Bank of Queensland (BOQ) has reported a 38 per cent jump in statutory net profit after tax to $212 million for the half-year ending 28 February.
BOQ confirmed it will pay an interim dividend of 22 cents a share on 26 May, which represents a 53 per cent payout ratio for the first half.
The bank posted a 14 per cent rise in cash earnings after tax to $268 million, which BOQ CEO and MD George Frazis said reflected the ongoing business momentum through the half.
“Our goal to help more Australians into their homes continues to drive performance with the ME home loan book returning to growth in the period and BOQ and Virgin Money (VMA) brands showing continued strong growth at 1.8x system,” Mr Frazis said.
“Our refocus on helping family businesses has resulted in above market growth in SME of 2.5x system and corporate business lending of 1.2x system.”
Mr Frazis confirmed the bank continues to execute on its plan of digital transformation and the ME integration.
“We are a step closer to realising our bold strategy of building a truly multi-brand, cloud-based, digital retail bank with the launch of myBOQ joining VMA on the common core banking platform which enhances the customer experience.
“The integration program is well progressed with key milestones delivered on the accelerated timeline and within the committed expense profile.”
BOQ’s first-half net interest income (NII) decreased to $741 million, down 2 per cent from the corresponding period last year, driven by net interest margin (NIM) decline due to competition in new housing loans.
Non‐interest income increased 30 per cent to $90 million, on the back of a number of one-off revenue items including incentive income from an updated card services arrangement and a termination fee relating to a third party insurance provider.
BOQ’s purchase of ME Bank was finalised in June last year.
It is now expected to cost between $130 million and $140 million (pre-tax), with the majority to be incurred in the first two years.
“The acquisition of ME Bank is a key step in our strategy to be a compelling alternative to the big banks,” BOQ chair Patrick Allaway said at the time.
“It is a defining moment in the transformation of BOQ Group, which will benefit our shareholders, customers and people.”
