Despite full-year loss, BoQ future looks positive
(22 October 2012 – Australia) Despite a A$17 million full-year loss, Bank of Queensland (BoQ) chief executive, Stuart Grimshaw, believes the bank is in sound financial shape for the coming year.
BoQ is the first Australian bank to post a full-year loss in two decades, however the recent A$450 million capital raising is helping to strengthen the bank’s balance sheet.
Grimshaw said the lender returned to profitability during the second half with a A$74 million cash profit. This wasn't enough to offset the first half's A$91 million loss.
The negative full-year result came after BOQ experienced a jump in soured commercial and residential property loans, mostly around the Gold Coast and northern New South Wales.
''We've spent a lot of time getting our hands around it, and we're comfortable with the position we are in,'' he told analysts. Even so, economic conditions remain challenging, illustrated by low demand for loans caused by weak consumer sentiment, Grimshaw said.
Grimshaw said the lender returned to profitability during the second half with a A$74 million cash profit. This wasn't enough to offset the first half's A$91 million loss.
The negative full-year result came after BOQ experienced a jump in soured commercial and residential property loans, mostly around the Gold Coast and northern New South Wales.
''We've spent a lot of time getting our hands around it, and we're comfortable with the position we are in,'' he told analysts. Even so, economic conditions remain challenging, illustrated by low demand for loans caused by weak consumer sentiment, Grimshaw said.
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