MyState Bank axing branches as digital business grows

The bank will close its Kings Meadows and New Town branches in Tasmania - saying there are alternative branches within 4 kilometres of each - and its four Central Queensland branches.

Parent company MyState Limited will also close the Devonport branch of its TPT Wealth (formerly Tasmanian Perpetual Trustees) business and rationalise corporate office locations in Tasmania, leading to an expected one-off restructuring cost of about $2.4 million before tax.

Tasmanian-based MyState said all positions had been redeployed into other areas of the business, so there would be no job losses.

MyState said the branch closures were in response to a continuing decline in branch transactions.

"Today, two thirds of MyState's customers are using internet banking, with the proportion receiving eStatements increasing from 29 per cent a year ago to 46 per cent," it said in material accompanying the release of its 2019-20 results.

"Acquisition of new customers through digital channels is increasing, with the number of new online customers doubling again during the year."

Managing director and chief executive Melos Sulicich said: "Six years ago, we made decisions about where we were headed and executed a digital strategy that has transformed MyState Bank into a digital bank which is expanding rapidly along Australia's east coast."

"Customers appreciate the changes we have made, with our new digital capabilities supporting customer growth.

"Our products are easier to use and always accessible via our mobile and internet banking applications.

"TPT Wealth has also been brought into the digital age with the asset management platform transformed.

"Investors are now able to sign up, trade and top up investments easily online."

Statutory net profit after tax dropped by 3 per cent to $30.1 million.

The previous year's profit was boosted by a one-off $1.2 million gain on the sale of MyState's financial planning business.

Net operating profit before provisions and tax grew by 12.9 per cent to $47.9 million.

The board decided not to pay a final dividend.

The company said that was to maintain a strong capital position.

Mr Sulicich said MyState was set for a bright future.

"These results show our investments in modernising our bank and wealth management business have been well received by our customers," he said.

"We are ready to compete for market share, grow our mortgage book and secure a greater number of deposit customers across Australia.

"TPT Wealth is also well placed to win market share in eastern states and grow its business."