BOQ POSTS RECORD RESULT

Written on the 10 October 2014

BOQ POSTS RECORD RESULT BANK of Queensland (ASX: BOQ) has posted a record result of $301.2 million in cash earnings after tax, a 20 per cent increase from the previous financial year.

BOQ acting CEO Jon Sutton, who took over from Stuart Grimshaw last month, says the results come down to delivering on four key pillars that have been ingrained in the corporate culture over the past two years.

With the results, Sutton also announced BOQ has renewed a partnership with Hewlett-Packard for five years.

The company will service BOQ’s IT to underpin the bank’s transformation.

“The record profit we’ve announced today reflects our success on a number of fronts,” says Sutton.

“We continue to deliver against our four strategic priorities: putting the customer in charge, growing the right way, finding a better way and being loved like no other.

“The solid foundations we’ve put in place over the past two years are starting to deliver and we’re well on our way to building a bank that is lower risk, has lower volatility and is set up for a sustainable future.”

Impaired assets were reduced 25 per cent to $292.9 million, which is half the level reported in February 2012, and impairment expense was down 25 per cent for the year.

BOQ’s business bank also reported favourable results, growing at nearly twice the rate of the market, and the acquisition of specialist finance and leasing business Investec proved a positive move.

“Our business bank asset growth increased 1.7 times the system which shows there is a place for our relationship-based approach,” says Sutton.

“A huge achievement in the year was the acquisition of what is now called BOQ Specialist and we are delighted with its progress to date.

“BOQ Specialist wrote around $1 billion of mortgages in the past year and contributed $3.1 million in cash NPAT in its first month as part of the group, right in line with our expectations.”

BOQ’s retail asset growth lagged behind competitors, but Sutton says this was to be expected considering the bank is “not prepared to compromise our disciplined approach to pricing and risk”.

The company also reported a six per cent increase in expenses, indicating a more cautious approach to spending may be necessary.

However, this is in light of the company’s ongoing transformation which includes a new head office.

“While expense growth was higher than we would have liked, we remained committed to disciplined management of the bank’s expense base,” says Sutton.

“Expense growth reflected significant investment in frontline capabilities in line with our strategy to open more distribution channels, including expansion of our business banking capabilities and establishment of a broker support network and mobile banking unit.”

BOQ shareholders will be paid a final dividend of 34 cents per share on November 27, taking full year dividends to 66 cents per share fully franked, an increase of 14 per cent on the previous financial year.

BOQ shares were trading up 2.72 per cent at $12.1 per share following the announcement.

 


Latest News

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter