IMB Bank delivers strong financial results for 2017-2018

IMB Bank today announces that the 2017-2018 net profit after tax increased by 15% to $31.6 million, and total assets reached $5.9 billion. 

Chief Executive, Robert Ryan said:

“As well as seeing an increase of 4.1% in our deposit book, the bank achieved record loan approvals in excess of $1.2 billion.” 

IMB recorded solid growth in the residential loan portfolio of 5.3% and 9.2% in the business loan portfolio.  Mr Ryan said:

“With a significant level of attention being directed at the Australian financial services industry as the Royal Commission hearings progress, the Board is very pleased that IMB attracted over 12,000 new members in the 2017-2018 year.  We believe this is an opportune time for customers to consider the value in a mutual banking relationship.” 

IMB’s overall performance was strong with improvement in many key metrics. Mr Ryan commented that:

“The average interest margin moved from 2.03% in 2016/17 to 2.13% and while total expenses increased by 4.5% on the previous year, IMB’s efficiency ratio reduced to 66.3%, remaining one of the lowest amongst our mutual ADI peer set.”  

Bad and doubtful debts expense was $1.2 million, and although slightly higher than the previous year, this result continues to reflect the quality of IMB’s loan book across both the secured and unsecured loan portfolios.  The Group’s capital adequacy ratio at 30 June was 16.1% and has been managed to enable ongoing share buybacks and a balanced approach to investment in initiatives which support IMB’s competitive position.  The 2017-2018 year has delivered a number of highlights for the Bank, with Mr Ryan stating:

“On top of our improved financial performance, IMB Bank was awarded Mutual of the Year at Rfi Group’s Australian Retail Banking Awards which reflects the high quality of our staff, our products, our service levels and our commitment to the community”.

IMB Chairman, Noel Cornish AM, highlighted the progress that the bank made on its strategic initiatives, saying:

“Our organic growth strategies are delivering results, with increasing volumes experienced through digital channels and via our mobile lending team which has grown in Sydney, the Central Coast and Hunter Valley. We are also continuing to invest in digital services, with IMB Bank being among the first financial institutions in Australia to launch on the New Payments Platform, providing members with real time payments capabilities.”

Mr Cornish confirmed that the Board has declared a final dividend of 10  cents per share which will be paid to registered shareholders at the close of trading on 4 September 2018. He noted that the Board considers a range of matters when setting dividends including IMB’s Dividend Guideline, the capital treatment of the ordinary shares, the profit for the financial year, and the capital and strategic needs of the business over the medium term. The Board has previously communicated that the dividend is likely to be within an effective payout ratio range of 65% to 80% based on shareholders’ interest in contributed funding. The full year dividend paid represents a payout ratio of approximately 76.2% of shareholders’ interest in contributed funding.   

FURTHER INFORMATION:

Louise Di Francesco

M: 0418 617 869

Date: 29 August 2018