BOQ TURNS BIG PROFIT

BANK of Queensland (ASX: BOQ) has bounced back from a full-year loss of $91 million to record a strong $100.5 million statutory profit for the six months to February.

The bank reported 16 per cent increase in cash earnings after tax to $119.9 million, and a 37 per cent increase in statutory profit to $100.5 million, compared to the prior half.

Impairment expenses are also down 19 per cent to $59.5 million
BOQ’s cash net interest margin increased 2 basis points to 1.66 per cent, while the fully-franked dividend has increased two cents a share to 28 cents.

BOQ shares are today trading slightly up at $ 9.490 per unit early this afternoon, on a day when the four big banks are in the red.

Managing Director and CEO Stuart Grimshaw (pictured) says the “solid” results underline the significant progress towards the bank’s new strategy, with all key financial indicators heading in the “right direction”.

“We have worked hard to re-establish BOQ ’s business fundamentals and are now organisationally fit and in a better position to focus on sustainable and profitable growth,“ says Grimshaw.

“We are successfully growing the Bank’s asset base, particularly within the Business Bank, while staying within our revised risk framework and tightly managing expenses.

“Basic EPS increased 2 per cent to 37.9 cents and we have seen improvement in our return on tangible equity to 11.6 per cent.”

Over the course of the half, BOQ delivered a number of important strategic initiatives.

“We have launched a mortgage broker pilot program in Western Australia and recently announced the acquisition of Virgin Money Australia, a deal which enhances our ability to acquire customers online and opens up new market segments.”

“A new Customer Relationship Management system is being successfully piloted in the retail network and is delivering expected benefits, particularly in enhancing branch efficiency.”

BOQ’s business bank opened seven “agri centres” in Queensland and New South Wales and expanded its financial market offerings with early sales of interest rate hedging products.