IMB Bank announces strong financial results for 2024-2025

IMB Bank today released its financial results for the period ended 30 June 2025.

In its 145th year of service to members, IMB Bank focused on supporting members’ financial needs, facilitating record lending approvals and maintaining high levels of satisfaction across digital and in-person banking. Strong performance and continued execution on strategic priorities delivered improvements to make banking simpler, more secure, and more accessible for members.

Performance Highlights (% change compared to FY24):

• Net profit after tax (NPAT): $38.1 million, up 30%.
• Total assets: $8.5bn, up 4.9%, including an increased contribution from small business lending (up by 15%).
• Loan approvals: $2.1 billion, representing IMB's highest-ever lending result supporting loan portfolio growth of 6.6% to $6.9 billion.
• Total Deposits: Increased 4.5% to $7.1 billion.
• Average net interest margin: Up by 25bps to 2.32% reflecting the strength of IMB’s direct distribution model.
• Sound loan quality:  90days+ arrears and bad debts remained below industry averages at 0.47% and $1.3million at year-end, respectively.
• Capital adequacy ratio: 15.7%, reflecting prudent capital management and enabling the Board to announce an off-market share buyback of up to $7.5 million of IMB ordinary shares via a voluntary tender process.
• Continued investment in IMB Bank's digital offering: including the introduction of biometric identification, the re-engineering of the loan fulfillment process, enhanced scam and fraud prevention tools, and initiatives that will help drive enhanced payments capabilities for members into the future.
• High member engagement: A 95% member satisfaction rating and a net promoter score significantly exceeding those of major banks.
• Continued momentum in ESG and community investment: A further $750,000 in IMB Community Foundation grants pledged to support community projects, along with good progress in preparing mandatory climate disclosures and commencing the work required to establish a Climate Transition Plan.  

Strategic Progress

IMB Bank Chief Executive Officer, Robert Ryan, said: "IMB recorded strong financial outcomes in FY25, evidenced by the profit and lending performance, and a strengthened balance sheet. These solid financial foundations allow us to deliver on our purpose to help members and their communities to be better off - assisting more members to purchase homes or grow their business, offering competitive rates and fair returns, and investing in product and service improvements that enhance the overall member experience.

“In FY25 we continued to digitise key processes, offering members more accessible, convenient and secure banking solutions. Our ability to engage with members across Australia through our digital channels represents a significant evolution from our beginnings in 1880, but our passion for providing dedicated and personalised member service over those 145 years has not waivered. By responding to changing member preferences, we are developing a leading banking experience that integrates digital platforms with in-person and telephone services, supporting member acquisition and maintaining consistently high member satisfaction levels."

“One of our most transformative initiatives this year was the re-design of our mortgage fulfillment processes, incorporating the introduction of biometric identification and digital execution of loan and mortgage documents which streamlines the lending journey for members and enhances the convenience we offer in an increasingly digital world,” said Mr Ryan.

“IMB is balancing a strong efficiency focus with the need to invest in strategically important capabilities. Throughout the year, we took steps to future-proof our payments ecosystem and as artificial intelligence (AI) continues to reshape our daily lives, we are exploring its deployment to unlock new value for our members and employees, with appropriate safeguards to ensure outcomes are in the best interests of our members and don’t detract from the personal touch that makes banking with IMB different.”

Capital Management

IMB Bank was well prepared for the changes in APRA's regulatory treatment to exclude the value of IMB ordinary shares from regulatory capital calculations from 1 January 2025. Despite this change, total capital adequacy ratio remained at a healthy 15.7% at the year end.

Mr Ryan said: "With greater certainty regarding our capital position, the Board is pleased to offer a voluntary off-market share buyback of up to $7.5 million of IMB ordinary shares via a tender process which will open on 16 September 2025. Performing periodic share buybacks forms part of our ongoing capital strategy because the Board believes that simplifying IMB’s mutual structure provides the best opportunity to deliver on our strategic goals.”

Reflecting the positive results achieved, the Board declared a final dividend of 11.5 cents which is payable to shareholders registered at the close of business on 3 September 2025.

FY26 Outlook

Mr Ryan said “Current forecasts indicate that the RBA will implement multiple cash rate reductions throughout the latter part of 2025 and into 2026 as inflation subsides. While this is expected to provide relief for borrowers, this may reduce housing affordability and will place downward pressure on net interest margins as deposit and lending rates adjust. In addition, while consumer spending is recovering, rising house prices and higher household debt levels could affect loan demand.

“Despite these market dynamics and uncertainty in the global economic environment, IMB Bank is well-positioned to achieve sustainable financial results while offering members a personalised banking experience that supports them in reaching their financial goals.”

For further information please contact:

James Tait    I    T: 0400 304 147    I    E: jtait@respublica.com.au

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