Bank of Queensland shares fall on dividend cut, profit plunge

Bank of Queensland

11/10/2023 01:36

By Echha Jain
       Oct 11 (Reuters) - Bank of Queensland  BOQ.AX  shares
fell nearly 5% on Wednesday, as the lender cut its dividend
after annual profit plunged by about 70% amid depressed mortgage
lending, and flagged margin pressure.
    Shares of the Australian regional lender declined as much as
4.7% to A$5.51 by 0005 GMT and looked set to post their worst
day since May 31 if losses held.
    BOQ logged a statutory net profit after tax of A$124 million
($79.79 million) for the year ended Aug. 31, compared with A$409
million a year earlier. It cut its final dividend to 21
Australian cents per share from last year's 24 Australian cents
apiece.
    Net interest margin fell to 1.69%, compared with a restated
2022 number of 1.71%. The bank recorded a one-off impairment
charge of more than A$300 million, which also hit its earnings.
    The small-cap lender expects revenue and margin pressures to
continue into 2024 fiscal year, reflecting credit growth and
competition, while flagging a possible low single-digit cost
growth.
    "A very weak result, with the likelihood of further negative
revisions to FY24 consensus expectations," analysts at Citi said
in a note, adding that the management would have a "tough task
in building credibility in their medium-term productivity
story."
    "We recognise that this has been a difficult year for our
shareholders and take accountability for the operational risk
failings," BOQ CEO Patrick Allaway said in a statement. 
   
($1 = 1.5540 Australian dollars)

 (Reporting by Echha Jain in Bengaluru; Editing by Subhranshu
Sahu)
 ((Echha.Jain@thomsonreuters.com;))