Now here we go here.

I want you to start today with a brief overview of Ah, my statement.

What we are doing.

Their strategy.

Cover some of the key highlights from the treatment in the first half.

Andan finished with a discussion on the business environment and the outlook a CZ we see at the moment for my state was full following a number of mergers of credit unions over many years and in in the in the last decade. 00:00:54.670 --> 00:01:6.410 We also merged the credit unions, merged with a list of trustee company in Tasmania, Tasmanian perpetual trustees credited, not operating holding company My State Limited with two operating businesses. 00:01:6.740 --> 00:01:12.680 A banking business which is the largest part of the business and wealth management business and wolf management business.

We recently rebranded T p T wealth from testimony in perpetual trustees.

It was a bit of a mouthful, didn't translate also will onto the mainland of Australia.

This is trustee business based in Tasmania, where the funds management business got close to $1.2 billion of funds under management.

From a bank perspective, most of their estates are held on the eastern seaboard of Australia.

Heritage obviously is in Tasmania, but we never got a much larger reported.

There s It's increasingly growing in New South Wales, Queensland and Victoria.

All right, As you heard earlier, where I sex listed were on the I 6 300 we got a market cap of since here 525 million.

But I think we close your story about just over 550 million.

So where the share price is doing pretty well. 00:01:58.910 --> 00:02:1.950 We got about 64,000 shareholders, mostly in Tasmania. 00:02:2.390 --> 00:02:6.680 Do you know the heritage and the de mutualization that we went through last decade? 00:02:7.030 --> 00:02:10.800 But we've got an increasing number of shareholders in the mainland as well.

Now off.

Turn that off by accident.

There we go.

Just learning how to use the technology here on a reality of comparative basis.

Total shareholder returns for my state.

We've performed the average of the eye 6 300 bank stocks over the over 125 year holding period in comparison to the A 6 300 index of businesses delivered superior turns to shareholders.

Well, that's pleasing to see that the business transformation that we've been engaged in over the last few years is starting to deliver strong returns to to shareholders.

We're a relatively stable dividend.

We've recently invested quite heavily in the business, would continue to invest quite hitting the business, but a dividend yield is still around 5.1%. 00:02:59.580 --> 00:03:0.380 Fully frank. 00:03:1.080 --> 00:03:1.450 That's all right. 00:03:1.920 --> 00:03:8.300 Just onto the onto the business near we see our purpose a za companies to help people achieve their dreams. 00:03:8.940 --> 00:03:22.150 We're small retail customer into bank, whether it's for a personal loan for a first car, the savings account to stay for home deposit or indeed, the first time learning itself.

It's really placing that our progress to make financial service is simple and trustworthy has been recognized this year by increasing their customers.

Promoter school, over the half air Custom Net Promoter school increased plus 40.

If you're familiar with the big banks, they usually start with the monitors in front of them.

The other regional banks sort of are around neutral.

Plus 40 is one of the leading schools in the banking industry in Australia and is their start to drive some reason reasonable customer growth.

In recent years, we've developed a scalable, more cost effective platform, which is supported boy CR eam. 00:04:0.000 --> 00:04:5.780 Other analytical capabilities that help us to auntie's it by customer needs, like everywhere. 00:04:5.780 --> 00:04:12.100 Customer's expectations about what they expect from banking is increasingly shaped by their interactions with other service providers.

This has caused us to think deeply about how to provide air service is in a different and different share and why we've invested in technology To live.

A better service is through digital innovation and incapability people capability in order to re engineer the process is, and the outcome is that we can consistently deliver better customer experiences.

A goal is to be easy for customers to bank with.

We offer digital service is that give customers what they want, how they want and in the medium that they want, which is increasingly over the Internet environment ball channels.

We've also become a lot more agile.

As an organization, we continue to broaden our digital Internet and mobile banking service is Bonus Saver Account recently received a five star rating from Ken Starr and Experts Choice Award from Moses confirming the proctor is one of the country's top in its class and business.

Online Saver was also awarded and Experts Choice Award from Mozo Investment in technology and marketing has increased significantly to continue to build our digital capability, and the awareness of their brand marketing spin during a period is also contributed to customer acquisition, which focused on building the banks franchise on the Australian Eastern Seaboard.

Digital marketing is enabling us to reach a broader population with new online.

My Ball products is two a half year results in some of the harlots half year results.

Is delivering on air strategy to digitize their business, which ensures that we're well positioned to serve customers into the future. 00:05:52.370 --> 00:06:0.350 We've broadened their business with a suite of online and mobile offerings while increasing both sides of the balance sheet in order to generate economies of scale. 00:06:1.030 --> 00:06:8.120 A solid revenue uplift is analogous to post a strong first half results, and we very carefully managed margins in an environment. 00:06:8.530 --> 00:06:12.150 We've also benefited from rapidly falling wholesale funding costs.

