IMB Bank has grown and remains financially strong with an increase in assets despite a small drop in profits.
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Chief executive Robert Ryan said Illawarra’s home grown bank remains well positioned for the future.
Mr Ryan said the IMB was performing well in a challenging operating environment.
He said the market continued to see historically low interest rates and strong competition for loans and deposits.
But IMB Bank’s total assets managed to increase by 9.4 per cent on the previous year to $5.7 billion and Group operating profit after tax was $27.5 million.
Performance improved across a range financial and corporate metrics with growth in membership, record loan approval volumes, growth in deposits, and strong capital and liquidity levels.
Mr Ryan said despite the profit being down 7 per cent on the previous year “we consider the result to be a good outcome given the low rate environment and the impact of a one-off increase in operating expenses associated with the successful migration of members of Sutherland Credit Union to IMB’s core banking system.”
The merger with Sutherland Credit Union was the achievement of a core strategic goal for IMB, and significant benefits from this merger are expected to be realised in the coming year.
“In addition to our organic growth objectives, conducting mergers with other mutuals that are committed to providing superior service and member benefits remains a strategic priority for IMB,” he said.
Loan approval levels for the year were $1.168 billion which was 15.5 per cent higher than the previous year.
Members’ deposits contined to grow in 2016-17, with total deposits increasing by $527 million to $4.8 billion.
IMB chairman Noel Cornish said the growth in deposits and loan writings wass a reflection of IMB’s attractive product range and competitive rates, as well as improvements made to processes and systems. “We will continue to invest in digital technologies that will provide our members with a great banking experience.”
Mr Cornish said the Board was pleased with the progress IMB has made on its growth strategies throughout 2016-2017, and considers it well placed to drive further growth through geographical expansion via new branches, additional mobile lenders, and the ongoing digitisation of the business.
He advised that the Board had declared a final fully franked final dividend for 2016-17 of 9 cents per share, taking the full year dividend to 18 cents per share. The dividend will be paid after the close of trading on Monday, 4 September 2017.
The dividend is in line with the Board’s previously stated Dividend Guideline.
The dividend paid represents a payout ratio of approximately 79 per cent based on shareholders’ interest in contributed funding.
IMB’s full results will be available on IMB’s website today and IMB’s Annual Report will be issued at the end of September.