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

Club Marine Recognised for Outstanding Service with 2025 Product Review Award

19 Nov 2025: Paige Estritori

Club Marine, Australia's leading provider of recreational boat insurance, has been honoured with the 2025 Product Review Award for Insurance. This accolade is a testament to the company's unwavering commitment to customer satisfaction and service excellence. - read more

Markel Insurance Expands into Australian Marine Market with New Leadership

19 Nov 2025: Paige Estritori

Markel Insurance, a prominent global insurer, has announced the appointment of Tim Wills as Head of Marine - Australia. This strategic move signifies Markel's entry into the Australian marine insurance market, beginning with marine cargo coverage. - read more

Addressing the $38 Billion Equity Shortfall in Australian SMEs

19 Nov 2025: Paige Estritori

Australian small and medium-sized enterprises (SMEs) are pivotal to the nation's economy, representing only 6% of all businesses yet contributing 26% to the Gross Domestic Product (GDP). Despite their significance, these businesses face a substantial barrier: a $38 billion equity funding gap that stifles their growth potential. - read more

20-Fold Increase in Small Business Restructurings to Sustain Operations

19 Nov 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has reported a significant uptick in small business restructurings (SBR), with 3,388 appointments between July 2022 and December 2024. This marks an almost 20-fold increase compared to the previous period, indicating that more directors are embracing this regime to retain control while restructuring debt. - read more

AFCA Alerts SMEs to Risks of Unregulated Lenders Amid Complaint Surge

19 Nov 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has issued a warning to small businesses regarding the risks associated with unregulated lenders. This comes in response to a notable increase in complaints that AFCA cannot address due to the lenders' lack of membership in the authority. - read more

Click for more Finance News