26 Q3.

Earnings of grime.

Speaker #4: To get these longer-term yeah.

Brett Morgan: We have a diversified source of earnings across retail banking, equipment finance, managed funds, and trustee services. We have delivered AUD 11.8 million of run rate synergies with the FY28 target run rate unchanged. Higher returning businesses now contribute around 11% of NPAT, and our capital position gives us flexibility to invest and grow. We have a track record of profitability, an attractive fully franked dividend yield, and a strong team focused on executing a clear strategy that will deliver long-term value. Gary and I will now answer any questions you may have. Over to you, Jamie, to moderate.

Integration execution is on track, the earnings mix has improved, and the next phase of value creation is visible.

Speaker #3: Yeah, longer-term. Yeah.

Speaker #4: And if I can ask about self-core appetite, obviously it's been an exceptionally accretive acquisition as part of the Oswald deal. In terms of the current operating environment from a risk-return perspective, are you moderating sort of growth rate, or do you I think you identified a $40 billion market opportunity.

We have a diversified source of earnings across retail banking, equipment finance, managed funds, and trustee services.

We have delivered $11.8 million of run rate synergies towards the FY28 target. Run rate remains unchanged.

Higher-returning businesses now contribute around 11% of NPAT, and our capital position gives us flexibility to invest in growth.

Speaker #4: Are you still foot flat down in terms of pacing or pursuing profitable growth and self-core?

We have a track record of profitability, an attractive fully franked dividend yield, and a strong team focused on executing a clear strategy that will deliver long-term value.

Speaker #3: Yeah. So obviously, with the geopolitical challenges that exist in the market today, through the year, we took a deliberate decision to slow it down a little bit.

Gary and I will now hand over to Jamie Dorf to moderate and answer any questions you may have. Over to you, Jamie.

Operator: Thank you. If you wish to ask a question, please press star and then one on your telephones and wait for your name to be announced. If you wish to cancel your request, you may press star and two. If you are on a speakerphone, we do ask that you please pick up the handset prior to asking your question. Our first question today comes from Alastair Hunter from Ord Minnett. Please go ahead with your question.

Thank you.

Speaker #3: And particularly with the transfer logistics sectors, we put an additional controls for new customers, which meant we missed some business. But that's okay. We were comfortable taking a more conservative approach.

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If you are on speakerphone, we do ask that you please pick up the handset prior to asking your question.

Speaker #3: In terms of going forward and you can see the quality with 90-day arrears in the 20-something basis points. In terms of going forward, our appetite is to broadly grow at about the same absolute pace that we've been rate that we've been growing at today.

Our first question today comes from Alistair Hunter from Ord Minnett. Please go ahead with your question.

Alastair Hunter: Thank you very much for the opportunity to ask the questions. Can I start with just on the new technology platform that you are putting in for the core system. Can you give us a feel for when you expect the go live date to be? I presume the synergies that one would expect from that consolidation of the two to one system are going to be outside the envelope that you have provided for the AUD 20 to 25 million. I am just interested in what quantum of benefits we would expect once you do hit go live with the common core new system.

Speaker #3: As we bring it into our organization and embed it well and build the efficiencies in the processes out that we want, we think it's going to be a very good part of our business.

Thank you very much for the opportunity to ask the questions. Can I start with just one on the new technology platform that you're putting in for the core system? Can you give us a feel for when you sort of expect the go-live?

To be, and I presume, the sort of synergy.

Speaker #3: But we're conscious of growing at the at about the right about the same absolute rate that we've been growing at.

that one would expect from that consolidation of the 2-to-1 system,

Speaker #4: So just to clarify, absolute, you're talking dollar millions not percentages. Is that right? Yep.

Speaker #3: Correct. Correct. Yes.

Speaker #4: Yep. And then on provisioning, probably what Gary in terms of your slides sort of 30 in terms of your forward risk adjustments with overlay, you've increased your overlay.

