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Bank of Queensland strengthens business book

Bank of Queensland strengthens business book

(Australia) Bank of Queensland has boosted its business banking portfolio by buying equipment and vendor financing company UFJ Finance Australia for almost A$13 million. According to the bank, the deal has increased the bank’s business banking book by "more than one third".

In a statement, Bank of Queensland said at end of calendar year 2002, UFJ had total assets of $768 million including $286 million of securitised receivables under management.

Bank of Queensland managing director, David Liddy, said the purchase of UFJ fitted well with the bank’s stated strategy.

"This is a business we understand and in which we have a core competency," Liddy said.

"This acquisition allows us to build the scale of our existing equipment financing business and build a stronger presence in business banking.

"Diversifying and strengthening product lines in this way further reduces our dependence on the housing and mortgage market, improving the combined group’s financial strength and stability," he said.

Moody’s ratings agency said it would affirm BOQ’s ratings as the purchase appeared to "constitute a relatively natural fit with the bank".

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