IMB Bank’s net profit after tax grew 15 per cent to $31.6 million in 2017-2018 and total assets climbed to $5.9 billion.
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Chief executive Robert Ryan and chairman Noel Cornish are delighted with the result and what it means for staff and members.
The financial year also saw a 4.1 per cent increase in IMB’s deposit book and record loan approvals in excess of $1.2 billion.
There was solid growth in the residential loan portfolio of 5.3 per cent as well as a 9.2 per cent rise in the business loan portfolio.
“With a significant level of attention being directed at the Australian financial services industry as the Royal Commission hearings progress, the Board is very pleased that IMB attracted more than 12,000 new members in the 2017-2018 year,” Mr Ryan said.
Mr Ryan said IMB’s overall performance was strong with improvement in many key metrics. “The average interest margin moved from 2.03 per cent in 2016/17 to 2.13 per cent. And while total expenses increased by 4.5 per cent on the previous year, IMB’s efficiency ratio reduced to 66.3 per cent to remain one of the lowest”.
Mr Ryan said the bad and doubtful debts expense was $1.2 million. It was slightly higher than the previous year but continued to reflect the quality of IMB’s loan book across both the secured and unsecured loan portfolios.
The Group’s capital adequacy ratio at 30 June was 16.1 per cent. It has been managed to enable ongoing share buybacks and a balanced approach to investment in initiatives which support IMB’s competitive position.
Mr Ryan said the 2017-2018 year had delivered a number of highlights for the Illawarra born bank that is planning more branches in Sydney and the Hunter.
“On top of our improved financial performance, IMB Bank was awarded Mutual of the Year at Rfi Group’s Australian Retail Banking Awards reflecting the high quality of our staff, our products, our service levels and our commitment to the community,” he said.
Chairman Noel Cornish said the last financial year had seen good progress made on strategic initiatives for IMB Bank.
“Our organic growth strategies are delivering results, with increasing volumes experienced through digital channels and via our mobile lending team which has grown in Sydney, the Central Coast and Hunter Valley,” Mr Cornish said.
“We are also continuing to invest in digital services, with IMB Bank being among the first financial institutions in Australia to launch on the New Payments Platform, providing members with real time payments capabilities.”
The board has declared a final dividend of 10 cents per share which will be paid to registered shareholders at the close of trading on September 4, 2018.
The dividend is likely to be within an effective payout ratio range of 65 per cent to 80 per cent based on shareholders’ interest in contributed funding.
Greg Ellis
Almost four decades in electronic, print and digital media. A writer, presenter, emcee, photographer and videographer with degrees in business management, marketing and human resources and tertiary qualifications in photography.
Almost four decades in electronic, print and digital media. A writer, presenter, emcee, photographer and videographer with degrees in business management, marketing and human resources and tertiary qualifications in photography.
