The significant economic impact and uncertainties created by the COVID-19 pandemic have impacted asset values, business and housing loan availability, affordability and demand.
IBA has proactively implemented strong relief measures to support existing customers and respond to hardship requests, including the reduction of housing loan interest rates for its customers until November 2020, and the announcement of a new Indigenous Business Relief Package for all Indigenous businesses who have been impacted by the crisis, to be implemented during the year to 30 June 2021.
Despite continued strong interest in our products, especially housing loans, COVID-19 impacts resulted in a decrease in the total value of home loans provided in comparison to the previous period.
Whilst interest rates have remained low, the impact of COVID-19 has meant credit conditions remain difficult. As borrowing from mainstream lenders becomes challenging, this creates increasing demand on IBA’s housing and business solutions. Consistent with last year, IBA’s access to capital is finite, meaning it will need to access new funding solutions to keep pace with growing demand for new lending and support for existing customers.
The performance of IBA’s investment portfolio has been impacted by COVID-19, in particular affecting the valuations of invested financial assets and investment properties.