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.
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.”
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.
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