Qld bank sees credit stress ahead as economy slows
Bank of Queensland has played up the success of its digital arm, even as it reported a fall in profit ahead of more expected interest rate hikes.
One of Australia’s leading regional banks has warned the economy will likely slow in the months ahead, after posting a lower profit as higher credit expenses weighed.
Bank of Queensland made a net profit of $136 million in the first half of its financial year, down 20 per cent from $171 million previously.
The bottom-line result was worse than market predictions of around $169 million, as cash earnings dipped by four per cent to $176 million.
Chief executive Rod Finch said he was focused on simplifying the business, pointing to its digital banking offering that’s attracted more new customers, and ongoing cost management.
Looking ahead, the bank expects to see a moderation in economic growth in the second half of its financial year.
“Consumer and business confidence continues to be weighed down by elevated inflation, increasing cash rates and uncertainty arising from the Middle East conflict,” it said.
“It is expected that inflation concerns will lead to additional cash rate increases through the remainder of calendar year 2026.”
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Mr Finch acknowledged there was economic uncertainty ahead, but said the bank had “strong financial and operational resilience”.
“BOQ is well-positioned to navigate the current conditions and support our customers and the broader economy,” he added.
During its first half, Bank of Queensland booked a loan impairment – or bad debts – expense of $20 million, up from $3 million in the same period last year.
The bank will pay a 20 cent dividend for the six months ended February 28, up from 18 cents last time.
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