Lending reports

BoQ announces higher earnings and increases dividend under uncertain conditions

Bank of Queensland announced a $268 million increase in half-year revenue and will pay shareholders a 22¢ interim dividend as the lender continues its integration of superfund-owned ME Bank amid uncertain economic conditions .

The BoQ reported on Thursday that growth in personal loans, businesses and customer deposits contributed to a 14% increase in cash profits in the six months to Dec. 31.

Bank of Queensland chief executive George Frazis said Australia was well placed for a “continued economic recovery”.Credit:Paul Harris

Home loans increased 9% to $2.6 billion, business loans increased 8% to $600 million, and deposit balances increased $1.8 billion during the year. period, contributing to a 38% increase in statutory net profit after tax of $212 million.

BoQ acquired ME Bank last July after decades of ownership by industry pension funds. The BoQ said ME Bank’s home loan portfolio returned to the black, growing 2% in the half after falling in the previous two halves.

Chief executive George Frazis said the integration of ME Bank had progressed well in mixed economic conditions.

“Australia remains well-positioned to continue the economic recovery, with low unemployment, strong terms of trade and a significant pipeline of residential and infrastructure construction to be completed,” he said. . “However, uncertainty remains given geopolitical tensions, high inflation, rising interest rates, supply chain and labor disruptions.”

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Digging into the details, the BoQ said its net interest margin – the key measure of profitability – fell 0.12% while the allowance for bad debts was reduced by $15 million in economic conditions. more favorable.

Shareholders will receive the fully franked dividend on May 26, an increase of 29% over the corresponding period.