Bank of Queensland (ASX:BOQ) has posted a 30 per cent decline in cash net profits for FY20 to $225 million.
The Brisbane based bank says this was largely the result of the $133 million COVID-19 collective provision.
The business will resume paying dividends after a COVID-19 pause, despite the sharp decline in annual profit.The bank has declared a full-year dividend of 12 cents per share an 82 per cent decline from FY19.
Managing Director and CEO George Frazis says while the potential impacts of COVID-19 remain uncertain, the bank’s prudent collective provision sees it well placed to withstand anticipated lifetime losses arising from COVID-19.
The bank has also inked a deal to sell its St Andrew’s Insurance business to Farmcove Investment Holdings $23 million. The transaction is expected to result in an indicative post-tax statutory loss on sale of approximately $27 million to $30 million.
Shares in BOQ (ASX:BOQ) are trading 2.97 per cent higher at $6.59.