BOQ "fitter" despite posting statutory loss
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Krystine Lumanta is a journalist with InvestorDaily, a Sterling publication.
Bank of Queensland (BOQ) has announced it will return to sustainable profitable growth despite posting a statutory loss after tax of $17.1 million for the 2012 financial year.
The loss was due to increased provisions and off-one legacy expense items, the company said in a statement to the Australian Securities Exchange.
In addition, it also posted a normalised underlying profit before tax of $443.5 million for the year, a slight drop from $447.4 million in the previous period.
However, BOQ had emerged as a "fitter" organisation this year after it achieved a return to profitability in the second half of 2012 with a statutory profit of $73.5 million, BOQ chief executive Stuart Grimshaw said.
"We've returned to profitability in the second half following a thorough review of BOQ's loan book, systems and processes.
"I believe we have reached a crucial turnaround point and I'm looking forward to the next 12 months."
The retail bank was now clearly in delivery mode after addressing the basics to become "operationally fit" and was focused on delivering better services for its customers, Grimshaw said.
BOQ will continue to focus on harnessing the strength and attributes of its personal service proposition in the digital age though multi-channel optimisation for all distribution channels, risk/return balance, operational excellence and a new executive leadership team, he said.
"We've reinvigorated BOQ's Business Bank to incorporate agribusiness, property and corporate customers and diversified our product capability through financial markets, equipment finance, debtor finance and insurance," he said.
"This strategy, while still at early stages, is beginning to bear fruit."