Brett Morgan: Thanks, Alastair, and good to chat. It is Brett. We are targeting for us to be operating on our new core banking platform before the end of FY28, is the current timeline. So no change to when we think the integration will be completed. In terms of the benefits, you are right, we have not considered additional benefits from moving to a more modern AI-enabled core banking platform as part of the synergies. Those will be long into the future will be more productive business, able to serve our customers better, have a better platform for growth. So we see that separate to the integration, the delivery of the synergies through the integration. In terms of Quantum, that just supports us to scale efficiently along into the future, is how we see it.

Are you going to be outside the envelope that you've sort of provided for the $20 to $25 million? So, I'm just interested in what quantum of benefits we would expect once you do hit go-live with the Common Core new system.

Speaker #4: Then your mix of split between the sort of the buckets the change in your forward outlook seems to be an improvement in economic recovery rather than a decrease in the economy.

Thanks, Alistair, and good to chat. Um, it's Brett. So, um, we're targeting for us to be operating on our new core banking platform before the end of FY28, is the current timeline. So, no—no change to when we think the integration will be completed.

Speaker #4: So it seems a little bit conflicting. Conservative to put the money away. So I think that's good. But I'm not quite sure I understand bucket allocation that you've given.

Um, then in terms of the benefits, you're right, we haven't considered additional benefits from moving to a, you know, more modern AI-enabled core banking platform as part of the synergies. Those will be—

um,

Speaker #4: On slide 30.

Speaker #3: Yeah. So I suppose there's two things. So if you have a look at slide 29, you can see the forward overlay is a percentage of the sorry, the forward overlay is a total has increased by 1.7 million.

You know, longer term, the future will be more productive for the business. We'll be able to serve our customers better, have a better platform for growth. So we see that as separate to the integration—the delivery of the synergies through the integration.

Speaker #3: So from the 2 million to 3.7. And probably just highlight that as a percentage of the total collective provision, that's an increase from 70% to 26%.

Alastair Hunter: The original out of the 20 to 25, you had AUD 6 to 7 million of technology savings identified. That is still your expectation of the consolidation of two to one systems.

So, in terms of, um, Quantum Magic, it supports us to scale efficiently, along into the future, is how we see it.

Speaker #3: Then when we turn to slide 30, in terms of our assessment of the macro environment as we look forward, relative to June 25, one thing to call out is that our base case assumptions are more I'll call it pessimistic if you like, relative to what we had assumed in June 25.

Brett Morgan: Yeah, that is correct.

Alastair Hunter: Then you will get these longer term. Yep. Okay.

Alastair Hunter: Then you will get these longer term.

Gary Dickson: Yep. Okay.

Brett Morgan: Yeah, longer term. Yeah.

Alastair Hunter: And if I can ask about Selfco appetite, obviously that has been an exceptionally accretive acquisition as part of the Auswide deal. In terms of the current operating environment from a risk-return perspective, are you moderating sort of growth rate or do you I think you have identified a AUD 40 billion market opportunity. Are you still foot flat down in terms of pacing or pursuing profitable growth in Selfco?

So, the original—out of the $20 to $25 million, you had $6 to $7 million of technology savings, sort of a dent of $5 million. That is still your expectation with the consolidation from two to one systems, and then I get these longer term... Yeah. Yeah, longer term, um, yeah.

Speaker #3: And you can see there that whilst it looks like the waitings the probability of a moderate recession has decreased, it's all on it's all off a base case that assumes a more pessimistic outlook.

Pacing or pursuing a profitable growth and self-co.

Brett Morgan: Well, obviously, with the geopolitical challenges that exist in the market today, through the year, we took a deliberate decision to slow it down a little bit, and particularly the transport and logistics sectors. We put in additional controls for new customers, which meant we missed some business, but that is okay. We were comfortable taking a more conservative approach in terms of going forward. You can see the quality with 90-day arrears in the 20 something basis points. In terms of going forward, our appetite is to broadly grow at about the same absolute pace that we have been, rate that we have been growing it at to date. As we bring it into our organization and embed it well and build the efficiencies and the processes out that we want.

Speaker #3: So for example, you can see the base case assumptions for house prices, for example, minus 5 and then flat, I think from memory last year, we had that as either 0 and up 5 or 5 and 5.

