BoQ expecting full year loss
(8 October 2012 – Australia) Bank of Queensland (BoQ) shares fell more than 5 percent after the bank warned it will post the first full-year loss by an Australian bank in 20 years.
The small lender’s exposure to the struggling south-east Queensland property market resulted in a A$90.6 million first-half loss.
BoQ said today its second-half profit would not be large enough to prevent a full year loss for 2011-12.
BoQ expects to make a profit of A$70 million to A$75 million in the second half of its fiscal year, the six months to 31 August.
The final tally would be a full-year loss of up to A$20.6 million, the first posted by a local bank since ANZ made a A$579 million loss in its 1991-92 fiscal year.
The bank said it had added another A$15 million to its provisions for bad debts during the second half because of the ongoing challenges in the economy and property market, particularly in south-east Queensland.
BoQ took an impairment of A$328 million on its loans in the first half in response to the impact of the 2011 floods and weaker economic conditions on the Queensland property market.
The bank’s second half profit has also been impacted by $10 million in losses from one-off items identified in an operational review.
Those items included refunds to a small number of customers for incorrect interest charges on specific accounts, BoQ said.
There were also legal expenses associated with the Storm Financial case, restructuring and redundancy costs, and government guarantee break fees.
BoQ said today its second-half profit would not be large enough to prevent a full year loss for 2011-12.
BoQ expects to make a profit of A$70 million to A$75 million in the second half of its fiscal year, the six months to 31 August.
The final tally would be a full-year loss of up to A$20.6 million, the first posted by a local bank since ANZ made a A$579 million loss in its 1991-92 fiscal year.
The bank said it had added another A$15 million to its provisions for bad debts during the second half because of the ongoing challenges in the economy and property market, particularly in south-east Queensland.
BoQ took an impairment of A$328 million on its loans in the first half in response to the impact of the 2011 floods and weaker economic conditions on the Queensland property market.
The bank’s second half profit has also been impacted by $10 million in losses from one-off items identified in an operational review.
Those items included refunds to a small number of customers for incorrect interest charges on specific accounts, BoQ said.
There were also legal expenses associated with the Storm Financial case, restructuring and redundancy costs, and government guarantee break fees.
Subscribe