Bank of Queensland (ASX:BOQ)
cuts net interest margin (NIM) guidance following a business performance update ahead of its annual general meeting.
The bank expects a lower FY22 net interest margin than previously guided due to yield volatility, price competition and greater proportion of fixed rate mortgage lending across the industry.
The bank also reconfirmed guidance for at least 2 per cent positive jaws, which compares a bank’s income growth to operating expense growth. The company said growth momentum has continued throughout first quarter of 2022, with strong application volumes across both the housing and business lending portfolios.
“BOQ continues to execute on its strategy, digital transformation and the ME Bank integration. We remain firmly focused on delivering against our strategy to transform BOQ into a digital bank with a personal touch,” said CEO and managing director George Frazis.
Given ongoing focus on delivering positive jaws, FY22 expenses are now expected to be 1 per cent lower than FY21, reflecting additional productivity benefits, the bank said.
Shares in Bank of Queensland (ASX:BOQ)
are trading 4.2 per cent higher at $7.92.