Hobart-based financial services provider MyState Limited is on track to record bumper earnings in 2023 after posting an unaudited 41 per cent leap in bottom line profit for the September quarter.

In a market update on Wednesday the bank’s chief executive Brett Morgan said the bank’s loan book stood at A$7.4 billion at the end of September – up $471 million compared to the balance reported on 30 June.

Despite the downturn in the property market since May, MyState has continued to expand its mortgage business at 25 per cent – more than three times the system growth rate.

While that rapid growth has imposed new pressure on funding lines, the bank managed to also grow its retail deposit by 25 per cent in 2022.

Most of the loan book is currently funded by deposits.

The company recorded a first quarter net profit of $9.7 million as momentum continued in the home lending operation.

“Our first quarter results show that the investment in our growth strategy is starting to deliver improved financial outcomes,” Morgan said.

“Based on current conditions, over the next three years we are targeting to grow lending at more than two times system and continue to grow our customer deposit base so it represents more than 65 per cent of our funding needs. 

“We are also targeting cumulative earnings per share growth of 30 per cent, and cumulative return on equity growth of 30 per cent over the three years between now and financial year 2025.”

Investors reacted positively to the business update, with MyState’s ASX-listed scrip closing up 22 cents or 5.3 per cent to $4.35 on above-average volume.