IMB Ltd Annual General Meeting 2010

Transcription

1 IMB Ltd Annual General Meeting 2010

2 Chairman s Address Michael Cole

3 Celebrating 130 Years Assets $4.5 billion 41 branches 180,000 Members IMB Community Foundation - total grants of $5.2 million in support of 254 projects since 1999 Supporting the communities in which IMB Members live & work

4 Returns Balanced with Risk Strong financial results 27.1% increase in profit Improved net interest margin Efficiency ratio improved Return on assets increased to 0.65% Strong liquidity Maintained strong asset quality and low level of credit losses

5 Member Questions Removal of Disclosures from the Financial Statements/ Annual Report The Payout Ratio / Level of Dividend Distribution, Franking Credits and the DRP Mergers and the Wind-up Rule Mutual Member Equity Contributions and Entitlements Capital Structure of IMB (ordinary share buy back)

6 Member Questions Stakeholder Engagement Director Remuneration and Age Disclosure New Branch Location Bad and Doubtful Debt Expense IMB Product and Services

7 Celebrating 130 years

8 Chief Executive s Address Robert Ryan

9 Delivering Strategy Diversifying IMB s deposit base Retail deposits now 56%, up more than 20% from 2007 Amended distribution model for residential loans Direct loan writings $623 million as compared to $470 million in 2007 Margin improved from 1.63% to 2.11% Expanded distribution New branches at Cronulla and Sylvania with Narellan loan centre converted to a full service branch New branch locations under review Business Banking expanded to Sydney and the South Coast

10 Delivering Products Product initiatives Everyday Unlimited account DIY Superannuation account Business Cash Management Account Bank Bill linked loan First Home Savers Account Personal loan for New Cars Kick Start package

11 Delivering Better Value Banking Low fee alternative 80% of Members do not pay transaction fees on their accounts Website refresh Internet banking upgraded including 2 factor authentication Visa chip cards improving card security National ATM network Consistently met 48 hour loan turn around

12 Key Results Solid result reflecting strength and stability Profit: $29.1 million after tax Total assets: $4.7 billion Deposits: $3.4 billion Loan approvals: $725 million Efficiency Ratio: 60.1% ROE: 13.9% Dividends: 29 cents per share Up $6.2M or 27.1% Normalised profit up 33.0% from 2009 Increase of $252M or 5.7% Grew by $204M or 6.5% Up $160M or 28.3% Improved from 64.4 % Up from 12.0% 23% increase on 2009 dividend

13 2010 Highlights Celebrating 130 years 11,000 new Members Awarded "Money Magazine Building Society of the Year for 2010 Winner of the Illawarra Business Chamber s award for the Property & Finance our third award in succession, as well as the award for Workplace Safety and OH&S IMB named exclusive provider for the ACT Housing Shared Equity Scheme Member satisfaction 97%

14 Operating Profit after Tax $000 35,000 30,000 25,000 20,000 15,000 10,000 17,628 19,959 21,579 22,850 33% increase, excluding 2010 net land write down 29,071 $30.385M OPAT excluding $1.314M net write down of IMB s land inventory 5,

15 Interest Margin $ million 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% % 1.63% 1.65% 1.75% 2.11% Interest margin (left scale) Net interest income (right scale)

16 Non Interest Income $ million $million Recurring Other Significant Items

17 Non Interest Expenses $ million $ million Recurring Other significant items (excl. equity investments)

18 Improved Efficiency Ratio 75.0% 70.0% 65.0% 69.4% 67.5% 65.7% 64.4% 60.0% 60.1% 55.0%

19 Total Assets $ billion $ billion Loans Liquids Other assets

20 Loan Approvals $ million 1, ,200 $ million 1, Since June 2008 ceased to use brokers to source residential loans Home loans Other loans

21 Strong retail deposit growth 4,000 $ million 3,500 3,000 2,500 2, , , , , ,000 1,500 1,

22 Asset quality remains strong 0.30% 0.25% % of loans 0.20% 0.15% 0.10% 0.05% 0.00% 0.04% 0.17% 0.20% 0.01% 0.09% 0.10% 0.02% 0.21% 0.25% 2-3 mths 3-4 mths >4 mths IMB - Jun-10 NSW/ACT Average - Jun-10 Australia Average - Jun-10 Source: QBE LMI Quarterly Arrears Survey

23 High levels of liquidity and capital Liquidity 25.0 % Statutory Minimum Capital Adequacy %

24 Ongoing Initiatives Continued expansion of branch network ACT Sutherland Shire Review IMB brand positioning Member growth and retention Reducing funding costs Increasing productivity of loan writers Improve income from ancillary products Online Strategy Regulatory changes Merger opportunities

25 IMB remains cautiously optimistic 2010/11 results will be supported by: stable net interest margin Sound credit conditions Disciplined approach to cost containment Asset growth dependent on economic condition Strong retail deposit base Strong liquidity and capital positions 130 years of providing a real alternative to the banks

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