First full-year loss by an Australian bank in 20 years

by Caroline Dann08 Oct 2012

Bank of Queensland (BoQ) is poised to post a full-year loss, the first time an Australian bank has done so in 20 years.

 
On Friday, BoQ said it expected to post a loss of up to $20.6m for the year up to August 31st. 
 
It said the struggling south-east Queensland property market, and a large increase in the bank’s provisions for bad debts, was a major contributor.
 
"The bank continues to be hurt by its over exposure to a Queensland economy and its uneven property market," Patersons analyst Tony Farnham said.
 
BoQ has already posted a$90.6m loss in the first half of the year.
 
However, the bank is also one of few lenders to pass on the RBA’s rate cut last week, slashing 20 basis points from its rates.
 

COMMENTS

  • by Coast Broker 8/10/2012 10:25:05 AM

    Well maybe if the Bank of Queensland played in the Broker Market their loss would be less.

  • by Brian Broker 8/10/2012 10:55:07 AM

    I don't think they should be blaming the property market. They are renowned in South East Qld for over-valuing properties and lending when other banks will not. Relying on only their own resources rather than remaining in the broker market will also have limited their access to the full range of borrowers available. If their invovement with Storm Financial is any indication you can see the quality of the business they attracted.

  • by Dean 8/10/2012 11:00:41 AM

    BoQ were very early to ANNOUNCE it will pass on 20 bpts of the the RBA rate cut but it is not EFFECTIVE Friday 19 October. BoQ standard variable rate will then be 6.71% and still one of the most expensive in the market.