IMB Announces Solid Financial Results for 2022-2023

IMB Bank today announced its financial year results for the period ended 30 June 2023, reporting solid performance including a significant increase in net profit after tax, above-system loan growth and a lift in total deposits.

Chief Executive, Robert Ryan said “We are very pleased with the results achieved. The record level of loan approvals and improved customer acquisition is reflective of our commitment to digital transformation and providing our members with enhanced experiences that meet their changing needs.

We are doing this by providing fast, secure, and convenient banking options, maintaining fair pricing and returns for our borrowers, depositors and shareholdermembers and increasing our support in the communities we serve.”

Highlights for 2022-2023

• Recognition: IMB Bank opened the year well, receiving Canstar’s awards for both the Bank and Customer-Owned Bank with the Most Satisfied Customers – a first for any bank in Australia.
• Net profit after tax: net profit after tax of $36.3 million, an increase of 23.1% on FY22
• Expense to income ratio: 70.9% improved from 72.9% in FY22.
• Total assets: up by 6.3% to $7.5b.
• Record loan approvals: $1.6b was achieved, a significant uplift of 17.3%.
• Deposits: growth of 7.2% to $6.5b.
• Net interest margin: 2.40 percent against 2.11 percent for FY22, reflecting the changing rate environment.
• Liquidity: High Quality Liquid Assets of 17.7%,comfortably above required regulatory ratios.
• Capital: maintained at 15.8% with comfortable buffers above prescribed prudential limits. Having moved through the COVID-19 operating conditions, the Board can now revisit longer-term strategic capital options.
• Final Dividend: The Board has declared a final dividend of eleven (11) cents to be paid to registered shareholders at the close of trading on 6 September 2023. This brings the full year dividend to twenty (20) cents up from seventeen (17) cents for FY22, which, based on shareholders’ interest in the contributed funding of IMB Bank, represents a 79% payout ratio.
• ESG momentum: Our ESG strategy built around relevant UN Sustainable Development Goals has led to the preparation of IMB Bank’s inaugural Reconciliation Action Plan and the establishment of a climate emissions reduction plan to support IMB Bank’s transition to a carbon-neutral enterprise.
• Employer of Choice: We were proud to receive the Employer of Choice citation from the Workplace Gender Equality Agency for a second consecutive term, reflecting our commitment to commitment to providing meaningful development and career opportunities for the women and men who make IMB Bank so successful.
• Community Commitment: $750,000 invested in the IMB Community Foundation, supporting over fifty (50) impactful community projects.
• Board Transition: IMB farewelled our outgoing Board Chair, Noel Cornish, and Director Jan Swinhoe and welcomed two highly skilled directors, Christine Traquair and Brian Bissaker who will stand for re-appointment by members at the 2023 Annual General Meeting.

Mr Ryan continued, “Our solid results place IMB Bank in a position of strength as we move into the new financial year. We have excellent momentum on our growth strategies and are well positioned to support and guide our members through more uncertain economic conditions.”

“Our investment in innovative and resilient technology solutions is streamlining our operations and fostering growth as evidenced by our FY23 performance. IMB Bank’s digital mortgage platform has transformed our lending processes, giving borrowers the flexibility to select their preferred application channel and receive a conditional loan approval in under 20 minutes.”

“Another significant initiative saw us upgrade the technology that supports banking in our branches, empowering us to deliver seamless member service across the bank’s face to face and virtual channels. This is helping to ensure our branches remain productive and connected with our members as banking preferences change.”

“In our journey of digital evolution, we remain vigilant about cyber risk and the increasing complexity of fraud and scam activity targeting all financial institutions. We have continued to invest in our cyber risk management and fraud prevention capabilities. We are focused on educating our members about how they can protect themselves from these risks so that they can do their banking with confidence.

Looking ahead

“Our focus remains on being highly connected with our members through outstanding customer service, and ensuring our members and communities thrive," said Mr Ryan.

“While the operating environment presents some challenges, our credit quality is strong, and we have a long history of producing sustainable financial outcomes. For over 143 years, IMB Bank has been delivering on its purpose to help our members and the communities in which they live to be better off. In the current economic environment, this purpose is highly relevant and guides the decisions we make to deliver good outcomes for all IMB stakeholders.”

For more information contact the Company Secretary, Lauren Wise at cosec@imb.com.au

Date: 30 August 2023