Bank of Queensland posts $91m first half loss
Provisioning for bad commercial property loans has seen Bank of Queensland post a statutory loss of $91 million for the first half of 2011-12.
The bank initially flagged its loss on 26 March, when it announced a $450 million capital raising.
Bank of Queensland set aside $328 million for impaired loans for the first half of 2011-12, up from $134 million in the prior corresponding period.
Of the $328 million, $166 million was for specific impairments - along with a $160 million collective overlay provision for any further deterioration, according to a Bank of Queensland spokeswoman.
The bad loans were primarily for commercial properties on the Gold Coast and the Sunshine Coast, said the spokeswoman.
The institutional component of the $450 capital raising was completed on 28 March, raising $288 million - and the bank expects to raise around $162 through the retail component of the capital raising, which will close on 24 April.
Bank of Queensland managing director and chief executive Stuart Grimshaw said the capital raising would position BOQ as "one of the strongest Core Tier 1 banks in Australia today".
"Our prudent and robust approach to collective loan provisioning will enhance protection against any further deterioration in the Queensland economy," Grimshaw said.
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