Bank of Queensland’s (BOQ) latest half year results reveal a solid growth in lending and a more diversified loan book as a result of an expanding its mortgage broker channel.
BOQ's 1H15 results saw the housing book increase diversification with 57% of applications originating from outside of Queensland, largely driven by the broker channel which contributed $420 million of loan growth and accounted for 14% of settlements.
BOQ managing director and CEO Jon Sutton said the result showed the non-major was continuing to make steady progress in delivering its strategy.
“Strong foundations are now in place and we’re well into building a bank that is lower risk, lower volatility, and set up for sustainable growth,” he said.
“I am particularly pleased to see lending growth improve while the Bank’s risk settings, margins, balance sheet and capital position are all strengthening.”
Lending growth has now head back towards system levels, according to Sutton.
BOQ Specialist’s contribution to lending growth delivered $352 million in on-balance sheet mortgages while maintaining margins and credit quality across the portfolio. Sutton also announced that the group will relaunch mortgages within its subsidiary business, Virgin Money.
“We believe we can continue to drive growth through our existing strategy especially when you consider we’re still below our peers’ market share in the broker channel and we have further upside through BOQ Specialist, as well as Virgin Money Australia where we expect to launch mortgages within 12 months,” Sutton said.
Interim cash earnings after tax were $167 million for the six months to 28 February 2015, uo 19% from the prior comparitive half.