MYS is a steadily growing regional bank. Its history since...

MYS is a steadily growing regional bank. Its history since taking out a bank licence shows steady growth based on sound lending practices as it grows from just a Tassie based bank to having fingers on the mainland giving it greater diversity and customer base. Besides its steady growth and good yield there are other factors which I find quite attractive in a lending business. Their honesty in reporting is quite refreshing - they list the negatives not just the positives. They are nimble and adaptive as shown by their proactive customer contact to retain the borrower as old fixed mortgage rates expire instead of just letting them float off to refinance elsewhere. They have had quite steady rises in earnings per share and their credit quality is very comforting when they are judged to have arrears over 30 and 90 days up to 50% less than that of their peers. Despite the lower arrears they are well provisioned. Like most regional banks they have organic internal funds growth which means far less reliance on external volatility in money markets. This gives them more control over their rates and margins with customer deposits giving >70% of their funding needs. From a cost point of view they have just finished improving their digital systems and the costs are being runoff by amortising the expense over subsequent years which means that there should be ever decreasing reductions in their cost base in the next few years (eg last year >$1m). Its diversity is increased as a banker in that it is one of few that offers both a wealth and trustee division. Despite the current gloomy forecasts and in some cases lack of forecasting MYS is giving guidance fro FY24 as being at least equal to FY23 which is by inference a steady investment and a decent fully franked yield. I have been a holder from the early days when they were a Tassie show only and did not hold a banking licence. I have watched the SP rise and fall but my judgement has always been based on the reports and accounts - so you might say I am a strict fundamentalist. There you are Noomxx