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Over the 2016-2017 period, IMB Bank has grown and remains financially strong, relevant and well positioned for the future despite a challenging operating environment.

In a market that continues to see historically low interest rates and strong competition for loans and deposits, IMB Bank’s total assets increased by 9.4% on the previous year to $5.7 billion and Group operating profit after tax was $27.5 million. Performance improved across a range financial and corporate metrics with growth in membership, record loan approval volumes, growth in deposits, and strong capital and liquidity levels.

IMB Bank Chief Executive, Robert Ryan explained that “Despite the profit being down 7% on the previous year, we consider the result to be a good outcome given the low rate environment and the impact of a one-off increase in operating expenses associated with the successful migration of members of Sutherland Credit Union to IMB’s core banking system”.

The merger with Sutherland Credit Union was the achievement of a core strategic goal for IMB, and more significant benefits from this merger are expected to be realised in the coming year.

Mr Ryan said “In addition to our organic growth objectives, conducting mergers with other mutuals that are committed to providing superior service and member benefits remains a strategic priority for IMB.”

Loan approval levels for the year were $1.168 billion, being 15.5% higher than the previous year and members’ deposits grew again in 2016/17, with total deposits increasing by $527 million to $4.8 billion.

IMB Chairman, Noel Cornish commented “The growth in deposits and loan writings is a reflection of our attractive product range and competitive rates, as well as improvements we have made to our processes and systems. We will continue to invest in digital technologies that will provide our members with a great banking experience.”

Mr Cornish said the Board was pleased with the progress IMB has made on its growth strategies throughout 2016-2017, and considers it well placed to drive further growth through geographical expansion via new branches, additional mobile lenders, and the ongoing digitisation of the business.

Mr Cornish advised that the Board had declared a final fully franked final dividend for 2016-17 of 9 cents per share, taking the full year dividend to 18 cents per share. The dividend will be paid after the close of trading on Monday, 4 September 2017.

This dividend is in line with the Board’s previously stated Dividend Guideline. The dividend paid represents a payout ratio of approximately 79% based on shareholders’ interest in contributed funding.

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

 

FURTHER INFORMATION:

Louise Di Francesco

M: 0418 617 869

 

Date: 23 August 2017

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Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 138 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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