Shares in finance group MyState have taken a tumble after first-half profit slipped nine per cent to $14.4 million on a shrinking net interest margin.
MyState's operating revenue for the six months to December 31 fell 3.1 per cent to $60.7 million, with the launch of a new digital platform driving costs 1.4 per cent higher.
The company's loan book growth accelerated, lifting 10.3 per cent to $4.6 billion, despite what it said were competitive conditions for owner-occupied home loans and deposit funding.
MyState said a weaker net interest margin - the difference between the interest a bank makes on loans and the interest it pays on funds to finance them - was the chief driver of the first-half profit slide
The lender's NIM fell by 0.21 percentage points to 1.89 per cent.
MyState forecast full year net profit of around $30 million, or 3 to 5 per cent below FY18, on its recent home loan repricing initiative, as well as volume and cost momentum.
The company declared an interim dividend of 14.25 cents per share, fully franked, consistent with a year ago.
Shares in the company were trading 4.06 per cent lower at 1550 AEDT on Friday.
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