Regional lender Bank of Queensland Ltd
(ASX:BOQ) has reported a 96% rise in half year profit today and says it is in a far stronger position than it had been at the start of the global financial crisis.
The bank reported a statutory profit of $90.9 million for the six months to February 28, 2010, with cash profit up 15% to $97.2 million.
The company’s bad debts rose during the half, as expected, however it says it is now seeing an improved more stable position.
Managing director David Liddy says the bank is now focused on delivering on its commitments to the market in terms of growth, earnings and cost reduction.
Mr Liddy says the bank has delivered on its commitment to improve its margins, increasing the company’s net interest margins by 13 basis points from the first half of 2009 to 1.65%, despite increased funding costs.
Bank of Queensland declared a fully franked interim dividend of 26 cents a share, steady with the first half of 2009.
Bank of Queensland is in exclusive talks with CIT Group Australia and New Zealand regarding the purchase of their vendor finance business.
In the 12 months to August 30, 2009 Bank of Queensland earned profit of $141.1 million.
