IMB DELIVERS SOLID END-OF-YEAR RESULTS

Despite challenging trading conditions, IMB delivered solid results for the year ending June 2011, with operating profit after tax of $31.0 million. This is an increase of $1.9 million or 6.7% over the previous year. Core profit increased by $2.4 million or 7.8%.

Return on equity was 13% and the efficiency ratio improved from 60.1% to 58.7%.

Chief Executive, Robert Ryan said IMB’s performance was driven by increased loan writings, management of the balance sheet composition and a strong retail deposit base.

“Our residential loan book continues to perform among the best in the Australian banking sector, a view confirmed in the current quarterly review by QBE Mortgage Insurance Ltd. Credit quality remains exceptional across IMB’s secured and unsecured loan portfolios.” Mr Ryan said.

Lending approvals for the year increased by 14% over the previous year and member satisfaction at 96% remains well ahead of the major banks.

IMB’s Chairman, Michael Cole, said that IMB’s growth strategy and branch expansion would continue in the next year and he remained optimistic about IMB’s future financial performance.

"IMB is committed to achieving its vision of being the alternative to banks and to giving our members better service and better products.”

The Board declared a final fully franked dividend for 2010-11 of 15.0 cents per share, taking the full year dividend to 25.0 cents. The dividend will be paid on Thursday, 08 September 2011.

In declaring the final dividend, the Chairman advised that IMB’s Board had regard to the increased capital requirements of the impending Basel III regime, the ongoing volatility in capital markets and uncertainty in the economic environment.

Mr Cole stated that in its 132^nd year, IMB remained a strong and secure mutual financial institution.

“The operating environment for IMB remains satisfactory. IMB’s strategy continues to deliver a sound risk return outcome,” Mr Cole said.

IMB’s full results and detailed commentary will be available on IMB’s website today and IMB’s Annual Report will be issued at the end of September.