BOQ’s 1H17 earnings are down, but CEO is optimistic

Company News

by David Chau

Bank of Queensland (ASX:BOQ) has released its 1H17 results, and its earnings are down.

The bank reported its interim cash earnings after tax fell 2% to $175 million, and its statutory NPAT dropped 6% to $161 million.

BOQ says its reduced earnings was due to strong competition for loans and deposits in a low interest rate environment. This contributed to flat loan balances and a five point drop in Net Interest Margin.

However, the bank’s Managing Director and CEO, Jon Sutton, is optimistic about the second half, as he expects lending application volumes to pick up this year.

BOQ declared a fully franked interim dividend of 38 cps – which is unchanged from last year.

This morning, BOQ shares are tracking 1.8% lower at $11.53.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?