Today is my birthday! Although I don’t really celebrate it as it’s just my 27th, I thought to myself, I better buy myself a present! I bought some shares in MyState!
Now you might be asking what in the world is that? It’s a bank…. don’t get too excited. This bank is based in Tasmania which is a little island south of the mainland in Australia. It makes it money from loans and also from funds under management.
The above figure is of the loan book spread across the country. You can see that is mostly focuses on Tasmania and the Eastern states of Aus. Tasmania has seen solid consistent growth over many years and I hope for this to continue.
MyState had a fantastic year. Income, Net Profit, dividend, earnings per share and Funds Under Management are all up. What more could you ask for?
As you can see over the last 2 years the total book loans have increased. Personal loans have decreased slightly (not a bad thing) but overall Home Loans have increased (good).
As you can see in the figure above, the higher Loan To Value Ratio has been decreasing over the past two years. If you aren’t from Australia then you may not have heard that all banks were under investigation for risky loans among other things. I am glad to see that only 19.5% of all total loans made by MyState are over 80% LVR. This brings a lot more security to the bank and less risk. I have heard early rumours that some of the banks are closer to 40-50% geared towards 80%+ LVR. Now that is risky!
The dividend has been steady for many years but has recently been given a slight boost. I hope that this is the start of many small dividend increases. I think overall, this is a very solid dividend payer at ~6.35% + franking credits (tax) and should increase earnings per share over time and therefore pay a higher dividend over time.
At 6.35% yield this adds approximately $101.78 to my forward dividend and puts my forward dividend at $1007.93 a year! I have cracked the $1000 a year in total forward dividend payments. Yay, nice present to myself!