BOQ shares tumble on weak earnings result
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More news: Bank of Queensland shares have lost 4.5% and were trading at $5.52 at 12:10pm AEDT, after it posted poor full-year results. BOQ's earnings undershot expectations despite the bank forewarning of big-ticket liabilities on FY23's balance sheet last month.
Bank of Queensland trims dividend as full-year profit slides
The news: Bank of Queensland has cut its final dividend after full-year profit slid amid rising costs and after the lender took a major impairment against goodwill.
The numbers: Statutory profit for the year to 31 August sank 70% to $124 million, below analyst expectations, while cash profit fell 8% to $450 million. The results include a $200 million impairment of goodwill, $57 million costs for integration of ME Bank and $35 million in restructuring costs as part of its simplification program. The lender cut its final dividend by 3 cents to 21 cents a share.
The context: The lender said its result was reflective of industry margin headwinds from heightened competition across both lending and deposits, as well as higher costs along with investment in customer experience and digital transformation. It comes after a difficult year for the bank, during which it faced pressure from the anti-money laundering regulator and saw former CEO George Frazis depart.
What they said: “We recognise that this has been a difficult year for our shareholders and take accountability for the operational risk failings that led to the two Court Enforceable Undertakings. Our results reflect the market cycle and the business in transformation. We continue to invest through the cycle and traded some performance in FY23 for medium and long-term benefits,” newly appointed CEO Patrick Allaway said.
The source: ASX announcement
