MYSTATE LIMITED — Earnings Release 2011

Aug 30, 2011

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ASX Media Release 30 August 2011

MyState Limited announces record full-year profit of $22.02 million

HIGHLIGHTS FOR THE FULL YEAR ENDED 30 JUNE 2011

• **Net Profit after Tax of $22.02 million up 27% on prior year ***

• Earnings per share of 32.65 cents up 18.9% on prior year

• Return on Equity of 10.76% up 23.1% on prior year

• Final fully franked dividend of 15.0 cents per share declared

• Full year dividends of 27.0 cents per share up 20% on prior year

• Revenues of $187.36 million up 20.42% on prior year

• Home Lending portfolio growth of 10.48% for year compared to 6.30% national system growth with continuing strong credit quality**

• MyState Financial capital adequacy of 15.00% at 30 June 2011

• Average Net Interest Margin of 3.23% slightly up on last year despite intense competition

• Group cost to income ratio drops by 3.9 percentage points to just over 70%

• Forecast merger synergy benefits realised and ahead of schedule

• unless otherwise stated, the “prior year” refers to the full year ended 30 June 2010, noting that this prior period included only ten months contribution from Tasmanian Perpetual Trustees following the merger in September 2009. **Home Lending National System Growth data source is RBA, Lending and Credit aggregates 29 July 2011 Household Deposit National System Growth data source is APRA - Licensed banks, 29 July 2011.

Hobart, 30 August 2011: MyState Limited (ASX:MYS), a Tasmanian based diversified financial services group (the Group), today released its audited financial result for the period ended 30 June 2011. Net Profit after Tax (NPAT) for the period was $22.02 million which is a $4.68 million or 27% increase on the prior period*. This result is in line with expectations and profit guidance provided to the market in February 2011. Return on Equity for the year ended 30 June 2011 was a healthy 10.76% up from 8.74% the previous year and earnings per share were 32.65 cents up 18.9% on the prior period.

Commenting on the result, Managing Director John Gilbert said: “This is a very strong result in a period of intense competition and subdued economic activity and reflects the continued progress being made in delivering the cost synergies and revenue gains from the merger of MyState Financial (MSF) and Tasmanian Perpetual Trustees (TPT) in September 2009. The results also confirm the strengths of our brands and our ability to win business and maintain strong customer loyalty through the delivery of exceptional customer service and highly competitive offerings.

“When you also take into account that the results still contain one-off costs flowing from the merger implementation, associated with restructuring and redevelopment of the business, together with a significant level of reinvestment in the strategic priorities of the business, these results are extremely encouraging,” Mr Gilbert said.

Business Performance

“Despite the intense competition for retail deposits and quality lending opportunities, we have continued to take market share from our local competitors, with our home lending portfolio growing by $151million or 10.48% compared to the national system growth of 6.30% and our household deposit portfolio growing by $98million or 7.93% compared to national system growth of 7.35%. Importantly we have managed to achieve this result while still maintaining a healthy average net interest margin of 3.23%, slightly up on last year.

“Despite seven increases in the official RBA cash rate and more difficult economic conditions, our 30 day secured loan arrears are still sitting at less than 1% by value, far less than that reported by the major and second tier banks. Our continuing high credit quality is testimony to our rigorous credit assessment processes as well as the quality of our on-going customer relationship management.

“The MyState Financial brand continues to outperform the competition on many key metrics. Recent independent quantitative research undertaken in July 2011 by a leading

research firm, MillwardBrown, shows that MyState Financial customer loyalty levels are amongst the highest in the market, with overall customer satisfaction ratings of 95%, far outperforming other major financial institutions in Tasmania. These results are a testament to our people and their commitment to our customers and our community.

“Over the coming months, the MyState Financial brand will be extended to encompass a full service business banking solution, primarily to the small to medium sized business market, building on the long standing expertise and brand credibility of Tasmanian Perpetual Trustees in the commercial and rural lending markets.

“Exceptional growth via the ADI has not been matched by our Trustee Company, whose fortunes are far more tied to a return of economic confidence and a rise in asset values and corresponding asset based revenues. Nonetheless, we have started to see the turnaround in this part of the business, with the retail managed investment portfolio stable at approximately $930 million and funds under management and advice via the wealth management practice remaining constant at around $740 million.

“The development of a Group-wide distribution strategy has given us clear direction to further enhance the distribution model in order to leverage the synergies of the merger and achieve improved efficiencies and superior customer outcomes. As previously announced to the market, the development of the new MyState Wealth Management Platform in conjunction with Powerwrap and using Praemium technology, will significantly enhance our ability to distribute our cash products, managed funds and advice based services, both to our 200,000 strong local customer base, as well as to a wider national customer base.

