BOQ posts 45% net profit loss
(15 April 2011 – Australia) Bank of Queensland (BOQ) has posted a fall of 45 percent net profit in the six months to February.
The regional leader was hit by an increase in bad debts and reported a net profit of A$50.4 million, down from A$90.9 million the year before. Cash profit also declined 41 percent to A$57.6 million.
The bank predicted in February that profits would be lower than expected due to the floods and Cyclone Yasi in Queensland, where BOQ has 62 percent of its business.
BOQ chief executive David Liddy said the bad debts had to be addressed.
'I am disappointed with our bad debt experience and have dedicated significant resources in managing this area,' Mr Liddy said.
'We have not changed our flood-related provisioning since the February market update and, as the majority of our book is well-secured housing and SME lending, we are comfortable there will be no further provisioning required in this regard,' he said.
The bank cut its full year profit forecast by A$35 million to between A$175 million and A$195 million, largely due to an increase in underlying bad debts reaching A$134.4 million.
Despite the bad news, loan growth during the six months was 1.8 times system while deposits increased at 1.3 times system.
Acquisitions such as National Finance and Insurance had delivered better than expected results.
The bank predicted in February that profits would be lower than expected due to the floods and Cyclone Yasi in Queensland, where BOQ has 62 percent of its business.
BOQ chief executive David Liddy said the bad debts had to be addressed.
'I am disappointed with our bad debt experience and have dedicated significant resources in managing this area,' Mr Liddy said.
'We have not changed our flood-related provisioning since the February market update and, as the majority of our book is well-secured housing and SME lending, we are comfortable there will be no further provisioning required in this regard,' he said.
The bank cut its full year profit forecast by A$35 million to between A$175 million and A$195 million, largely due to an increase in underlying bad debts reaching A$134.4 million.
Despite the bad news, loan growth during the six months was 1.8 times system while deposits increased at 1.3 times system.
Acquisitions such as National Finance and Insurance had delivered better than expected results.
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