A massive surge in impairments has seen Bank of Queensland flag a $91m first-half loss.
The bank has announced it will seek to raise $450m in new equity to strengthen its Tier 1 capital position and "fund organic growth opportunities", but has warned a significant rise in impairments will see it report a $91m loss in the first half of 2012, compared to its $48m profit from the first half of 2011.
BoQ saw its impairments rise from $134m in the first half of last year to $328m in the first half of 2012, a result managing director Stuart Grimshaw said could be put down to natural disasters and Queensland's waning tourism market.
"Queensland has been negatively impacted by the flow-on effects of a downturn in tourism, and has endured recent natural disasters such as floods and cyclones," Grimshaw pointed out.
Nevertheless, Grimshaw promised a "prudent approach to capital and liquidity" in the bank's equity raising drive. He said the drive will see the bank increase its Core Tier 1 ratio from 6.4% to 8.6%. He also vowed that the bank would continue to target growth above system through the SME market, agribusiness and retail customers.
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