Bank of Queensland Warns of Rising Bad Loans Amid Economic Uncertainty

0

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In the six months up to the end of February, the bank reported a total income of $793 million, a slight decrease from the $795 million recorded in the previous year. However, post-tax cash earnings increased by 6% to reach $183 million, driven by improved margins, reduced costs, and lower credit losses, surpassing the expected $165.7 million.

The bank's net interest margin, which measures the difference between the interest received by a bank and the interest it pays on deposits, rose to 1.57%, aligning with market forecasts. BOQ's managing director, Patrick Allaway, highlighted the bank's transition to a more streamlined, specialist bank offering a superior customer experience through its digital platform.

Allaway expressed confidence in the bank's strategy to shift its portfolio towards high-return segments and transform the retail bank into a scalable and cost-efficient digital entity. The changes aim to enhance customer experience and improve overall performance for stakeholders.

BOQ successfully converted all 114 owner-managed branches into corporate branches by March, incurring costs estimated between $115-$125 million for the full year. Despite ongoing challenges, the bank remains committed to delivering positive outcomes through strategic decisions.

Amid persistent cost-of-living pressures and anticipated prolonged high-interest rates, BOQ forecasts an increase in loan impairment expenses from historically low levels. The bank anticipates further cash rate easings in 2025, although the exact timing and extent remain uncertain.

The bank perceives improvements in the Australian economy during the half-year, bolstered by rising disposable household incomes, a robust labor market, and growing consumer confidence. Notwithstanding global geopolitical uncertainties, BOQ remains optimistic about its long-term prospects.

The Bank of Queensland declared an interim dividend of 18 cents per share, with shares climbing 4.7% to $6.81 by late morning.

Published:Wednesday, 16th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

New Partnership Aims to Reduce Electric Vehicle Costs for Australians

13 Feb 2026: Paige Estritori

In a significant move towards promoting sustainable transportation, the Clean Energy Finance Corporation (CEFC) has committed up to $60 million in partnership with Hyundai Capital Australia (HCAU) to make electric vehicles (EVs) more affordable for Australian consumers. - read more

Australians Embrace Hybrid Vehicles Amid Rising Environmental Awareness

13 Feb 2026: Paige Estritori

The Australian automotive market is witnessing a significant shift as consumers increasingly opt for hybrid vehicles, balancing practicality with environmental consciousness. Recent data from the Australian Automotive Dealer Association (AADA) and AutoGrab reveals that used hybrid car sales have more than doubled over the past two years, escalating from 6,868 units in October 2023 to 14,784 in October 2025. - read more

Australian Used Car Market Ends 2025 on a Softer Note

05 Feb 2026: Paige Estritori

The Australian Automotive Dealer Association (AADA), in collaboration with AutoGrab, has released the December 2025 Automotive Insights Report (AIR), revealing a significant downturn in the used car market as the year concluded. - read more

Plug-In Hybrid Vehicles Gain Momentum as Petrol Car Sales Decline in Australia

05 Feb 2026: Paige Estritori

The Australian automotive market is witnessing a significant shift in consumer preferences, with plug-in hybrid vehicles (PHEVs) experiencing a remarkable surge in sales, while traditional petrol vehicle sales continue to decline. - read more

Macquarie Bank Transfers $1.5 Billion Car Loan Portfolio to Allied Credit

28 Jan 2026: Paige Estritori

In a significant move within the Australian financial sector, Macquarie Bank has agreed to sell a $1.5 billion portfolio of car loans to Allied Credit, a leading independent financier in Australia. This portfolio encompasses over 50,000 car loans and is slated for transfer by the fourth quarter of 2025. - read more

ASIC's Findings Highlight Urgent Need for Reform in Car Finance Lending Practices

20 Jan 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has recently unveiled findings from its comprehensive review of the motor vehicle finance sector, highlighting concerning trends that are likely to prompt a tightening of lending practices across the industry. - read more

Affordable Electric Vehicles: New Low-Interest Loans for Eligible Australians

20 Jan 2026: Paige Estritori

The Australian government has launched a new initiative to make electric vehicles (EVs) more accessible to a broader segment of the population. This program offers low-interest loans to individuals earning less than $100,000 annually, as well as essential workers, facilitating the purchase of new and used EVs priced up to $55,000. - read more

Click for more Finance News