5 February 2025: IMB Bank today announced its interim financial results for the half year ended 31 December 2024.
IMB Bank’s Chief Executive Officer, Robert Ryan, said: “We are pleased to have delivered improved performance as we execute on our strategies centred on digital transformation and continuous improvement of the member experience”.
“We are conscious that the operating environment remains challenging, with ongoing cost of living pressures affecting many households and businesses. These solid interim results see us well placed to continue to meet the financial needs of our members by offering competitive products and services.
“Net profit after tax increased by 46% to $17.9m on the previous corresponding period, with our average interest margin strengthening to 2.27% up from 2.05% for the previous interim period, placing us in a good position to achieve positive performance in the second half of FY25.
"The quality of our loan book is sound, and we are closely monitoring hardship indicators. While we have observed a modest increase in arrears, these remain well below industry benchmarks and our loan impairment expense reduced slightly to $0.5m.
“Total deposits increased by 1.4% to $6.9 billion and the loan portfolio remained stable at $6.5 billion. Total assets increased to $8.3 billion, up 2.3% from June 2024. We were also encouraged by the improvement in the expense-to-income ratio to 73.4% reflecting our efforts to manage expenses and enhance our operational efficiency.
“We are committed to continuously enhancing the security, convenience and functionality of our digital channels backed by the high levels of personal service our members expect. This commitment is enabling us to bring to market experiences that provide fast conditional approval, highly secure biometric identity verification, and the ability to receive and execute loan documentation electronically, all with the support of a skilled IMB lender throughout the process.
"Our strategic ambitions are supported by a strong financial foundation. As of 31 December 2024, high quality liquid assets were 19.4% (up 90bps) and the total capital adequacy ratio increased to 16.3%, up 130bps compared to the same period last year.
“As anticipated, from 1 January 2025, IMB ordinary shares ceased to have regulatory capital value, and we have maintained capital levels well above regulatory requirements in preparation for this change. With greater certainty around our capital outlook, the Board can now give consideration to periodic off-market share buybacks as part of IMB’s broader capital management plans.”
"Looking ahead, our underlying business momentum remains positive and economic conditions are likely to support a moderate level of growth, with interest rate cuts anticipated later in FY25.
“We are entering a period of significant regulatory change, particularly around operational resilience, scam prevention, and cyber security. While we welcome these reforms, they will require ongoing investment in our systems and capabilities”.
"We remain focused on delivering on our strategy to enhance the member experience, increase productivity, and support long-term growth. Our underlying financial health metrics and balanced business model provide a solid foundation to navigate the evolving operating environment while continuing to serve the best interests of our members and their communities," Mr Ryan said.
The Board has declared an interim dividend of 9 cents per share, fully franked, representing a 28.6% increase from the previous corresponding period. The dividend will be paid after the close of trading on 12 February 2025 to shareholders registered at that date.
For more information, please contact:
Karina Lamb
T: +61 402 128 161
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