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

FROM KIDNAPPINGS TO LOST CAR KEYS: STARTUP LEAVES NO STONE UNTURNED

ADEDAYO Charis (pictured) is on a mission to make the world a safer place.  And, while he's at it, he als...

WAM DEBUTS AFTER RECORD $394M FLOAT

WAM Leaders (ASX:WLE) began trading on the ASX today after setting an equity capital markets record for a listed i...

SYDNEY SHINES BRIGHT AS VIVID TAKES OVER

SYDNEY has a real glow about it at the moment with the annual Vivid Sydney festival consuming the city. Around...

CLEANERS WORKING FOR MYER ALLEGEDLY UNDERPAID

THE Fair Work Ombudsman has commenced legal action against a major national cleaning contractor after workers were...

Related News

FROM THE TANK: PEOPLE MATTER MOST

WHAT am I looking for on Shark Tank? In actual fact, I am looking for 'who' rather than 'what'.
...

THREE KEYS TO LEADING A TEAM THROUGH EOFY

THE end of the financial year (EOFY) can be a taxing time for businesses, and often it takes a toll on staff. ...

BUDGET 2016: WHAT IT MEANS FOR BUSINESS

BUSINESS is at the forefront of the 2016 federal budget, with SMEs set to see their company tax rate fall to 27.5 ...

BRW TO SHUT DOWN

FAIRFAX Media (ASX: FXJ) is shutting down its BRW website, less than three years after the closure of the print magaz...

CONTENT MARKETING

Content marketing a highly effective way to create a buzz around your company

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