IMB Bank reports larger profit for the 2018/19 financial year.
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Chief executive Robert Ryan said during the 12 months IMB Bank enjoyed strong lending growth and sustained earnings against a backdrop of unprecedented low interest rates, a subdued housing market and intense competition.
The Wollongong-based mutual bank, with a network of 48 outlets across Illawarra, NSW South Coast, ACT, Sydney and Melbourne reported a net profit after tax of $31.7 million for the year. The result was slightly above the $31.6 million net profit it reported in 2018.
Other results from the financial year:
- Total loan growth at the end of June 2019 was 8.0 per cent.
- The bank's residential loan portfolio grew by more than 7.0 per cent.
- IMB Bank's personal loan portfolio grew by 9.0 per cent.
- Commercial lending increased by more than 12 per cent during the 2019 financial year.
- Deposits grew 5.5 per cent to $5.3 billion.
- Total expenses increased only 3.3 per cent despite significant new investment primarily supporting the implementation of digital initiatives to improve member experience, member funds safety and optimal lending operations.
Mr Ryan said the strong performance emphasised the ability of the bank to grow and deliver for customers and the community in difficult operating conditions.
"I am especially pleased that the bank's deposit and loan portfolios have grown strongly in a challenging environment and that we have delivered significant initiatives improving customer experience and sustained our community support while maintaining robust business metrics," he said.
"This, together with our customer satisfaction rating of 95% and increase in our customer net promoter score from 38 in 2015 to an impressive 51 this year, indicates IMB's 140-year-old customer-owned business model is resonating with new and existing customers at a time large banks are being held to account for failing to meet customer expectations".
Mr Ryan said IMB Bank continued its expansion into Western Sydney and Northern NSW during the year.
It opened a new branch in Rouse Hill in Sydney's north-west and launched new mobile lending and business banking capability in Newcastle and the Hunter.
Following the launch of mobile lending operations in the Hunter in 2018, IMB announced its plan to merge with Hunter United Employee's Credit Union.
The merger is expected to take effect in early 2020.
In response to increasing global cyber risks, IMB also implemented a new digital fraud detection system during the last 15 months to detect malware on customer devices and changes in usage patterns to guard against fraud.
Read more:
- All the photos from the IMB Bank Community Foundation grant presentation on Monday morning
- Growing IMB Bank plans to create more new jobs in Wollongong when its new national headquarters opens in Burelli St
- IMB Bank Community Foundation celebrates 20 years of offering money for community projects
- Size and agility allows IMB Bank to grow digitally online and physically with new branches in Sydney and the Hunter
- All the photos from the IMB Community Foundation annual funding recipient announcements at the Novotel: PHOTOS