Speaker #3: So we've certainly taken a more cautious approach in terms of the way we've thought about the overlay. And that's resulted in the increase that you're seeing.

Yeah, so we, um, you know, obviously with the geopolitical challenges that exist in the market today, through the year we took a deliberate decision to slow it down a little bit, particularly in the transport and logistics sectors. Um, we put in additional controls.

Speaker #4: Thank you. And then finally, just on volume margin sort of trade-off as we look forward, obviously very strong fourth-quarter margin and exit performance. You had very strong second-half volume growth and our expectation, as you're probably going to see, system housing growth trail back towards sort of 4% for the June 27 year.

For new customers, which meant we missed some business, but that's okay. We're all comfortable taking a more conservative approach in terms of going forward, and you can see the quality with 90-day is in the 20s.

Brett Morgan: We think it is going to be a very good part of our business, but we are conscious of growing it at about the same absolute rate that we have been growing it at.

Speaker #4: What's sort of your macro settings and where would you guide us in terms of the head and tailwinds around a full-year NIM for 27, please?

Alastair Hunter: Just to clarify, absolute, you are talking dollar millions, not percentages. Is that right?

In terms of go forward, you know, appetite is to broadly grow about the same absolute Pace that we've been great that we've been growing at today. Um, as we, um, you know, bring it into our organization and, and embed it well and, and build the efficiencies in the processes out that we want, um, we think it's going to be a, you know, a very good part of our business but we're conscious um, at growing it at the, you know, at about the right about the same absolute rate that we've been growing at.

Brett Morgan: Correct.

Speaker #3: Well, I might just firstly go to growth, Alastair. So sort of broadly, we would agree with your assessment of where system credit growth is going to go.

Alastair Hunter: Yep.

Brett Morgan: Yes.

Gary Dickson: Yes.

Alastair Hunter: Yep. Then on provisioning, probably one for Gary, in terms of your slide 30, in terms of your forward risk adjustment overlay, you have increased your overlay, then your mix of split between the buckets. The change in your forward outlook seems to be an improvement in economic recovery rather than a decrease in the economy. So it seems a little bit conflicting. Conservative to put the money away, so I think that is good. But I am not quite sure I understand the bucket allocation that you have given on slide 30.

Just to clarify—absolute what? You're talking dollar millions, not percentages. Is that right? Correct? Correct. Yep. Yep.

Speaker #3: Clearly, it's going to slow off the back of the announcements that we've seen towards the end of May or mid-May. So we're sort of broadly aligned around system growth to 4%.

They don't provision, probably one for Gary. Um, in terms of your slide, sort of 30, in terms of your forward risk adjustments with overlay, you've—

You've increased your overlay.

Speaker #3: And what we're endeavoring to do is to grow sort of around system maybe slightly quicker than system depending on how strong system growth is.

Then your mix of split between the sort of the buckets, the change in your forward outlook seems to be an improvement.

In.

Speaker #3: From a NIM perspective, we've sort of flagged that our exit NIM in the month of June was higher than average NIM for the second half.

Economic recovery rather than a decrease in the, um, the economy. So it seems a little bit conflicting or conservative to put the money away. So I think that's good, but I'm not quite sure I understand.

Gary Dickson: Yeah. So I would say there are two things. So if you have a look at slide 29, you can see the forward overlay as a percentage of the, sorry, the forward overlay as a total has increased by AUD 1.7 million, so from the AUD 2 million to AUD 3.7 million. And probably just highlight that as a percentage of the total collective provision, that is an increase from 17% to 26%. Then when we turn to slide 30, in terms of our assessment of the macro environment as we look forward, relative to June 2025, one thing to call out is that our base case assumptions are more, I will call it pessimistic, if you like, relative to what we had assumed in June 2025.

Speaker #3: And as I've sort of flagged certainly retail banking competition remains robust. So I mean, looking at that side of the business in isolation, we're certainly cautious from a NIM perspective.

Speaker #3: And making sure that we're managing that volume margin trade-off. So on the retail side, I think margin remains under pressure. One of the offsetting tailwinds that we will see is the increase in contribution from the self-core business.

