BoQ cuts guidance
(17 February – Australia) Natural disasters, Cyclone Yasi and the Queensland floods, have forced Bank of Queensland to cut its full-year profit guidance for the second time in two months.
After a review of its portfolio and operations, the bank said it now expects cash profit for fiscal 2011 to be between A$175 million and A$195 million.
Stock slid as much as 51 cents, or 5 percent, to A$9.80 on the news.
That guidance is down A$35 million from the previous range of A$210 million and A$230 million, which was issued on December 8, itself a downgrade from previous guidance of between A$220 million and A$250 million.
BOQ has 62 percent of its business in Queensland.
'Given our high business concentration in Queensland, we've taken a prudent approach to these events,' managing director David Liddy said in a statement.
The bank has increased its provisioning levels for the first half of fiscal 2011 by A$45 million, due to a one-off management overlay relating to the extreme weather events and economic conditions.
The profit downgrade may impact on dividends, Mr Liddy warned.
'Given these one-off charges, the board may need to review the projected dividend growth,' he said.
Stock slid as much as 51 cents, or 5 percent, to A$9.80 on the news.
That guidance is down A$35 million from the previous range of A$210 million and A$230 million, which was issued on December 8, itself a downgrade from previous guidance of between A$220 million and A$250 million.
BOQ has 62 percent of its business in Queensland.
'Given our high business concentration in Queensland, we've taken a prudent approach to these events,' managing director David Liddy said in a statement.
The bank has increased its provisioning levels for the first half of fiscal 2011 by A$45 million, due to a one-off management overlay relating to the extreme weather events and economic conditions.
The profit downgrade may impact on dividends, Mr Liddy warned.
'Given these one-off charges, the board may need to review the projected dividend growth,' he said.
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