MyState Limited has reported a 4.59 per cent increase in net profit after tax.
The Tasmanian-based financial institution achieved NPAT of $31.46 million for 2017-18, up from $30.08 million in the previous year.
Improving services for customers and increasing efficiency had delivered a strong financial result, managing director and chief executive Melos Sulicich said.
“We made significant progress, continuing to build and refine our digital proposition, which positions MyState as a modern, customer-centric bank,” Mr Sulicich said.
“We are committed to creating the best customer experience and have improved our online platform, which offers customers personal loan, transaction account and term deposit products.
“Our loan book increased at around twice system growth during the second half, closing the year at $4.55 billion.
“Increasingly, we are benefiting from more targeted marketing, supported by our innovation in technology, which enables us to increase scale and compete more effectively.”
He said the loan book had grown at an annualised rate of nearly 9 per cent in the last two years, while very high-quality lending was maintained.
The company said investor and interest only lending was will below that of peers and well within the regulatory guidelines.
Mr Sulicich said the wealth management business contributed strongly, with an improved result and solid growth in fund management.
He said increasing regulation was hitting smaller banks harder than bigger banks and imposing extra costs.
He said he expected the banking business to continue to achieve above-system growth as MyState focused on growing and becoming a more sophisticated digital bank.
Income from operations increased by 1.38 per cent to $126.34 million.
The board declared a final, fully franked dividend of 14.5c per share.
That took total dividends for the year to 28.75c.