BOQ cash profit jumps 21 percent
(15 October 2009 – Australia) The Bank Of Queensland (BOQ) announced a cash profit increase of 21 percent on last year, despite the domination of the Big Four.
The bank has recorded a normalised cash profit of A$187.4 million for the year to August 31, up from A$155.4 million a year earlier. This figure was in line with the group’s guidance for A$186 million, as it cut costs and increased lending.
Net profit including impairments, however, is up only two percent to A$141.1 million from A$138.7 million.
Net interest income was up 14 per cent year on year to A$481.1 million, which the bank said was a strong result given pressures on margins.
The bank’s retail deposits increased by a significant 16 percent from the previous record year, which equates to 108 times system growth.
This enabled the bank to fund 88 percent of growth in loans under management this year. Total loans under management were up 10 percent on year at A$28.9 billion.
Charges for bad loans totalled A$66 million for the year, as provisions for specific loans more than doubled to A$60 million from A$24.3 million a year before.
David Liddy, managing director, BOQ, said that the company’s level of impaired assets has increased in line with the deteriorating economy and the banking sector, but overall BOQ’s asset quality is sound.
The bank expects bad debts to peak in the coming financial year, but BOQ has increased the General Reserve for Credit Losses to account for this and the losses to date are still tracking well below other larger competitors, added Mr Liddy.
Net profit including impairments, however, is up only two percent to A$141.1 million from A$138.7 million.
Net interest income was up 14 per cent year on year to A$481.1 million, which the bank said was a strong result given pressures on margins.
The bank’s retail deposits increased by a significant 16 percent from the previous record year, which equates to 108 times system growth.
This enabled the bank to fund 88 percent of growth in loans under management this year. Total loans under management were up 10 percent on year at A$28.9 billion.
Charges for bad loans totalled A$66 million for the year, as provisions for specific loans more than doubled to A$60 million from A$24.3 million a year before.
David Liddy, managing director, BOQ, said that the company’s level of impaired assets has increased in line with the deteriorating economy and the banking sector, but overall BOQ’s asset quality is sound.
The bank expects bad debts to peak in the coming financial year, but BOQ has increased the General Reserve for Credit Losses to account for this and the losses to date are still tracking well below other larger competitors, added Mr Liddy.
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