IMB CEO Robert Ryan
IMB Bank grew its home loan book at more than twice the rate of system growth during the December half-year, but could not escape the margin compression that has hit the retail banking industry and suffered a big drop in earnings.
IMB’s loan portfolio grew to A$6.5 billion, an increase of 9.3 per cent compared with the previous corresponding period. System growth over the period was 4.1 per cent.
Loan approvals of $1.03 billion were a record for a six-month period.
IMB Bank chief executive Robert Ryan said the above-system growth was supported by investment in digital capabilities and new functionality on the lending platform, giving the bank the capability to meet a wider range of customer requirements through its digital channels.
Deposits grew 6.5 per cent to $6.9 billion.
The bank reported net interest income of $79.5 million – down 8.5 per cent from $86.9 million in the previous corresponding period.
The net interest margin was 2.05 per cent, compared with a margin of 2.4 per cent in 2022/23.
Net profit for the half was $12.3 million, a fall of 36 per cent from $19.2 million previously.
The impairment loss was $553,000, compared with a loss of $1.3 million in the previous corresponding period.
Operating expenses were up 4.6 per cent.
Ryan said the bank had not seen any significant movement in the level of arrears or need for hardship assistance. At December 31, 90-day home loan arrears were 20 basis points.