Market Announcements

IMB Members are advised that the 2015 Annual General Meeting is to be held on Tuesday, 27 October 2015 at 10.00am (Sydney time), at the Hoskins Room, Novotel Northbeach Hotel, 2-14 Cliff Road, North Wollongong.

As IMB celebrates 135 years of operations and the change to IMB Bank on August 1, it has reported a strong performance for the year ending June 2015, with a result which is $3.4 million (or 11.8%) higher than the previous year’s profit result.

In 2008, IMB’s Board sought a report from PricewaterhouseCoopers Securities Ltd (PwC Securities) on the relative contribution Shareholder Members have made to the permanent funding of IMB compared to the contribution made by IMB’s other Member classes (Contributed Funding).

IMB is pleased to advise that the Australian Prudential Regulation Authority (APRA) has consented to IMB Ltd using the restricted term “bank”. As such IMB will begin trading under the business name IMB Bank from 1 August 2015. IMB’s legal name remains IMB Ltd.

As IMB celebrates 135 years of helping members achieve their financial goals, we are pleased to advise that we have applied to the Australian Prudential Regulation Authority (APRA) to use the restricted term ‘bank’ and become a mutual bank.

IMB Ltd (“IMB”) today announces the successful completion of its off-market share buyback (“Buyback”). The Buyback was the third in a series of buybacks that IMB expects to undertake over the medium term.

IMB Ltd advises that the Deemed Market Value for the Off-Market Buyback of IMB Shares is $5.35. The final Buyback Price will be determined by applying the Buyback Discount of between 0% and 14% (at increments of 2%) to the Deemed Market Value.

IMB is pleased to announce the sale and lease back of its head office premises at 253-259 Crown Street Wollongong.

Despite a highly competitive banking environment, IMB, one of Australia’s largest building societies, has reported solid business results for the six months ended 31 December 2014. IMB’s profit after tax for the period was $14.5 million, an increase of 6% over the previous corresponding period. Management of the funding base and asset book were key to this result, increasing average interest margin to 2.07%. “The results point to IMB’s strengths,” IMB’s CEO Robert Ryan said. “IMB’s capital ratio at 16.2%, and its liquidity ratio remain well above prudential requirements. In addition, IMB’s level of mortgage arrears continues to be well below national averages. The focus on margin management and cost control will continue to be important for IMB in the current low interest rate, highly competitive environment." Mr Ryan said IMB’s commitment to members was evidenced by its high customer satisfaction level of 96%*, the recent opening of a new branch at Oran Park, and further development in the online and mobile banking space including the implementation of an online personal loan application system and a new mobile banking app for Apple and Android phones. IMB’s Chairman, Michael Cole, said the current competitive financial market conditions would continue to have an impact over the remainder of the financial year. However, despite the challenges, IMB was well positioned to continue to grow and meet members’ needs as it enters its 135th year of operation. The Board has declared a fully franked dividend of 10 cents per share. This is in line with the dividend of the prior corresponding period, and the previously advised dividend guideline to maintain overall dividend levels provided capital adequacy levels are above 14% and profits are stable or increasing. The dividend is payable on 27 February 2015 to shareholders registered at that date. The Board has also announced an off-market share buyback under which IMB intends to buy back up to $16 million of its ordinary shares on issue. Shareholders should refer to the separate announcement on the Buyback for further details. *Discovery Research, Sept 2014 Wednesday 28 January 2015 For more information, please contact: Louise Di Francesco Verve Communications M: 0418 617 869 E: louised@vervecommunications.com.au