Bank of Queensland Warns of Rising Bad Loans Amid Economic Uncertainty

0

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In the six months up to the end of February, the bank reported a total income of $793 million, a slight decrease from the $795 million recorded in the previous year. However, post-tax cash earnings increased by 6% to reach $183 million, driven by improved margins, reduced costs, and lower credit losses, surpassing the expected $165.7 million.

The bank's net interest margin, which measures the difference between the interest received by a bank and the interest it pays on deposits, rose to 1.57%, aligning with market forecasts. BOQ's managing director, Patrick Allaway, highlighted the bank's transition to a more streamlined, specialist bank offering a superior customer experience through its digital platform.

Allaway expressed confidence in the bank's strategy to shift its portfolio towards high-return segments and transform the retail bank into a scalable and cost-efficient digital entity. The changes aim to enhance customer experience and improve overall performance for stakeholders.

BOQ successfully converted all 114 owner-managed branches into corporate branches by March, incurring costs estimated between $115-$125 million for the full year. Despite ongoing challenges, the bank remains committed to delivering positive outcomes through strategic decisions.

Amid persistent cost-of-living pressures and anticipated prolonged high-interest rates, BOQ forecasts an increase in loan impairment expenses from historically low levels. The bank anticipates further cash rate easings in 2025, although the exact timing and extent remain uncertain.

The bank perceives improvements in the Australian economy during the half-year, bolstered by rising disposable household incomes, a robust labor market, and growing consumer confidence. Notwithstanding global geopolitical uncertainties, BOQ remains optimistic about its long-term prospects.

The Bank of Queensland declared an interim dividend of 18 cents per share, with shares climbing 4.7% to $6.81 by late morning.

Published:Wednesday, 16th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Investor Home Loans Surge Amid Record Borrowing

26 Dec 2025: Paige Estritori

In the third quarter of 2025, Australia's property market witnessed a significant shift as investors accounted for two out of every five home loans. Data from the Australian Bureau of Statistics (ABS) revealed that over 57,000 investors borrowed nearly $40 billion during this period, marking a 17.6% increase from the previous quarter. This surge underscores a growing trend of investor dominance in the housing sector. - read more

First Home Buyer Loan Applications Surge by 39.2% in October

26 Dec 2025: Paige Estritori

October 2025 marked a significant milestone for first-time homebuyers in Australia, with loan applications surging by 39.2%. This remarkable increase is largely attributed to the federal government's expansion of the 5% Deposit Scheme, which has made homeownership more accessible to a broader segment of the population. - read more

Australian Home Prices Experience Sharpest Rise in Over Two Years

26 Dec 2025: Paige Estritori

October 2025 witnessed a significant surge in Australian home prices, with a 1.1% increase-the fastest monthly rise since June 2023. This growth reflects a robust rebound in the housing market, driven by several key factors. - read more

Understanding Queensland's Boost to Buy Scheme for First-Home Buyers

24 Dec 2025: Paige Estritori

In a significant move to support first-home buyers, the Queensland Government has introduced the Boost to Buy scheme, a shared equity initiative designed to make home ownership more attainable. This program offers an equity contribution of up to 30% for new homes and 25% for existing homes, applicable to properties valued up to $1 million. Eligible households with incomes up to $225,000 can benefit from this scheme, which aims to reduce the deposit gap that often hinders first-time buyers. - read more

Rising Debt Levels Among First-Home Buyers Post-Guarantee Scheme Expansion

24 Dec 2025: Paige Estritori

The recent expansion of the First Home Guarantee Scheme has led to a notable increase in borrowing among first-home buyers. Data from Loan Market Group indicates that, following the scheme's October expansion, first-time buyers in New South Wales borrowed an average of $750,250 in October, up from $630,200 in the previous quarter-a 19% increase. Similar trends were observed in South Australia, with average loans rising by $105,000. - read more

Click for more Finance News