Program of using digital platforms continues with the revitalization of their war thesis as I said Before Brandon TP to wealth.

This is part of a multi year digital transformation for that business, which were Layer worth manager of business to offer products nationally which we haven't been able to do before.

We're continuing to build a scalable digital bank and we're benefiting from process re engineering and now Maur the use of robotics technology to increase their ability to scale at lower average cost these processes, improved customer service and the savings of being reinvested into the business in particularly marketing and digital functionality driving customer growth. 00:06:51.690 --> 00:07:6.960 We've certainly got a lot of positive development and remain tum happening in the business at the moment, which is driving business growth and ongoing sustainability for us at my steak, that's a really exciting time as more details on the results. 00:07:7.310 --> 00:07:15.110 Most of the key metrics for the half moon positively compared to the prior corresponding periods, and it's clear to us it's a very strong result.

That's despite a challenging environment with increased competition in the low risk on a rocket board lending market.

In particular, those with loan to valuation ratio of listing 90% which is their absolute Britain butter operating expenses, did increase 4.8%.

But income growth exceeded cost growth and we had positive jaws and 1/2 net profit was up more than 5% benefiting from higher every balance street relative the pro a corresponding period.

That interest margin importantly, was also up three basis points on the pry half and we maintained a discipline focus on margin management and benefit from lower funding costs.

And Brexit margin in December was 11 basis points higher than the average of the half. 00:07:59.690 --> 00:08:4.650 Earnings per share increased 16.57 to 16.57 cents a share. 00:08:5.090 --> 00:08:17.620 And we maintain the interim different at 14.25 cents, which represents a payout ratio of 86% which is towards the upper end of our payout range, just a little bit on the on the book of what that looks like.

Lambo growth was a bit slow in the first quarter, but stronger in the second quarter.

Total lending grew 1% during the during the period to 5.1 billion at the end of December.

Lending momentum, however, has returned with very strong application flows at the end of the calendar year and very high application flows since the first of February under the federal government's first home loaned deposit scheme.

So we anticipate very strong bank balance sheet growth in the second half.

The geographic distribution of airline will continue to broaden with 41% of their loan book in Tasmania and 56% now in the eastern states of Queensland, New South Wales Victoria. 00:08:58.580 --> 00:09:7.850 As their loan book becomes more nationally representative, it reduces concentration risk to the test made an economy and we expect that trend to continue over a period of time. 00:09:8.620 --> 00:09:22.350 Five years ago we were a testimony in bank with aspiration and now, with more of a national bank based in Tasmania, air impairment levels remained a historic lows and very few mortgages with very few mortgages in position.

I think at last count we had to mortgage is in position.

Credit conditions remained pretty benign with a reas remaining will below industry benchmarks.

Just a few words on TP to wealth funds under management closed a decade high of just under $1.2 billion.

Revenue for the period was up 5.1% on a continuing basis, with higher funds under management revenue and trusty fees. 00:09:49.370 --> 00:10:8.350 As I mentioned, the rebounding to TP to Wealth and the new investor portal represent the first step in a multi year program, the positions this business for growth nationally without Source Fund administration in a registry portal administration to a leading third party provider, which will enable efficiency benefits as the business grows scale. 00:10:9.500 --> 00:10:15.410 We've also undertaken some product rest relation today, closing the platform mortgage funding September 2.

There's an anointed a simpler for the portfolio and to be more product rest elect rationalization and simplification simply simplification simplification, its outward to say sometimes a cz we as we go forward.

Just a few words in the sixth row ahead a few words to say about this over the weekend and late last week.

So I went.

I won't say too much today, but my view is that we're in a Lo Mo Joe economy, Um, character.

Always, Bulow Interest writes.

That could go lower on in any of it.

They're gonna be low by historical standards for a very long period.

Time to come.

We've got low consumer confidence.

We've got low business confidence. 00:10:53.560 --> 00:11:4.100 Fortunately, however, people continue to pay down the mortgage is well ahead of scheduled repayments, and I think that this is gonna provide some sort of buffer to the economy into the into the future. 00:11:5.430 --> 00:11:11.510 Economists expect the cash rate to be lowered by further 25 basis points around the middle of 2020 financial markets.

This thing is gonna come down around the end of 2020.

It's too early to tell how much it's gonna come down, boy.

But it certainly looks like it's gonna come down over the balance of this year, and it's also too early to tell.

I think what a Corona virus let's slow down is gonna do to the world or the Australian economy.

But as we've heard this morning already, it's looking like it's starting to catch up to the world economy pretty quickly.

Much of the Reserve Bank 75 basis point reduction in 2019 has already been passed through mortgage rights, and what we're seeing now is people's house buying intentions increase and has process down into increases well on.