“One of the most encouraging signs of the success of the Group distribution capability, flowing from the merger, has been the 26.6% increase (to around 1600 annually) in new and revised Wills being written by our Trustee company, largely as a direct result of cross referral within the Group, supported by a renewed marketing effort.

“I am also pleased to report that, following ratification by Fair Work Australia, our new MyState Limited Enterprise Agreement came into force on the 15[th] of June 2011. This agreement for a period of 3.25 years, provides for a moderate annual wage outcome across the Group of 3.38%, giving economic certainty to the staff and a commercially sustainable outcome to the Company,” Mr Gilbert said.

Financial Performance

Key Shareholder Performance Metrics	30 June 2011	Prior Year*	June 11 v June 10 % Change
Net profit after tax attributable to members	$22.019 m	$17.341 m	27%
Earnings per share	32.65 cents	27.46 cents	18.9%
Return on Equity	10.76%	8.74 %	23%
Dividend per share – fully franked	27.0 cents	22.5 cents	20%
Other Key Performance Metrics	30 June 2011	Prior Year*	June 11 v June 10 Movement
Group Net Tangible Assets	$155.770 m	$149.689 m	$6.081 m
Group Capital adequacy – Tier 1	15.00%	13.83%	1.17%
Net Interest Margin – NIM (%) – MSF	3.23%	3.16%	0.07%
Group Revenues	$187.36 m	$155.58 m	20.42%
Cost to Income Ratio (%) – MYS(1)	70.05%	73.95%	3.90(2)
Dividend payout ratio	82.70%	87.49%	4.79(2)

(1) unless otherwise stated, the “prior year” refers to the full year ended 30 June 2010, noting that this prior period included only ten months contribution from Tasmanian Perpetual Trustees following the merger in September 2009. **Home Lending National System Growth data source is RBA, Lending and Credit aggregates 29 July 2011 Household Deposit National System Growth data source is APRA - Licensed banks, 29 July 2011.

(2) Percentage point movement.

Net interest margin (NIM) over the past 12 months was relatively stable compared with the volatilities experienced in the previous years. The first six months was negatively impacted by higher deposit rates in an aggressive funding market with the

second six months impacted positively by the increase to the official cash rate in November, combined with strong loan growth as well as a noticeable softening in retail term funding markets.

DIVIDEND

Directors have today announced a fully franked final dividend of 15.0 cents per share. This is consistent with the Board’s policy of generally paying between 70 and 90 percent of profits after tax as dividends to shareholders.

Record date for entitlement to the final dividend will be 9 September 2011 and the dividend will be payable on 7 October 2011. This follows the recent 2011 interim dividend of 12 cents per share that was paid to shareholders on 31 March this year, bringing the full year dividend to 27.0 cents per share.

SUBSEQUENT EVENTS

In the opinion of the Directors, there has not arisen in the period between the end of the financial year and the date of this statement, any material item, transactions or event that is likely to significantly affect the operations of the consolidated entity other than, following the close of ASX trading on 30 August 2011, the Company resolved to participate in a Scheme of Arrangement with The Rock Building Society Limited.

Full details of the proposal and narrative are available on the ASX Announcements Platform.

OUTLOOK

The Directors consider that FY2012, being the third year following the merger, will deliver many of the remaining synergy benefits, in excess of those originally envisaged at the time of the merger. Both MSF and TPT will continue to benefit from the lower staffing levels and property cost structures during the years ahead.

On the outlook for the 2012 financial year, Mr Gilbert said: “These cost synergies will, to some extent, be offset by what appears to be softening demand as a result of the decline in the global and national economic outlook. Nonetheless, we maintain a positive growth outlook in the expectation of continuing to advance our strategic initiatives and find new markets for our products and services, both in Tasmania and beyond.”

MyState Limited’s Annual General Meeting is to be held at 10.30 am on Tuesday 25 October 2011 at the Hotel Grand Chancellor in Launceston.

ENDS

About MyState Limited

MyState Limited is a non-operating holding company and is a major Tasmanian based listed diversified financial group formed in September 2009 to effect the merger of MyState Financial (MSF), an authorised deposit-taking institution, and Tasmanian Perpetual Trustees (TPT), a trustee and wealth management company.

Both MyState Limited and MSF are regulated by APRA. MyState Limited was enabled under Tasmanian legislation to own an authorised trustee company. TPT continues to be regulated by APRA as a registered superannuation entity (RSE). Both MSF and TPT hold Australian Financial Services Licences issued by ASIC.

Registered Office 23 Paterson Street Launceston 7250

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Media Enquiries

Mark Thomas, CPR Communications, 0422 006 732

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