Bucket allocation that you've given on slide 30. Uh yeah yeah. So I say the the 2 2 things. So if you have a look at slide 29, um, you can see the, the forward overlay is a percentage of the sorry. The forward overlay is a total has increased by 1.7 million. So from the 2 million to 3.7

And probably just highlights that, as a percentage of the total collective provision, that's an increase from 17% to 26%. Then, when we turn to slide 30, in terms of our assessment of—

Speaker #3: But overall, I think exit NIM in June has also sort of benefited from the full month effect of the increase in the official cash rate in May.

Speaker #3: So yeah, just I guess that's the other bit of important context.

The macro environment as we look forward, relative to June 25. Um, one thing to call out is that our base case assumptions are more—I'll call it 'peasant,' if you like—relative to what we had assumed in June 25.

Gary Dickson: And you can see there that whilst it looks like the weighting, the probability of a moderate recession has decreased, it is all off a base case that assumes a more pessimistic outlook. So for example, you can see the base case assumptions for house prices, for example, -5% and then flat. I think from memory last year, we had that as either 0% and up 5% or 5% and 5%. So we have certainly taken a more cautious approach in terms of the way we have thought about the overlay, and that has resulted in the increase that you are seeing.

Speaker #4: Thanks, Gary. I'll pause there and let someone else ask some questions. Thank you.

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Speaker #1: Again, that is star and then one to join the question queue. And gentlemen is showing no further questions at this time. I would we do have a follow-up from Alastair Hunter.

Speaker #1: Please go ahead with your follow-up. Alastair Hunter, your line is live. Please proceed with your follow-up.

Um, and you can see there that, whilst it looks like the, the weightings, um, the probability of a moderate recession has decreased, um, it's all on—it's all off of a base case that assumes a more pessimistic outlook. So, for example, um, you can see the base case assumptions for house prices, for example, you know, minus 5 and then flat. I think from memory last year we had that as either zero and up 5, or 5 and 5. So, we've certainly, um, we've certainly taken a more cautious approach in terms of the way we've thought about the overlay, and that's resulted in the increase that you're seeing.

Alastair Hunter: Thank you. Then finally, just on volume margin trade-off as we look forward. Obviously, very strong Q4 margin and exit performance. You had very strong H2 volume growth. Our expectation is you are probably going to see system housing growth trail back towards 4% for the June 2027 year. What are your macro settings and where would you guide us in terms of the head and tailwinds around a full year NIM for 2027, please?

Speaker #4: Thanks. So continue asking questions if no one else is wishing to ask questions and keep the bots happy. In terms of competitive conditions on the deposit side, just interested in how you've seen your newer initiatives on the more online savings accounts and the competitive dynamics addition of some Macquarie's been very competitive there.

Thank you. And and then finally just on um volume margins, sort of trade-offs with as we look forward. Um, obviously very strong, fourth quarter margin and exit performance. You had very strong, second half, volume growth, and our our expectation, as you're probably going to see system housing growth, you know, Trail back towards sort of 4% for the for the June 27th year. What what's sort?

Speaker #4: Revolut coming in and targeting. What I suppose dynamics you expect to see in terms of competition on the margin of what is one of the higher growth lines or channels of deposits at the moment, please?

Gary Dickson: Well, I might just firstly go to growth, Alastair. Broadly, we would agree with your assessment of where system credit growth is going to go. Clearly, it is going to slow off the back of the announcements that we have seen towards the end of May or mid-May. We are broadly aligned around system growth of 4%, and what we are endeavoring to do is to grow around system, maybe slightly quicker than system, depending on how strong system growth is. From a NIM perspective, the flag that our exit NIM in the month of June was higher than our average NIM for the H2. As I flagged, certainly retail banking competition remains robust.

Of your macro settings. And where would you guide us in terms of the hidden tailwind around a full year, namely for '27, please?

Speaker #3: Yeah. Thanks, Alastair. We expect on the basis that credit slows a little bit, we expect competition for deposits to become a bit touch softer as well given the demand for money to be a bit less.

