ISCOVER
The CEO of MyState Limited has revealed incoming broker investment, including a new origination system, following strong growth in home lending and equipment finance following the Auswide merger.
In February, the Bundaberg-headquartered lender Auswide Bank (Auswide) became a subsidiary of Tasmania-based lender MyState Bank Limited (MyState), alongside its equipment finance lender Selfco and wealth and commercial lending and managed funds arm TPT Wealth.
Four months after completing its merger with Auswide, MyState Limited has now released its financial results for the financial year ending 30 June 2025 (FY25), revealing that it has seen strong growth across the group loan book and is continuing to consolidate its offerings.
According to the group’s financial results, released on Tuesday (19 August), the company now serves over 275,000 customers across Australia’s eastern seaboard and manages $10.1 billion in customer deposits and nearly $1 billion in funds under management.
Mortgage volumes rise post-merger
Over FY25, the group saw its home loan base increase by 62 per cent to $12.9 billion ($8.3 billion at MyState Bank and $4.6 billion at Auswide Bank).
Looking at loan book growth post-merger, its volumes grew 7.5 per cent on an annualised basis.
The group recorded $3.8 billion in mortgage applications and $2.3 billion in settlements over FY25.
There was a substantial increase in volumes in the second half of the financial year (during which the merger took place), with both applications and settlements rising in the latter half.
For example, there was a 53 per cent rise in applications between the two halves of the financial year (from $1.5 billion to $2.3 billion), while settlements increased from $900 million in 1H25 to $1.4 billion in 2H25.
The vast majority of applications and settlements in the second half were from MyState Bank (with Auswide Bank contributing just $400 million).
Speaking to The Adviser, MyState managing director and CEO Brett Morgan said that broker support had been crucial to the group’s success in FY25.
“Our annualised growth rate on home loans has been 7.5 per cent post-merger. So, that means that we’ve continued to deliver good service and decent product and good experience to brokers, which is really important to us,” Morgan said.
“Both businesses were built around brokers for broker distribution and what’s critical for us is we continue to offer a good experience to brokers, and they continue to leverage us.
“We don’t have any physical presence in the largest states of Victoria and New South Wales, and we partner with brokers to grow in Tasmania and Queensland. They are a key part of our home loan growth.”
He noted that the recent broker pilot that enables BDMs to offer all products and brands across the group had been well received.
He said: “It’s a transformative transaction when two regional banks who’ve operated the way they’ve operated for a while merge. So the nice bit is the way the teams have come together and now they’re able to talk about all our products; whether they’re a MyState product or an Auswide product or a Selfco product. Being able to sell multi-brand has been exciting for us and will continue to be for our future.”
Morgan outlined that the bank is continuing to invest in its broker offering, highlighting the recent appointment of Mark Woolnough to lead the group’s broker distribution channel for mortgages.
Over the year, MyState also moved its retail customer base onto a new digital banking platform, noting that digital application enhancements have supported improved lending approval times.
According to the CEO, 40 per cent of loans reached a full decision within five days, with initial feedback hovering around two days.
Increasing focus on equipment finance
The equipment finance arm Selfco (which was acquired by Auswide just ahead of the merger and is led by Rob Burden and head of sales Mal Withers) has also seen marked growth in its volumes, with this portfolio rising by 43 per cent since the merger, from $110.8 million to $158.5 million.
The loans are nationally distributed through the broker channel.
Morgan told The Adviser: “Selfco – our equipment finance business – partners with brokers to grow their business. Since Auswide acquired it in August last year, they’ve grown the business by nearly 100 per cent – and in the four-month period since the merger, we’ve grown that business by over 40 per cent.
“I’m incredibly proud of how that team has come in and just hit the ground running, and it’s performing really well, and we’re so happy with it.”
The CEO also stated that equipment finance would be a core priority for the group moving forward, flagging that the asset finance loans provide the group with improved returns.
Indeed, Auswide Bank’s net interest margin increased by 21 basis points over the year, reflecting the growth in equipment finance loans originated by Selfco and maturing fixed-rate home loans repricing to higher variable rates throughout the year.
“We’re excited to see [Selfco] grow substantially in the future. It will remain a purely broker-distributed business; that’s our distribution model, and we think it works well with brokers who know that space,” he added.
“Our business has predominantly been focused on owner-occupied, principal and interest lending, which is low-risk lending and low rate. That is great for a very stable, strong business, but it’s a lower returning business. Moving into a different asset class, being equipment finance with really experienced operators, means we’re comfortable that we can scale that business up and drive returns out of that business.
“So we can add competition in the market and provide another choice to brokers, but also for our business, it supports some improved returns.”
New loan origination system to come
Moving forward, MyState Group will continue to operate separate brands, but Morgan revealed the bank is “kicking off an exercise just to understand the value of the brands in each of the markets we operate in”.
The group is also moving to consolidate the banking licences to operate under just one ADI licence and one balance sheet and is set to move to a single loan origination system before the end of this financial year.
The CEO told The Adviser that while both MyState Bank and Auswide Bank had been “keen to invest into improving the broker experience – assessing more efficiently, more quickly and delivering a better experience” while separate entities, neither had delivered due to the “significant investment”.
However, he said that the merger enabled them to take advantage of cost efficiencies, and that choosing a new origination system was “a number one priority”.
Morgan said that while the brands would continue to have different offerings, the group wanted to ensure that there was “a consistent experience across home loan decisioning”.
He suggested that the group expected to be live with its chosen loan origination provider before the end of this financial year, with “a brand new, modern loan origination system that’s going to improve the experience we can deliver brokers – including faster times to decision, making it more efficient for everyone and a much more modern experience”.
Morgan concluded: “We are so tied to brokers’ success. We succeed only if brokers choose us and we don’t compete with brokers – we supplement.
“So for us, we offer good product, good price, great, hands-on service, the ability to chat to an assessor, no conflict and a pretty quick turnaround.
“So, by investing in broker, we think we can grow together with brokers.”
[Related: Banking group appoints group head of broker]
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