BOQ rewards investors after $378m profit

AAP | 12 Oct 2017

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SYDNEY - [AAP] Bank of Queensland (ASX: BOQ) has lifted full-year cash profit 5 per cent to $378 million and declared a special dividend after reporting strong second half lending growth.

Home loan lending grew by 2 per cent in the second half and BOQ's strong capital position allowed it to declare a flat final dividend of 38 cents and a special dividend of 8 cents, both fully franked.

Statutory profit for the 12 months to August 31 rose 4 per cent to $352 million and managing director Jon Sutton said the second-half performance gives BOQ momentum heading into FY18.

"The second half largely played out as we said it would at our first half result," Mr Sutton said. "Lending growth improved in both the housing and commercial loan portfolios."

Mr Sutton said he was comfortable with the asset quality of the loan portfolio, which showed no signs of systemic stress.

BOQ's common equity tier one capital ratio improved by 0.1 percentage points over the second half to 9.39 per cent, and is expected strengthen by another 20 to 25 basis points over the first half of 2018.

Mr Sutton said that that meant BOQ had additional flexibility for capital management such as the special dividend, which takes BOQ's full-year payout to 84 cents per security.

Mr Sutton said BOQ still had flexibility to explore other options for capital management in the future.

BANK OF QUEENSLAND'S FY17

* Cash profit up 5pct to $378m

* Net profit up 4pct to $352m

* Net operating income down 0.8pct to $1.08bn

* Final dividend flat at 38 cents, fully franked

* Special dividend of 8.0 cents, fully franked

 

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