IMB Bank reports interim results for the period to 31 December 2022

January 31, 2023

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IMB Bank is pleased to announce its results for the half year to 31 December 2022, having achieved improved underlying financial performance, and continued execution of strategic initiatives that are aimed at improving services for our members and supporting future growth.

IMB Bank’s Chief Executive, Robert Ryan said “Net profit after tax of $19.2M was up 33% against the previous interim result, together with a good outcome in the average interest margin which was 2.49% against 2.11% for the corresponding prior half year result.

“We are working hard to deliver sustainable financial performance and balanced outcomes for all IMB Bank members. We are particularly pleased that the solid interim financial result is complemented by independent recognition of the way we do business. In July, IMB Bank received both of Canstar’s Most Satisfied Customers – Bank and Most Satisfied Customers – Customer Owned Bank awards, which is an historic achievement.

“We remain firmly focused on delivering on our organic growth strategies including the digitisation of key member experiences and the expansion of IMB’s business banking offer for small to medium enterprises. We have continued to allow for investment in our digital banking capabilities, and the maintenance of strong system resilience and cyber security which is vital to growing our member base. Expenses are being closely managed with the cost to income ratio being just under 70%.

“Total Deposits increased by 4.4% and loan approvals reached $744M against $690M for the corresponding half year to December 2021, and Total Assets increased by 3.1% to $7.3Bn.

“IMB’s loan portfolios are currently showing good resilience with arrears levels being well below national averages reflecting IMB’s prudent underwriting policies, strong borrower savings and low unemployment levels. However, we are highly aware that the full effect of the rising interest rate environment has not yet been seen and is likely to present challenges for some borrowers. In this context, provisioning increased by $1.1M to $6.7M.”

“The Board and management continue to ensure IMB is well positioned for 1 January 2025 when IMB’s ordinary shares will no longer be eligible for inclusion in regulatory capital calculations. Capital adequacy is strong at 15.3% and APRA’s new capital framework which is effective from 1 January 2023 will result in a further increase to regulatory capital. In addition, following member approval of updates to IMB’s Constitution at the 2022 AGM with respect to the terms for issuing preference shares, IMB now has more options for raising regulatory capital.”

Mr. Ryan continued “The improved interim financial performance is pleasing, and the Board has declared an interim dividend of nine (9) cents per share, fully franked. The dividend will be paid after the close of trading on 27 February 2023 to IMB Bank shareholders registered at that date.

“There is ongoing economic uncertainty we move into the second half which stems from elevated inflation, rising interest rates, instability in the global economy, and supply chain and labour disruptions. Cost-of-living pressures, the weakening in housing market prices and strong competition from the major banks, will place pressure on balance sheet growth and challenge margins.

Despite this, IMB is well positioned to deliver solid performance for FY23, and we are committed to improving the customer experience and leveraging the investments we have made in our digital assets which enable us to grow and improve productivity across our operations.”

Dated: 31 January 2023

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