Speaker #3: But we're pretty excited by the momentum we've got in our Hello Save, the digital part of the business. We've also got partnership channels and our branch network.

Speaker #3: So we've got a nice amount of distribution, which supports our deposit gathering. So from a competition perspective, we see if the competition on lending strengthens a little bit, we expect the competition on deposits to loosen a little bit given the demand for money over there.

Second half.

Gary Dickson: Looking at that side of the business in isolation, we are certainly cautious from a NIM perspective and making sure that we are managing that volume margin trade-off. On the retail side, I think margin remains under pressure. One of the offsetting tailwinds that we will see is the increase in contribution from the Selfco business. Overall, I think, exit NIM in June has also benefited from the full month effect of the increase in the official cash rate in May. I guess that is the other bit of important context.

Um, you know, and as I've sort of flagged, certainly retail banking competition remains robust.

Speaker #3: So overall, I guess I'm pointing to what Gary talked about around NIM, that yeah, we expect to continue, but I'm comfortable that we can continue to grow, particularly our high retaining businesses to support profitable growth in the future.

Speaker #4: Thank you. And then just continue on the funding mix side, appetite for securitization and also interested in terms of the cause-wide businesses elders relationship, that sort of started slowly in deposits as to whether you've started to see some momentum in that intermediary channel with deposit flows, please.

So I mean, looking at that side of the business in isolation, you know, we're certainly, um, cautious from a Nim perspective and making sure that we're managing that volume margin trade-off. So, on the retail side, I think margin remains Under Pressure, um, you know, 1 of the, the offsetting, uh, Tailwind that we will see is the increase in contribution from the self-care business.

But overall, I think, you know, exiting in June has also sort of benefited from the full-month effect of the increase in the official cash rate in May.

Um, so yeah. Just um

Speaker #3: Yeah. So I guess as we flag on slide 15, Alastair, certainly securitization remains that important funding source for us. And as you know, we also use it as a capital management tool.

uh,

I guess that's the other bit of important context.

Alastair Hunter: Thanks, Gary. I will pause there and let someone else ask a question. Thank you.

Thanks, Gary. I'll pause there and let someone else ask some questions. Thank you.

Operator: Once again, if you would like to ask a question, please press star and then one to join the question queue. To withdraw yourself from the queue, you may press star and two. Again, that is star and then one to join the question queue. Gentlemen, in showing no further questions at this time, we do have a follow-up from Alastair Hunter. Please go ahead with your follow-up. Alastair Hunter, your line is live. Please proceed with your follow-up.

Speaker #3: I sort of flagged in my comments that we will continue to be a programmatic issuer into the RMBS market. Generally, what that has meant historically is a term one-term transaction per annum.

Once again, if you would like to ask a question, please press star, then 1 to join the question queue. To withdraw yourself from the queue, you may press star, then 2. Again, that's star, then 1 to join the question queue.

Speaker #3: And it's normally sort of around the sort of September, October November timeframe. So I think you could sort of use that history as a good guide as any as to our intentions as we look forward, certainly in the short term.

And, gentlemen, it's showing no further questions at this time. However, we do have a follow-up from Alistair Hunter.

Please go ahead with your follow-up.

Speaker #2: And then in terms of the partnerships business, we've got about 10 different partnerships some are one of the key more recent ones as you know, Alastair, is the partnership with Elders where they distribute our product under their brand.

Alistair Hunter, your line is live. Please proceed with your follow-up.

Alastair Hunter: Thanks. I will continue asking questions if no one else is wishing to ask questions and keep the bots happy. In terms of competitive conditions on the deposit side, just interested in how you have seen your newer initiatives on the more online savings accounts and the competitive dynamics. Obviously Macquarie has been very competitive there, Revolut coming in and targeting. What, I suppose, dynamics you expect to see in terms of competition on the margin of what is one of the higher growth lines or channels of deposits at the moment, please?

Speaker #2: That has continued to grow. That part of the portfolio. I guess one of the key things for us was growing our branded deposits as well through Hello Saver.

