Bank of Queensland to sell NZ asset portfolio (updated)

Bank of Queensland

01/02/2024 22:59

(Adds background and details in paragraphs 2,3 and 5)
       Feb 2 (Reuters) - Bank of Queensland  BOQ.AX  said on
Friday it has agreed to sell its New Zealand asset portfolio to
UDC Finance, as a part of its efforts to streamline the bank's
operating model.
    The NZ portfolio consisted of commercial loans, finance and
operating leases serviced by BOQ Finance (NZ) and BOQ Equipment
Finance, the company said.
    "This transaction is another step in our strategic
simplification program, exiting a non-core business and reducing
our operational complexity," CEO Patrick Allaway said in a
statement.
    As at Jan. 31, the size of the NZ portfolio was NZ$238
million ($145.94 million), the company said, adding that the
deal provides for the sale of the portfolio at 91% of book
value.
    The deal is expected to result in a post-tax statutory loss
on sale of about A$17 million ($11.17 million) to A$20 million
recognised in the first half of fiscal 2024 and upon completion
is expected to be broadly neutral to common equity tier 1
capital ratio, the company added.
    
    
($1 = 1.6308 New Zealand dollars)

($1 = 1.5221 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Shilpi
Majumdar)
 ((Himanshi.Akhand@thomsonreuters.com;))