IMB Reports Six-Month Performance

Despite a challenging environment for financial institutions, IMB, one of Australia’s largest building societies, has again reported a solid result for the six months ended 31 December 2013.

IMB’s profit after tax for the period was $13.7 million, with the net interest margin maintained in a decreasing rate environment. Continued cost disciplines have resulted in operating expenses being well controlled and flat when compared to the prior period. After adjusting for land development activities, which are currently in exit phase, net profit after tax was only marginally different to last year.

“These results highlight IMB’s strengths,” Mr Ryan said. “IMB’s capital ratio has increased by 0.5% to 16.4% against the corresponding period last year and this along with its liquidity ratio remains well above prudential requirements. In addition, IMB’s level of mortgage arrears continue to be well below national averages for residential loan portfolios across all categories. The focus on margin management and cost control will continue to be important for IMB in the current environment."

Mr Ryan said IMB’s commitment to members was evidenced by its continued high customer satisfaction results and by having more 5 star variable rate home loan products than any other Australian financial institution as rated by Canstar.

IMB’s Chairman, Michael Cole, said the current competitive financial market conditions would continue to affect trading outcomes for the remainder of the financial year. However, despite the challenges, IMB was well positioned to continue to grow and meet members’ needs.

During the period, IMB successfully completed its second share buyback in what is a series of buybacks that IMB expects to undertake over the medium term. 2.1 million shares were successfully acquired through the voluntary share tender mechanism.

The Board, in line with the result and the previous corresponding period, has declared a fully franked dividend of 10 cents per share. The overall dividend level and guideline will continue to be reviewed in the light of profit levels and further analysis on Contributed Funding. The dividend is payable on 27 February 2014 to shareholders registered at that date.

Wednesday 29 January 2014

For more information, please contact:

Louise Di Francesco 

Verve Communications

M: 0418 617 869

E: louised@vervecommunications.com.au