Thank you. So we'll continue asking questions if anyone else wishes to ask questions, and keep the bots happy.

Speaker #2: So our requirements for additional funding have been reduced given we've been out of branded deposit products. So yeah, still growing. So an important partnership for us, but more most importantly is our branded deposit growth has been stronger than and with great momentum.

Um, in terms of competitive conditions on the deposit side, just interested in how you've seen your, you know, your newer initiatives on the more online savings accounts and the competitive dynamics.

In addition, officer, Macquarie has been very competitive. They're, in fact, coming in and targeting. What—what...

I suppose what dynamics do you expect to see in terms of competition on the margin, and what is one of the higher-growth mines or channels of deposits at the moment, please?

Speaker #4: Thanks. And then final question for me, if that's okay, just around the branding. As to when you're kicking off the change in branding to the MyState across the AusWide business.

Brett Morgan: Yeah. Thanks, Alastair. On the basis that credit slows a little bit, we expect competition for deposits to become a bit softer as well, given the demand for money be a bit less. But we are pretty excited by the momentum we have got in our Hello Saver, the digital part of the business. We have also got partnership channels and our branch network. So we have got a nice amount of distribution, which supports our deposit gathering. So from a competition perspective, we see if the competition on lending strengthens a little bit, we expect the competition on deposits to loosen a little bit given the demand for money. So overall, I guess I am pointing to what Gary talked about around NIM. But yeah, we expect to continue, but are comfortable that we can continue to grow, particularly our high-returning businesses to support profitable growth in the future.

Speaker #3: We've been slowly introducing the MyState brand through a number of to the AusWide customers and broader business across a number of fronts. So we've moving for our broker distributed mortgages moving quickly towards using solely a MyState brand.

Yeah, thanks, Alistair. Um, we expect, you know, if on the basis that credit flows a little bit, we expect competition for deposits to become a bit tougher as well, given the demand.

For money, be a bit less, but we're pretty excited by, um, the momentum we've got in our, um, hello. So, we have the digital part of business. We've also got partnership channels and our branch network. Um, so we've got a nice...

Speaker #3: So some things are accelerated. On other parts like the branches in Queensland that are AusWide branded and some other important things, we will only rename the business.

Speaker #3: I just wanted to be clear, the brand won't change. We're very customer-centric and delivering great service. But in terms of the name change, that will be somewhat correlated to the core banking change.

Amount of distribution which supports our deposit Gathering. So from a competition perspective, um, we see, you know, we see if the, if the competition on lending, um, strength is a little bit. We expect the competition on deposits to loosen a little bit, given the demand for money on there. So overall, I guess I'm pointing to, um, what Gary talked about around him?

Speaker #3: So when we move the customers over onto the new core banking platform, that's the time when we change the name. So the shorter answer is it's probably 12 months away.

That, um, yeah, we expect to continue, but we're comfortable that we can continue to grow, particularly our high-returning businesses, to support.

To support profitable growth in the future.

Alastair Hunter: Thank you. And then just continuing on the funding mix side, appetite for securitization, and also interested in terms of the Auswide businesses Elders relationship that started slowly in deposits as to whether you have started to see some momentum in that intermediary channel with deposit flows, please.

Speaker #3: For the whole business to rebrand.

Speaker #4: Good. Thank you. No more questions.

Speaker #3: Thanks, Alastair.

Speaker #1: And at this time, end showing no additional questions. I'd like to turn the floor back over to Mr. Morgan for closing remarks.

Thank you, and then just continuing on the funding mix side, you know, appetite for securitization, and also interested in terms of the Ozwide business and Elders relationship— that sort of started slowly— and deposits as to whether you've started to see some momentum in that intermediary channel with deposit flows. Please.

Gary Dickson: Yeah. So I guess as we flag on slide 15, Alastair, certainly securitization remains that important funding source for us. And as you know, we also use it as a capital management tool. I sort of flagged in my comments that we will continue to be a programmatic issuer into the RMBS market. Generally, what that has meant historically is one term transaction per annum, and it is normally sort of around the September, October, November timeframe. So, I think you could sort of use that history as a good guide as any as to our intentions as we look forward, certainly in the short term. And then in terms of the partnerships business, we have got about 10 different partnerships. One of the key more recent ones, as you note, Alastair, is the partnership with Elders, where they distribute our product under their brand.

