BoQ business banking strengthens as branch expansion slows
(17 October 2005 – Australia) Bank of Queensland has posted a net profit after tax of A$91.7 million compared with A$64.5 million a year ago, marking a 42 percent increase.
BoQ managing director David Liddy said the bank had a strong business model in place, built on an expanding retail network, strong business banking and commercial growth.
He said the intention over the next six to 12 months was to expand interstate but admitted BoQ’s ambition of rolling out 100 new interstate branches by August 2006 was "unlikely".
Liddy said the bank has encountered some issues concerning development applications and site selection in metropolitan areas, and that finding suitable owner managers took time.
"We will not sacrifice the quality of owner managers or the sites for new branches for expediency. So, if it takes longer to reach the 100 interstate branch mark, so be it," he said.
"Provided those branches are of the same quality that we have opened to date, I won’t mind and neither should the market," Liddy said.
He said BoQ’s equipment leasing business grew 21 percent over the past 12 months and that its business banking portfolio had increased by 16 percent.
Liddy said the bank’s interstate branches had achieved the monthly lending approvals previously sourced through mortgage brokers, which BoQ stopped using in June 2004.
Our withdrawal from the use of mortgage brokers has obviously impacted through lower new loan approvals, which dropped four percent year on year. However, we planned for this reduction and we have now made up the loss in monthly approvals and achieve more valuable, ongoing, stronger customer relationships.
During the year, BoQ sold its ATM Solutions business to Macquarie Bank for a net profit of A$15.5 million.
He said the intention over the next six to 12 months was to expand interstate but admitted BoQ’s ambition of rolling out 100 new interstate branches by August 2006 was "unlikely".
Liddy said the bank has encountered some issues concerning development applications and site selection in metropolitan areas, and that finding suitable owner managers took time.
"We will not sacrifice the quality of owner managers or the sites for new branches for expediency. So, if it takes longer to reach the 100 interstate branch mark, so be it," he said.
"Provided those branches are of the same quality that we have opened to date, I won’t mind and neither should the market," Liddy said.
He said BoQ’s equipment leasing business grew 21 percent over the past 12 months and that its business banking portfolio had increased by 16 percent.
Liddy said the bank’s interstate branches had achieved the monthly lending approvals previously sourced through mortgage brokers, which BoQ stopped using in June 2004.
Our withdrawal from the use of mortgage brokers has obviously impacted through lower new loan approvals, which dropped four percent year on year. However, we planned for this reduction and we have now made up the loss in monthly approvals and achieve more valuable, ongoing, stronger customer relationships.
During the year, BoQ sold its ATM Solutions business to Macquarie Bank for a net profit of A$15.5 million.
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