Business banking underpins BOQ result
(4 April 2007 – Australia) Business banking and equipment finance have been key drivers of Bank of Queensland’s strong interim profit.
BOQ posted a net profit after tax of A$48.4 million for the first half of 2007, up 21 percent on the previous year.
The bank said its loans under management had grown 26 percent, 1.7 times system, while retail deposits had grown 30 percent.
BOQ managing director David Liddy said the business banking division, particularly equipment finance, debtor finance and the SME segment, continued to outperform the market.
"We have had 22 percent growth in the business loans portfolio compared to the first half of last year. In particular, our equipment finance book has grown at 21 percent and our debtor finance portfolio has grown 39 percent, leveraging the bolt on Orix acquisition in December 2005," he said.
"This growth, combined with our booming branch network, has BOQ perfectly placed for the SME market," Liddy said.
He said the bank’s owner managed branch (OMB) network would continue to be a "fundamental platform" of the bank’s strategy as it expanded nationally. Some 10 Queensland branches had changed from corporate branches to OMBs and 11 new branches were scheduled to open over the next six months.
On the subject of the proposed merger with Bendigo Bank, Liddy said concerns raised over the past fortnight by some Bendigo members would be allayed and the two banks could become "natural allies against the big banks" and a "sustainable force and alternative".
"We both understand how to run growing branch networks involving third parties, whether they are franchisees or community boards," he said.
The bank said its loans under management had grown 26 percent, 1.7 times system, while retail deposits had grown 30 percent.
BOQ managing director David Liddy said the business banking division, particularly equipment finance, debtor finance and the SME segment, continued to outperform the market.
"We have had 22 percent growth in the business loans portfolio compared to the first half of last year. In particular, our equipment finance book has grown at 21 percent and our debtor finance portfolio has grown 39 percent, leveraging the bolt on Orix acquisition in December 2005," he said.
"This growth, combined with our booming branch network, has BOQ perfectly placed for the SME market," Liddy said.
He said the bank’s owner managed branch (OMB) network would continue to be a "fundamental platform" of the bank’s strategy as it expanded nationally. Some 10 Queensland branches had changed from corporate branches to OMBs and 11 new branches were scheduled to open over the next six months.
On the subject of the proposed merger with Bendigo Bank, Liddy said concerns raised over the past fortnight by some Bendigo members would be allayed and the two banks could become "natural allies against the big banks" and a "sustainable force and alternative".
"We both understand how to run growing branch networks involving third parties, whether they are franchisees or community boards," he said.
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