MyState reported a 41.2% rise in underlying FY26 NPAT to $58.3 million at its annual meeting, with merger synergies reaching $11.8 million on a run-rate basis. The bank kept its FY28 synergy target of $20 million to $25 million unchanged, while shareholders considered director, remuneration and CEO incentive resolutions.
- Underlying NPAT rises 41.2% to $58.3 million
- Underlying EPS reaches 34.3 cents
- Final dividend increases to 12.5 cents per share
- Merger delivers $11.8 million in run-rate synergies
- Up to 175,439 performance rights proposed for CEO Brett Morgan
FY26 profit growth and dividend increase
MyState Limited (ASX:MYS) used its annual meeting to put a sharper figure on the benefits of its enlarged banking group: underlying net profit after tax rose 41.2% to $58.3 million in FY26, while underlying earnings per share reached 34.3 cents, up 11.7%.
The board highlighted a final dividend of 12.5 cents per share, 1.5 cents higher than the prior year. Statutory NPAT was $56.2 million. The result had already been reported in detail, including the FY26 profit and synergy result, but the AGM presentation framed the numbers as evidence that the merger is now contributing to a broader earnings base.
Merger synergies move toward the FY28 target
MyState said the merger had generated $11.8 million in run-rate synergies, with integration execution still on track. Its target of $20 million to $25 million in run-rate synergies by the end of FY28 remains unchanged.
The company said it has completed the move to a single core banking platform, banking licence, retail bank brand and loan origination system. It also listed 158 integration initiatives and said operating-model optimisation remains in progress. The figures are consistent with the earlier $11.8 million synergy milestone, but the remaining value of the programme still depends on delivery over the next two financial years.
Loan growth and higher-return businesses
The group reported a $14.0 billion loan book, up 7.2%, and customer deposits of $10.6 billion, up 4.0%, in the financial performance section of the presentation. It also pointed to a more diversified earnings mix, with higher-return businesses contributing 11.3% of group profit compared with 6% in FY25.
Separate portfolio figures in the CEO’s address showed $13.6 billion of customer deposits, alongside $10.6 billion in home lending, $371 million in equipment finance, $970 million in managed-funds funds under management and $560 million in trustee-services funds under administration. The presentation did not explain the difference between the two customer-deposit figures, so the basis for comparison remains unclear.
Shareholders consider board and CEO incentive resolutions
Proxy votes shown at the meeting indicated strong support for the re-election of Warren Lee and Andrea Waters, adoption of the FY26 remuneration report, and approval to issue up to 175,439 unlisted performance rights to Managing Director and CEO Brett Morgan for FY27 remuneration.
However, the presentation showed proxy positions and the chair’s stated intention to vote open proxies in favour; it did not provide final poll outcomes for those resolutions. That distinction matters for investors assessing whether the meeting business was formally approved, particularly the CEO performance-rights grant.
Bottom Line?
The easy part of the merger story is now visible in the $11.8 million synergy run rate; the harder test is converting the remaining FY28 target into sustainable earnings without losing clarity on the group’s underlying funding metrics.
Questions in the middle?
- Were all four shareholder resolutions formally approved once final poll results were counted?
- How much of the remaining $8.2 million to $13.2 million synergy opportunity will flow through by FY28?
- Why does the presentation report customer deposits of both $10.6 billion and $13.6 billion?