Bank of Queensland Ltd
(ASX:BOQ) has downgraded its fiscal 2011 cash profit guidance amid weaker than expected trading conditions in its commercial property portfolio.
Managing director David Liddy says while the bank remains on target for an increase in full year net profit, the range has been narrowed to between $210 million and $230 million.
Previous full year profit guidance was between $220 million to $250 million.
In an update to the market, the bank has also raised its projected bad and doubtful debt expense to between $85 million to $90 million in the first half of the current financial year.
However, Mr Liddy says the bank expects a significant improvement in bad and doubtful debt expenses for the second half of the financial year.
Bank of Queensland lifted its net profit from $141.1 million last year to $179.6 million in the year to 31 August 2010.
