BOQ NPAT FALLS 41 PER CENT

Written on the 15 April 2011

BOQ NPAT FALLS 41 PER CENT

INCREASING bad debts saw the Bank of Queensland’s normalised cash NPAT crash by 41 per cent to $57.6 million for the first half of FY11.

The result was in line with guidance provided to the market earlier this year.

Outgoing Bank of Queensland managing director David Liddy (pictured) says the first half of FY11 had been adversely affected by a significant increase in bad debts.

“I’m disappointed with our bad debt experience and have dedicated significant resources in managing this area,” he says.

“On a more positive note, we have been closely managing the integration of the National Finance and Insurance businesses and I’m pleased to report that both are performing well and have been successful additions to the core banking business.

“Over the past six months and in the face of significant natural disaster, the bank has continued to drive growth through our owner-managed branch network, which is a huge accomplishment.”

Liddy says the bank’s bad debts have continued to grow, with underlying bad debts increasing to $134.4 million.

“We’ve seen an increase in underlying bad debts driven by impairment exposure and, to ensure transparency, we’ve tried to specifically book weather impacted exposures where we could identify them.

“We’re seeing early signs of normal business activity and settlements restored to pre-flood levels within two months and we haven’t changed our flood related provisioning since the February market update.”

Liddy has chosen not to extend his current contract, which expires at the end of the calendar year. The board has commenced a formal search for his replacement.


Latest News

MEGAPORT PLACED IN TRADING HALT FOR EUROPEAN EXPANSION

MEGAPORT (ASX: MP1) has been placed in a trading halt for a proposed capital raising.

The Brisbane company al...

CONSTRUCTION FALLING AWAY BUT GROWTH REMAINS 'IMPRESSIVE'

MAJOR engineering and commercial construction in Australia is falling away faster than expected, says Deloitte Access...

HAMILTON REACH SCORES NEW TOWER

FRASERS Property Australia is adding to its Hamilton Reach community with a new apartment block.

The $900 million ...

GUVERA 'GIVING UP ON AUSTRALIA'

AFTER being snubbed by the ASX, losing its CEO and receiving a hard time on social and mainstream media, music str...

Related News

CONSTRUCTION FALLING AWAY BUT GROWTH REMAINS 'IMPRESSIVE'

MAJOR engineering and commercial construction in Australia is falling away faster than expected, says Deloitte Access...

FROM THE TANK: BRINGING AN IDEA TO LIFE

TAKING an idea from a lightbulb moment to a fully-fledged enterprise may seem overwhelming for the average punter,...

ECONOMIC GROWTH SURGES IN NSW

NSW is leading Australia in economic growth, says the latest Commsec State of the States report.

The state re...

RESTRUCTURE TO COST WOOLWORTHS $1 BILLION

WOOLWORTHS (ASX:WOW) will take a $959 million impairment in FY16 as the company undertakes a restructure and closes u...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter