MyState's $13.6bn Mortgage Book Shows Broker Power

MyState Bank's merged home-loan portfolio hit $13.6 billion in FY26, with brokers driving 90% of new flows and second-half settlements surging 41%.

MyState Bank has closed out its first full financial year following its merger with Auswide Bank with a home-loan portfolio of $13.6 billion — up 5% from $12.9 billion at 30 June 2025. The result confirms that combining two broker-aligned regional lenders under one banking licence has begun to deliver real origination momentum.

The Adviser reports that brokers generated 90% of MyState's new lending flows during FY26, with broker-originated loans now representing 83% of the bank's total mortgage book. CEO and managing director Brett Morgan attributed the strength of that channel relationship to decisions both MyState and Auswide made years ago to build their national reach through brokers rather than branches.

"Brokers have been absolutely key to our success for decades. We took the early decisions, both businesses, to partner with brokers, and they've been integral and critical to our success," Morgan said.

The total loan book increased 7.2% to $14 billion. Underlying net profit after tax rose 41.2% to $58.3 million, and statutory NPAT increased 58% to $56.2 million.

A Sharp Second-Half Acceleration

The standout figure in MyState's FY26 result is the acceleration in the second half of the year. Settlements climbed 41% half-on-half to $2.1 billion in the six months to 30 June 2026, up from $1.5 billion in the first half and above the $1.4 billion recorded in the second half of FY25.

Application volumes by value rose 16% in the second half to $3.4 billion, compared with $2.9 billion in the first half. Morgan said the key catalyst was the shift to a single banking licence in December 2025, which allowed the combined group to promote both the MyState and Auswide brands more effectively across the broker market.

"We made sure that more and more brokers were aware of what we could offer across both our brands, and with that we saw significantly increased traction and grew well ahead of market in the second half," he said.

Asset quality also improved as volumes grew. Home-loan arrears at 90 days or more declined from 0.44% to 0.32% at 30 June 2026 — a meaningful improvement given that borrowers have been navigating the RBA's cash rate of 4.35% throughout the year.

New lending was predominantly owner-occupied at 79% of flows, with investors accounting for 21%. Interest-only lending increased its share to 17% of new flows, up from 9% in the prior corresponding period. Variable-rate loans represented 96% of new settlements, in line with most borrowers' preferences in a period where fixed rates have remained unattractive relative to variable.

Equipment finance more than doubled over the year, rising 134% to $371 million — a strong result for a lender whose identity has historically been centred on home lending.

What Borrowers Should Know About MyState

Queensland represented the largest share of the mortgage book at 31.6%, followed by Victoria at 22.8%, Tasmania at 19.4%, and NSW at 17.4%. For owner-occupiers in those states who want a lender with a genuine national broker network but without the scale and processing overhead of a major bank, MyState is worth understanding.

Morgan highlighted the bank's lack of channel conflict as part of its broker proposition. "We don't have that channel conflict, so it's important for us that brokers understand that we're partners," he said. He added that the bank operates an entirely Australian-based contact centre and assessment team, meaning broker queries are handled locally with assessors borrowers and brokers can actually speak to.

Integration work continues in the background. The group completed 158 integration initiatives during FY26, with the next major milestone being a unified loan origination system expected to go live by the end of 2026 or early 2027. Morgan said the new platform will allow the full broker team to service any submitted loan, improving turnaround times. MyState maintained its FY28 run-rate synergy target of between $20 million and $25 million, revising integration costs from $29 million to $32 million following a decision to invest in an AI-enabled core-banking platform.

The lender's full rebranding from two names to a single market identity is expected around 2028, with the MyState brand becoming progressively more prominent in the lead-up.

For first home buyers and refinancers looking for a reliable, broker-distributed lender with improving technology and strong credit quality, MyState's trajectory is worth tracking. Our refinance hub includes a wide range of lender options, and our borrowing power calculator can give you a quick read on your capacity under current rate conditions.

Read the full Adviser report.