The IMB Building Society has reported an operating profit after tax of $28.5million for the 2012-13 financial year.
Chief executive Robert Ryan said the solid result was achieved despite some challenging market conditions, low consumer sentiment and strong competition for retail funds and lending.
Mr Ryan said it was also in line with the board and management’s expectations.
He said despite a slight decrease in net profit after tax, the underlying fundamentals of the business remained strong.
‘‘The balance sheet has grown during the last 12 months predominantly through growth in deposit funds of $154million, which is pleasing in such a competitive market,” Mr Ryan said. “Loan approvals, at $620million, were lower than the previous year as a result of the subdued lending market.
‘‘Our bad debts expense for the year was $0.9million, less than half of last year, reflecting the exceptional quality of IMB’s loan book across both the secured and unsecured loan portfolios.’’
IMB chairman Michael Cole said the board was satisfied with the result, which was also affected by additional costs associated with the higher capital target.