IMB announces financial results for 2023-2024

28 August 2024:  IMB Bank today released its financial results for the period ended 30 June 2024.

As its digital transformation strategy advances to meet members’ evolving needs, IMB Bank delivered stable financial performance for the 2023-2024 financial year, with notable improvement over the second half.

Highlights include the strengthening of the balance sheet through above system loan growth and a lift in total deposits, while making key investments in its long-term sustainability by digitising and simplifying processes to provide a better member experience.

As foreshadowed, heightened margin pressure in the first half of the year saw net profit after tax finish at $29.4m, 19% lower than FY23. An encouraging second half NPAT result was 39% higher than the interim result, with margin also improving to 2.19% by June 30.  

IMB Bank delivered the result against a challenging backdrop, marked by persistent inflation, elevated interest rates, and the continuing pressure of high funding costs.

IMB Bank Chief Executive Officer, Robert Ryan, said: “Our year-end results demonstrate IMB Bank’s resilience and strategic adaptability, as we strive to provide a simple and authentic banking experiences that help our members and communities to be better off.

“We have made solid progress in shaping IMB Bank to meet our purpose as a mutual bank in a rapidly changing market. Investments in digital infrastructure and our approach to customer service are enabling us to better respond to our members’ evolving needs while maintaining a strong focus on personalised service and connection with the communities we serve.

“Our above system growth in loans and total deposit growth reflects the trust our members have in us and our commitment to providing good outcomes for our members.  Credit quality remains very good, and while there has been a slight increase in longer age arrears and hardship requests over FY24, these are still well below industry benchmarks.

“Strong liquidity and capital adequacy levels have been maintained and with the outlook for IMB’s capital management requirements being stable, consideration of periodic buybacks is once again feasible. The Board will only consider completing a buyback if it will not unduly constrain IMB’s ability to pursue investment in strategic growth and provided all necessary regulatory approvals and rulings are obtained. As always, details about the structure of any buyback and how shareholders can choose to participate, will be announced ahead of any buyback process.

“Market competition is ever intensifying, and while we continue to enhance our digital capabilities, we remain committed to offering a full range of banking services. Together with exceptional customer service, what we believe can differentiate IMB Bank and provide a competitive advantage is offering members multiple ways to connect with us – whether that be digitally, by phone, or in person – empowering them to interact with us on their terms. Strong results from our recent member satisfaction survey are evidence of this.

"Looking ahead, despite stubborn inflation and persistent pressure around funding costs, the improvement in key financial performance measures over the second half of FY24 is encouraging and we enter the new financial year with positive signs that further growth in loans and deposits is achievable.

“As we have done for over 140 years, we strive to deliver a resilient operating model, provide the products and services our members value most and make decisions that prioritise their financial wellbeing and the prosperity of communities. This year, we celebrate the 25th anniversary of the IMB Community Foundation, which has funded $12m to over 1,000 community projects dedicated to fostering positive change and we look forward to being able to offer this support like this for another 25 years.”

Key Results for 2023-2024:

• Net profit after tax (NPAT): $29.4 million, down 19% on FY23. Encouraging second half NPAT result was $4.8 million (or 39%) higher than the interim result.  
• Total assets: $8.1bn, up 7.3% on the FY23 position.
• Loan approvals:  $1.47 billion was achieved, despite the cooler housing market and cautious business lending environment. IMB’s above system loan growth of 8% was achieved predominantly through its own channels.
• Total Deposits: Increased to $6.8 billion, up 4.9%.  
• Average net interest margin: 2.07%, down by 33bps, reflecting the ongoing pressure of high funding costs over the year, with some recovery over the second half to finish at 2.19% at 30 June.
• Capital:  Increased to 16.3%, up from 15.8% last year, reflecting prudent capital management.
• Final Dividend: 9.5 cents per share, bringing the full year dividend to 16.5 cents representing a fair outcome for shareholders given the reduction in NPAT. Payable to registered shareholders at the close of business on 4 September 2024.
• Continued investment in IMB Bank’s digital offering: including improved user experiences with the launch of IMB’s new website, imb.com.au, more convenient personal lending processes with digital signature capability, tools to better detect identity fraud and the launch of term deposits through online channels.
• High member satisfaction: IMB Bank’s most recent member satisfaction survey returned a satisfaction rating of 95% and a net promotor score of 56, some of the highest results to date.

For more information, please contact:   Karina Lamb | klamb@respublica.com.au | 0402 128 161

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