Speaker #3: Thanks, Jeremy. And thanks, everyone, for joining the call today. Gary and I look forward to catching up with some of you over the weeks ahead.

Yeah, so, um, I guess, as we flag on slide 15, Alistair, certainly securitization, uh, you know, remains that important funding for us, and, as you know, we also use it as a capital management tool. Um, I sort of flag in my comments that we, um, will continue to be a programmatic issuer.

Uh, into the rnbs market. Um, generally what that has meant, historically is, uh, a term 1, 1 term transaction, uh perom, uh, and it's normally, uh, sort of around the, uh, sort of September October November time frame. So, um, I think you could, um, sort of use that history as a as a good, a guide as any as to our intentions, as we look forward. Certainly in the short term

Gary Dickson: That has continued to grow, that part of the portfolio. I guess one of the key things for us was growing our branded deposits as well through Hello Saver. Our requirement for additional funding have been reduced given we've been out of branded deposit products. Yeah, it's still growing. An important partnership for us, but most importantly is our branded deposit growth has been stronger and with great momentum.

Things for us was growing, our branded um deposits as well through. Hello saver. So our, our requirement for additional funding have been, um, reduced given we've been out of branded um deposit products. So yeah, still growing, um

So an important partnership for us. Um, but more most importantly, is our, our branded, um, deposit growth has been stronger than, um, and, and with great momentum

Alastair Hunter: Thanks. Then final question from me, if that's okay, just around the branding as to when you're kicking off the change in branding to the MyState across the Auswide business.

Brett Morgan: We've been slowly introducing the MyState brand to the Auswide customers and broader business across a number of fronts. We're, for our broker distributed mortgages, moving quickly towards using solely a MyState brand. Some things are accelerated. On other parts, like the branches in Queensland that are Auswide branded and some other important things, we will only rename the business. I just want to be clear, the brand won't change. We're very customer-centric in delivering great service. But in terms of the name change, that will be somewhat correlated to the core banking change. So when we move the customers over onto the new core banking platform, that's the time when we change the name. The shorter answer is it's probably 12 months away for the whole business to rebrand.

Excellent then final question for me, if that's okay, just around the branding. Um, as to when, when you're kicking off the the change in branding to the my state, across the, the ozwide business.

We've been slowly introducing the MyState brand through a number of, um, to the Ozwide customers and broader business across a number of fronts. So we...

We're moving for our, um, broker-distributed mortgages, moving quickly towards using solely a Mistake Brands. Um,

So some things are accelerated on other parts. Like, um, the branches in Queensland that are Ozwide-branded, and some other important things, we will only rename the business. I just want to be clear, the brand won't change. We're very customer-centric in delivering great service, but in terms of the name change, that will be somewhat correlated to, um, the core banking change. So, when we move the customers over onto the new core banking platform, that's the time when we change the name, so it aligns a lot.

the shorter answer is, it's

it's probably 12 months away.

For the whole business to rebrand.

Alastair Hunter: Thank you. No more questions.

Thank you. No more questions.

Brett Morgan: Thanks, Alastair.

Thanks Alistair.

Operator: At this time, in showing no additional questions, I'd like to turn the floor back over to Mr. Morgan for closing remarks.

Brett Morgan: Thanks, Jamie, and thanks, everyone, for joining the call today. Gary and I look forward to catching up with some of you over the weeks ahead. Thank you.

And at this time, as I am showing no additional questions, I'd like to turn the floor back over to Mr. Morgan for closing remarks.

Operator: That does conclude our conference for today. We thank you for participating. You may now disconnect your lines.

Thanks, Jamie. Thanks, everyone, for joining the call today. Gary and I look forward to catching up with some of you over the weeks ahead. Thank you.

That does conclude our conference for today. We thank you for participating. You may now disconnect your lines.

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