Despite a highly competitive banking environment, IMB Bank, one of Australia’s largest mutual banks, has reported solid business results for the six months ended 31 December 2015.
IMB’s profit after tax for the six month period was $13.9 million. While the result was a decrease of 4% when compared to the previous corresponding period, the result was in line with expectations and reflects margin pressure and digital investment. Excluding the sale of head office, it is forecast that the full year 2016 result will be in line with that of the prior year.
“The result points to IMB’s strengths,” IMB’s CEO Robert Ryan said. “IMB’s capital ratio and liquidity ratios remain well above prudential requirements. In addition, IMB’s level of mortgage arrears continues to be well below national averages.”
“With above forecast growth in new lending and deposits in the first half of the year, the focus on margin management and cost control remains important for IMB in the current low interest rate environment."
Mr Ryan said IMB’s commitment to providing IMB members with high quality financial solutions was evidenced by further investment in the digital banking space including the implementation of online personal loan and deposit account application systems, an upgraded mobile banking application and the commencement of an upgrade to internet banking to be delivered in the first half of 2016.
“IMB Bank remains committed to providing members with a genuine alternative to the big banks which is reflected in our competitive loan rates, high level of customer care and investment in electronic banking solutions.” Mr Ryan said.
“We also remain committed to supporting the communities in which we operate with another $500,000 pledged to the IMB Community Foundation for distribution in 2016.”
IMB’s Chairman, Michael Cole, said despite the competitive challenges, IMB was well positioned to continue to grow and meet members’ needs.
During the period IMB successfully converted from a building society to a mutual bank and announced that it had been chosen by Sutherland Credit Union as a preferred merger partner with a merger anticipated to be completed around the close of FY 2016.
The Board has declared a fully franked dividend of 10 cents per share, in line with the dividend of the prior corresponding period. As previously advised, the Board’s dividend guideline is currently under review and once all relevant information is known, including in relation to future regulatory capital requirements, shareholder members will be advised. The dividend is payable on 28 February 2016 to shareholders registered at that date.
Date: 29 January 2016
For more information, please contact:
Louise Di Francesco
M: 0418 617 869