MyState Limited (ASX:MYS) Completes Merger with Auswide Bank
Merger Details
MyState Limited has successfully implemented its merger with Auswide Bank Ltd, creating a larger regional bank with a diverse customer base and expanded geographic footprint. The merged group operates under four brands: MyState Bank, Auswide Bank, SelfCo, and TPT Wealth. The combined entity will distribute banking products through 23 branches, digital platforms, and broker networks across Australia’s eastern seaboard.
Financial Profile
The merged group holds a balance sheet of $12.7 billion in home lending and $9.9 billion in customer deposits. It serves a total of 272,000 customers, with MyState having 180,000 and Auswide 92,000. The merger is expected to deliver pre-tax cost synergies of $20 million to $25 million annually by FY27, and the business is projected to be earnings per share accretive from FY26.
Future Outlook
Operational integration is planned to be completed within three years, after which the business will realize ongoing merger benefits. The merger enhances the group’s scale and funding flexibility, positioning it to invest further and offer Australians alternatives for banking, asset finance, and wealth management needs.
Executive Comments
MyState Managing Director & CEO Brett Morgan said, “Today we celebrate the first day of a new MyState with the Auswide merger complete. We look forward to growing into a stronger and larger regional bank with a more diverse customer and geographic footprint.” New MyState Chair Sandra Birkensleigh added, “We expect significant long-term benefits for shareholders from merging two strong, customer centric businesses with quality loan books and deep roots in their local communities.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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