BOQ strong on profit and deposits
(9 April 2009 – Australia) Bank of Queensland (BOQ) has announced an increase in first half cash profit, up 29 percent to A$84.2 million, along with strong deposits on the back of a focussed strategy.
For comparative purposes, in last year’s full year result, BOQ recorded cash profit of A$155.4 million, up from A$106.1 million in the previous year.
In the first half of 2008, BOQ recorded cash profit of A$65.3 million and followed that up with a second half profit A$90.1 million.
BOQ managing director, David Liddy, said that the bank has continued to grow above system in both lending and deposits. Lending growth up is up 13 percent or 1.6 times system, while retail deposit growth was up a solid 25 percent.
Liddy said that the bank’s owner-managed branch model was the key to the growth, particularly being able to change current strategy towards a deposit gathering focus.
For a regional bank like BOQ, moving a focus away from more expensive wholesale funding has become a required strategy. Retail deposits now fund 58 percent of the bank’s loans under management.
Liddy also said that the bank’s impairment charges are lower than their peer group, which reflects the focus on well-secured housing and SME lending, and limited commercial exposures greater than A$10 million.
BOQ announced a fully franked interim ordinary dividend of 26 cents per share, a decrease of 9 cents or 26 percent compared to the same time last year, in order to preserve capital strength in the current challenging market conditions.
In the first half of 2008, BOQ recorded cash profit of A$65.3 million and followed that up with a second half profit A$90.1 million.
BOQ managing director, David Liddy, said that the bank has continued to grow above system in both lending and deposits. Lending growth up is up 13 percent or 1.6 times system, while retail deposit growth was up a solid 25 percent.
Liddy said that the bank’s owner-managed branch model was the key to the growth, particularly being able to change current strategy towards a deposit gathering focus.
For a regional bank like BOQ, moving a focus away from more expensive wholesale funding has become a required strategy. Retail deposits now fund 58 percent of the bank’s loans under management.
Liddy also said that the bank’s impairment charges are lower than their peer group, which reflects the focus on well-secured housing and SME lending, and limited commercial exposures greater than A$10 million.
BOQ announced a fully franked interim ordinary dividend of 26 cents per share, a decrease of 9 cents or 26 percent compared to the same time last year, in order to preserve capital strength in the current challenging market conditions.
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