The MyState (ASX:MYS) share price is sliding today after the company released its report for the first half of FY21. Here’s the lowdown.
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MyState Limited (ASX: MYS) shares are falling lower in today’s session after the company released its report for the first half of FY21. At the time of writing, the MyState share price has slumped 1.93% to $5.07.
What’s impacting the MyState share price?
Investors are driving down the MyState share price after the fintech released its latest half-year results this morning.
A key highlight from the company’s report was an 8.4% increase in revenue of $63.3 million. In addition, MyState saw net profit after tax (NPAT) soar 12.6% to $17.0 million for the period.
The company also recorded an 18.8% growth in core earnings of $26.4 million. It noted that the result was driven by above-system lending growth and improvements in the cost of funding.
MyState also achieved a peer-leading ROE of 9.94%, up 65 basis points from the prior corresponding period.
Despite reporting an “outstanding first half result” the company determined to cut its interim dividend, which may explain the MyState share price languishing today. Management reinforced that the interim dividend was reduced in order to achieve “the right balance between pursuing significant organic growth opportunities in the business and rewarding shareholders with dividends”.
As such, MyState declared an interim dividend of 12.5 cents per share after not paying a final dividend in 2020.
MyState is a financial services group with its headquarters in Tasmania. It offers personal and commercial lending, mortgage lending, savings and investment products, wealth management and insurance.
According to the company, it is well-positioned for accelerated growth. MyState cited various industry and regulatory dynamics that could fuel growth. These include a stronger rebound in the Australian economy and renewed consumer and business confidence.
Managing director and chief executive Melos Sulicich also highlighted the fact that the digital transformation of MyState’s services will help grow its customer base.
He stated “…we will have an ongoing focus on digitalisation of operations, adding to our capability, and generating momentum to driving further activity and investment in attracting new customers.”
Based on the current MyState share price, the company commands a market capitalisation of around $468 million.
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Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.