Bank of Qld profits fall, dividend slashed

Bank of Queensland has posted a fall in full-year profit, due to the economic and social impact of the coronavirus pandemic, but sees better days ahead.

Net profit came in at $115 million for fiscal 2020, down 61 per cent.

The bank’s preferred net cash earnings result was $225 million, down 30 per cent.

“Our FY20 financial performance has been impacted by both COVID-19 and by a number of strategic foundational investments,” CEO George Frazis said on Wednesday.

Looking ahead, Mr Frazis said the bank had enough provisioning to protect its portfolio from the impact of coronavirus.

“Given the [federal] government’s stimulus and its good handling of COVID-19, there is potential upside opportunity should the economy recover at a faster rate than currently forecast.

The federal budget released earlier this month predicted the economy would contract by 1.5 per in 2020/21 before expanding by 4.75 per in 2021/22.

But shareholders will get a much lower dividend this year.

BoQ will only pay 12 cents per share, well down from 65 cents in fiscal 2019.

Meanwhile, BoQ announced the sale of its St Andrew’s Insurance business for $23 million to private investment vehicle Farmcove Investment Holdings.

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