Powered by MOMENTUM MEDIA
subscribe to our newsletter

IMB bolsters mortgage book amid ‘challenging environment’

The mutual bank has reported 7 per cent growth in its home lending portfolio and has bolstered its bottom line despite “challenging” market conditions.

Wollongong-based mutual IMB Bank has released its full-year results for the 2019 financial year (FY19), posting a net profit after tax of $31.7 million, up from $31.6 million in FY18.

The lender reported loan growth of 8 per cent, driven by 7 per cent growth in its mortgage book, 9 per cent growth in its personal loan portfolio, and 12 per cent growth in its commercial loan book.  

According to the Australian Prudential Regulation Authority’s (APRA) latest statistics, IMB’s resident loans and finance leases totalled $4.9 billion as at 31 July 2019.

The improvement in the bank’s underlying performance was slightly offset by a 3.3 per cent increase in IMB’s expenses, driven by increased investment, designed to support the lender’s digital initiatives.

Advertisement
Advertisement

The bank’s deposits also grew, rising by 5.5 per cent to $5.3 billion. 

IMB’s net interest margin remained stable at 2.12 per cent.

Reflecting on the result, IMB CEO Robert Ryan said he was pleased with the bank’s performance amid headwinds in the operating environment.  

“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.

IMB chairman Noel Cornish added: “The board is very satisfied that solid financial performance is providing a platform for the achievement of our organic and inorganic growth aspirations.”

PROMOTED CONTENT


In July, IMB announced that Hunter United Employee’s Credit Union proposed to merge with the bank, in a move that Mr Cornish expects would “expand [IMB’s] operations for the benefit of more customers in the Hunter region”.

The merger is subject to regulatory approval, with the merger to be effected by way of a transfer of business from Hunter United to IMB Bank in accordance with legislation administered by APRA.

The merger is expected to take effect in early 2020.

[Related: BNK reports multichannel settlement growth]

IMB bolsters mortgage book amid ‘challenging environment’
Growth
mortgagebusiness

Latest News

Politicians have traded blows while debating the repeal of responsible lending laws in the lower house, ahead of today’s Senate hearings. ...

The non-bank lender reported an 88 per cent rise in profit and a 14 per cent increase in its loan book over 1H21, despite a drop in the volu...

There was a 26 per cent rise in loans originated through the broker channel at the non-major bank as at 31 December 2020, according to its r...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: BOQ’s acquisition of ME Bank

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.