** Morningstar expects strong earnings growth for MyState MYS.AX in fiscal 2026 and 2027, with cost savings from the February 2025 acquisition of Auswide Bank underpinning the earnings growth forecasts

** However, the market is likely awaiting further progress on cost-out from merger integration, adds the investment research firm

** "One step toward achieving up to A$25 million ($16.67 million) in pretax cost savings was MyState handing back the Auswide banking license to the Australian Prudential Regulation Authority" - Morningstar

** Morningstar expects the financial services firm's poor cost/income ratio of 68% in fiscal 2025 to improve to 60% by fiscal 2030, mostly driven by merger cost savings

** While MYS lacks the scale of its much larger competitors, Morningstar says it could be a potential acquirer of even smaller lenders struggling to meet regulatory and compliance requirements, and the technology spending required to meet customer expectations

** YTD, stock up 1.8%

($1 = 1.4997 Australian dollars)

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))