MyState updated its FY24 guidance, stating it will prioritise margin over rapidly expanding its lending book due to market conditions. While home loan book growth in October was 1.9x system, the four-month growth aligns with system trends.
Customer funding as a percentage of total funding is on target at 70% as of the end of November, with a shift toward higher-cost term deposits.
The projected 2024 first-half average net interest margin is in the range of 1.45% to 1.49%.
For FY24, MyState predicts a lending growth of >1.0x system, a deposit composition of >70% of funding, a 7.5-12.5% decrease in earnings per share, a cost-to-income ratio of 64-66%, and a 7.5-8.0% return on equity.