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2010 /

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Despite difficult trading conditions, IMB delivered strong results for the year ending June 2010, with operating profit after tax of $29.1 million.

 This was an increase of $6.2 million or 27.1% over the previous year.

 Chief Executive, Robert Ryan said IMB’s performance was driven by improved net interest margins, increased loan writings and a strong retail deposit base.

 “While the effects of volatile global financial markets continued to impact during the year, IMB’s strategies for growth during the past three years and the strength and experience of our board and senior management team have seen us through these difficult trading times,” he said.

 “It is testament to IMB’s strong and secure financial position that we have been able to improve our margin and grow our balance sheet in a volatile market.”

 “Our residential loan book continues to perform among the best in the Australian banking sector, a view confirmed in the current quarterly review by QBE Mortgage Insurance Ltd. Credit quality remains exceptional across IMB’s secured and unsecured loan portfolios.

 Deposit funding grew by $204 million or 6.5%, to close at $3.4 billion. Wholesale funding grew by $108 million or 14.1% over the period. Additionally, IMB successfully launched a $250 million RMBS issue in March.

 “While the pressures of 2008-2009 have abated somewhat, increased funding costs and increased competition for retail funding continues to affect interest margins,” Mr Ryan said.

 Loan approval levels for the year were $724.9 million, 28.3% higher than the previous year.

 IMB’s chairman, Mr Michael Cole, said that in its 130th year, IMB remained a secure mutual financial institution providing a real alternative to the major banks. “IMB has a strong and diversified balance sheet and it maintained strong liquidity and capital levels during the 12 months,”

 Mr Cole said that IMB’s growth strategy and branch expansion would continue in the next year and he remained optimistic about IMB’s future financial performance.

 He said IMB was disappointed the proposed merger with the Community Alliance Credit Union did not proceed last year.

 “In an environment of continually changing regulatory requirements and challenging market conditions, mergers with other financial institutions present an opportunity to create a stronger banking alternative providing increased benefits to members,” he said.

 “IMB is committed to achieving its vision of being the alternative to banks and to giving our members better service, products and overall Better Value Banking.”

 IMB was named Money Magazine’s Building Society of the Year for 2010, for the second consecutive time, and the fourth time IMB has received this prestigious award in six years. IMB’s member satisfaction levels have remained high and at 97% is well above the satisfaction levels of the major banks.

 The Board declared a final fully franked dividend for 2009-10 of 19.0 cents per share, taking the full year dividend to 29.0 cents. The dividend will be paid on Friday, 03 September 2010.

 IMB’s full results are available on IMB’s website and IMB’s Annual Report will be issued at the end of September.

 

 For more information, please contact:

Louise Di Francesco

Verve Communications

M: 0418 617 869

E: louised@vervecommunications.com.au

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Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 138 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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