Strong first half for BOQ
(11 April 2005 – Australia) Bank of Queensland has posted an interim net profit after tax of A$35.9 million, a 28 percent increase on the same period last year.
In announcing the result, the bank said it was on course to meet its interstate expansion targets of 100 new owner operator branches outside its home state by August 2006.
The bank also addressed analyst concerns, saying it had "arrested" margin decline and would totally replace mortgage business through its own branches by August of this year, after leaving the broker channel in June 2004.
BOQ managing director David Liddy said the bank had steadied and then grown interest margins from 2.18 percent in the second half of last year to 2.25 percent in the first half of 2005.
He said the bank’s first five interstate branches had average balance sheet footings of A$28 million after the six months they had been operating.
"Importantly, deposit growth has been strong at more than 45 percent of lending settlements," Liddy said.
Over the past three years, BOQ had boosted its business banking to 40 percent of loans under management, increased its ATM network to more than 2200 Australia-wide, and grown the branch network from 93 to 160.
"We now have the platform in place and the tools to compete while moving into new markets and using our franchised-based, service-focused branch model together with our business banking platform as a major attraction for new customers," Liddy said.
"We have an advantage over many of our competitors in that we have a great deal of organic expansion ahead of us. When we talk about EPS growth we are talking about growing our business while improving our efficiencies," he said.
He said BOQ was growing its business banking presence and had excellent SME market penetration and high customer satisfaction among small business customers.
The bank also addressed analyst concerns, saying it had "arrested" margin decline and would totally replace mortgage business through its own branches by August of this year, after leaving the broker channel in June 2004.
BOQ managing director David Liddy said the bank had steadied and then grown interest margins from 2.18 percent in the second half of last year to 2.25 percent in the first half of 2005.
He said the bank’s first five interstate branches had average balance sheet footings of A$28 million after the six months they had been operating.
"Importantly, deposit growth has been strong at more than 45 percent of lending settlements," Liddy said.
Over the past three years, BOQ had boosted its business banking to 40 percent of loans under management, increased its ATM network to more than 2200 Australia-wide, and grown the branch network from 93 to 160.
"We now have the platform in place and the tools to compete while moving into new markets and using our franchised-based, service-focused branch model together with our business banking platform as a major attraction for new customers," Liddy said.
"We have an advantage over many of our competitors in that we have a great deal of organic expansion ahead of us. When we talk about EPS growth we are talking about growing our business while improving our efficiencies," he said.
He said BOQ was growing its business banking presence and had excellent SME market penetration and high customer satisfaction among small business customers.
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