The MyState Limited (ASX: MYS) share price is down today, posting a drop of 4.69% to $3.66 at the time of writing. This came after the company released its full-year results for the 2020 financial year (FY20).
What was in the announcement?
In the year to 30 June 2020, MyState recorded a statutory net profit after tax of $30.1 million. This compared to net profit after tax from continuing operations of $29.8 million in financial year 2019.
Net operating profit before provisions and tax increased 12.9% to $47.9 million in the 2020 financial year from $42.4 million in the 2019 financial year. The company stated that it had strong core operating results before coronavirus-related credit loss provisions.
In the release, MyState reported net interest income of $99.5 million, an 11% increase on the prior year. The company stated that it benefitted from balance sheet growth, disciplined margin management, a significant increase in retail deposits and lower wholesale funding costs.
The bank had a CET1 ratio of 11.1% at 30 June 2020, which it stated remained comfortably above regulatory requirements.
MyState's board resolved not to pay a final dividend for the year with the company stating that this was "to maintain the group's strong capital position during the current economic uncertainty".
The company's CEO and managing director, Melos Sulicich, commented on the outlook for the company, stating:
Following the hard work of the past 6 years, MyState is set for a bright future. These results show our investments in modernising our bank and wealth management business have been well received by our customers.
About the MyState share price
MyState is a financial services group with its headquarters in Tasmania. It offers personal and commercial lending, mortgage lending, savings and investment products, wealth management and insurance.
In April, MyState announced that its subsidiary MyState Bank Limited had been placed on review by Moody's for a credit rating downgrade.
The MyState share price is up 16.19% since its 52-week low of $3.15, however, it is down 26.5% since the beginning of the year. The MyState share price is down 20.09% since this time last year.
