IMB Reports Solid 6 Month Performance to December 2014

January 28, 2015

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Despite a highly competitive banking environment, IMB, one of Australia’s largest building societies, has reported solid business results for the six months ended 31 December 2014.

IMB’s profit after tax for the period was $14.5 million, an increase of 6% over the previous corresponding period. Management of the funding base and asset book were key to this result, increasing average interest margin to 2.07%.

“The results point to IMB’s strengths,” IMB’s CEO Robert Ryan said. “IMB’s capital ratio at 16.2%, and its liquidity ratio remain well above prudential requirements. In addition, IMB’s level of mortgage arrears continues to be well below national averages. The focus on margin management and cost control will continue to be important for IMB in the current low interest rate, highly competitive environment."

Mr Ryan said IMB’s commitment to members was evidenced by its high customer satisfaction level of 96%*, the recent opening of a new branch at Oran Park,  and further development in the online and mobile banking space including the implementation of an online personal loan application system and a new mobile banking app for Apple and Android phones.

IMB’s Chairman, Michael Cole, said the current competitive financial market conditions would continue to have an impact over the remainder of the financial year. However, despite the challenges, IMB was well positioned to continue to grow and meet members’ needs as it enters its 135th year of operation.

The Board has declared a fully franked dividend of 10 cents per share. This is in line with the dividend of the prior corresponding period, and the previously advised dividend guideline to maintain overall dividend levels provided capital adequacy levels are above 14% and profits are stable or increasing. The dividend is payable on 27 February 2015 to shareholders registered at that date. The Board has also announced an off-market share buyback under which IMB intends to buy back up to $16 million of its ordinary shares on issue. Shareholders should refer to the separate announcement on the Buyback for further details.

*Discovery Research, Sept 2014

Wednesday 28 January 2015

For more information, please contact:

Louise Di Francesco

Verve Communications

M: 0418 617 869


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