Whilst there's two sides of the house price increasing, there's two sides to that coin. 00:11:55.130 --> 00:12:3.380 What the increase is likely to do is to improve the wealth effect on the Australian population and on consumers, which may lead to an increase in confidence and therefore spending. 00:12:3.380 --> 00:12:5.250 And ultimately that's a good thing for the economy. 00:12:5.870 --> 00:12:12.550 The testimony in economy continues to perform really well and I expected to continue to perform well and grow for some period of time to come.

Has made an economy is subject to tourism, a favorite of international tourism.

But when international tourism slows and Australian stop going overseas, one place to go to his testimony is expected testimony in tourism economy to keep going for some period of time as well.

Um, fortunately, at this stage, both the national economy and the Tasmanian economy, underpinned by pretty strong population growth, will above always CD averages.

And this provides a bit of support where economy So for us, it's a great time to be a small, clean bank with a very solid and engage customer base.

Customer expectations of digital service is air increasing, which we anticipated when we begin investing in their platform about five years ago. 00:12:58.410 --> 00:13:0.660 As we're small were also nimble. 00:13:0.770 --> 00:13:13.950 We can implement new technology really quickly with banks once near the branch network air technology platform in a was us to engage customers effectively with digital strategies and benefit from lower economies of scale.

We got a very small branch network, we only have 30 and branches non in testimony or foreign.

Central Queensland means that in reality we're more of a digital bank than a traditional bank.

At the same time, the larger banks is struggling with complexity and the district distracted with customer remediation issues.

We read about that in the paper every day.

These issues are not shared by my state, which is closer to their customers and has an incredibly strong customer.

Service is part of their DNA.

Also, I'm really strong Andi excited about the future from our state, some of the things that we've achieved as you can see on the slider.

Digital capability strengthening overall offering, helping helping us to engage customers better. 00:13:57.420 --> 00:14:0.790 More people are using an APP to do their business than any other channel. 00:14:1.340 --> 00:14:8.850 We've experienced a 62% increase in online customer growth over the last half, on top of similar growth in the previous period. 00:14:9.940 --> 00:14:19.500 Customers use customers using less piper and electing to receive online make statements, enabling them to control their lives better but having faster access to weak to statements.

They arrive in your inbox about three days, 3 to 5 days before a paper statement will arrive and also saves us on printing and postage costs.

Online origination and their digital platform of enabled us to build their business strongly.

A greater proportion of their loan book growth has been derived from the straight in Australia Eastern Seaboard.

We anticipate further benefits as we continue to re engineer the business for growth.

We're prepared to Captain Lawson that platform and a positive reputation of their brand through the investment in marketing, which already increased 39% in the half. 00:14:53.610 --> 00:15:1.650 We intend to grow these to keep channeling cost savings in the market activity in order to continue to grow the customer base of the business Nationally. 00:15:2.800 --> 00:15:11.650 We were delighted to be accepted by the National Housing Financing Investing Corporation to join the initial ending panel for the federal government's first time loan deposit scheme.

The government gave allocated 10 places 10,000 places in that scream 5000 places to between come both Bank and National Australia Bank and the other five years of places between 25 smaller banks, including US.

After the 1st 3 weeks of operation of the scheme, we've already exceeded the A total target number of lines and the current flows.

We anticipate that we'll get close to the government cap of 1000 loans for each of the smaller banks.

That means that we will definitely be the largest of the smaller banks in that in that scream.

So we're incredibly, incredibly busy at the moment, helping people treat their dreams and changing the business to make it better. 00:15:55.080 --> 00:16:0.040 Just finally, on a rat look, we're building a holy, scalable banking and funds management business. 00:16:0.390 --> 00:16:2.400 I've got a really positive outlook for the business. 00:16:2.400 --> 00:16:7.850 We're well positioned with excellent asset quality, modern digital platforms and a strong, strong leadership thing. 00:16:8.500 --> 00:16:17.350 Lending momentum has returned with strong application flows and settlements, and we anticipate strong bank balance sheet growth driven by the first time learn deposit scheme in the year in the next half.

That plan is to continue, continue to build both sides of the balance sheet to generate more economies of scales.

A technology platform and robust, respected platform underpins careful margin margin management.

Their ultimate focus is on delivering the best return on equity off the non major banks.

As we range near a cost place, we plan to invest more in marketing, driving customer growth deposits and further profitability and new wealth management.

Platform, as I mentioned, opens opportunities for funds under management growth on the Eastern Seaboard.

And we're investing further in mortgage fund lending systems and looking for a new trust management system to expedite delivery of that part of the business to the to the mainland. 00:16:59.000 --> 00:17:8.660 In the coming period, business bottles evolve significantly, and he's really poised for the next stage of development and growth, so thank you for your time and interested.