The following pages detail IBA’s performance results by division presenting performance against agency-wide targets. Table 1 shows how IBA met its purpose in 2019–20. The Environment section on page 28 has more information on IBA’s operating environment and its influence on performance.

IBA’s 2019–20 Corporate Plan details the methods and data sources used to calculate performance measures. Any changes made to the calculation of results are noted in the analysis.

The COVID-19 pandemic created a significant amount of economic turmoil internationally in 2019-20. IBA's customers and partners were not impervious to these impacts. As a result, IBA achieved seven of its twelve performance measure targets. The five targets not met were:

• Measure 1 – number of home ownership outcomes approved
• Measure 2 – value of home ownership outcomes approved
• Measure 8 – total amount of Indigenous co-investments
• Measure 9 – portfolio return to Indigenous co-investors
• Measure 11 – proportion of suppliers that are Indigenous.

IBA delivered 454 home loan approvals to its Indigenous customers for the financial year, and prior to COVID-19, was on track to achieve its target for the full year. Whilst IBA’s level of home lending was comparable to its long-term average, it was below the targets for dollar value and number of loans originally set for the year prior to COVID-19.

The loan relief and assistance offered temporarily affected the level of income to IBA on the loan book. This, taken together with COVID-19 restrictions which prohibited open houses and auctions, affected the level of home loans IBA was able to settle between March and June 2020.

A strong performance was still possible against targets for the delivery of loans to first home buyers and customers transitioning from social housing. IBA exceeded the target for transitioning customers to mainstream lenders.

The Business Solutions division exceeded the business lending target, approving $59.9 million in finance facilities. This includes $7.0 million in finance packages approved under IBA’s COVID-19 Business Relief Package. Many of IBA's existing customers impacted by COVID-19 also received additional assistance in the form of loan repayment deferrals and interest waivers. Business customers had four-year survivability rates that exceeded the Australian average survivability rate in all relevant business categories. This is a positive result, demonstrating that businesses supported by IBA have remained resilient compared to Australian averages.

COVID-19 induced market volatility saw investment values falling in March 2020, before recovering some ground over the remainder of the financial year. Indigenous co-investment fas at 30 June 2020 was $169 million against a target of $200 million, reflecting reduced investor appetite due to COVID-19. The portfolio return to Indigenous co-investors was 0.64%, not meeting the targeted 3.2% noting that many equity markets funds produced negative returns for the 2019–20 financial year.

IBA met its target for the value of Indigenous procurement expenditure and employment but fell short of its target for the proportion of suppliers that were Indigenous by 6.5%.

TABLE 01: IBA’S PERFORMANCE AGAINST ITS 2019–20 PERFORMANCE MEASURE TARGETS