Home loan book growth of 10.3% in a challenging market is an...

Home loan book growth of 10.3% in a challenging market is an excellent result.  The problem is higher funding costs are eroding net interest margin.
Lower profitability has resulted in management increasing the dividend payout ratio.  The risk of maintaining the dividend at current levels is increasing.

Commenting on the Hayne Royal Commission Melos Sulicich, said:

"Although MyState was not called to provideinformation or evidence to the Royal Commission, a number of recommendations in the report may have someimpact on the Group. MyState welcomes recommendations to strengthen the accountability and effectivenessof regulators.MyState notes the very important role that mortgage brokers play in bringing competition to the mortgage marketin Australia. The Commission has made recommendations to change mortgage broker remuneration. Mortgagebrokers are valued by customers and almost 60% of mortgages are written by mortgage brokers across thenation. MyState is committed to working with the mortgage broking industry through this period of uncertaintyand change to help the industry evolve and continue to generate competition."

It is not clear what the impact will be, but it would be interesting to know what role mortgage brokers play and how much business they introduce.

I hope you are right with external factors and recovery.  Notwithstanding all the initiatives and strategy for organic growth, management are guiding for full year NPAT 3-5% below FY18.

I bought in at $4.41 near 52 week lows on the basis MyState would be benefiting from the resurgence of Tasmania’s economy, but also with all the big four except for Westpac retreating from wealth management, and with AMP in disarray.  AND for the dividend.