Wild weather hits BOQ profits
Bank of Queensland (BOQ) has reduced its expected profit range for the 2011 financial year by $35 million after the flooding and cyclone that hit Queensland.
The drop in expected profit is not surprising given more than 60 per cent of BOQ’s business is in Queensland, with the bank now expecting profits somewhere in the region of $175 to $195 million.
Managing director David Liddy said BOQ had increased its provisioning levels for the first half of the year by $45 million as a result of a one-off management overlay due to weather-related factors and prevailing economic conditions.
“Given these one-off charges, the board may need to review the projected dividend growth,” he said.
Despite this, Liddy said he expected to see asset growth accelerate in the 2012 financial year as the rebuilding work in flood-affected areas gains momentum and conditions start to improve.
“In fact, we have earmarked an additional $2 billion for new lending for this rebuilding in Queensland in the next 12 to 18 months,” he said.
BOQ’s interim results and dividend will be released to the market on 14 April, 2011.
Recommended for you
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
In this week’s episode of Relative Return Unplugged, AMP’s chief economist, Shane Oliver, joins us to break down Labor’s budget, focusing on its re-election strategy and cost-of-living support, and cautioning about the long-term impact of structural deficits, increased government spending, and potential risks to productivity growth.
In this episode of Relative Return, host Laura Dew chats with Mark Barnes, head of investment research, and Catherine Yoshimoto, director of product management, from FTSE Russell about markets in Donald Trump's second presidency and how US small caps are faring compared to their large-caps counterpart.
