Cash profit has fallen. Bank of Queensland
Cash profit of Bank of Queensland has fallen.
First-half cash profit of Bank of Queensland has dropped two per cent to $175 million. There is strong competition for loans and deposits as well.
According to the local lender cash profit for the six months to February 28 has fallen. It is dropped from $179 million in the previous corresponding phase. On the other hand statutory net profit was down six per cent at $161 million.
So BOQ CEO Jon Sutton is confident that the slide will not affect the banks bottom line.
He said that for this financial year they are sure to increase 1 per cent to reach at $510 million for costs. Their underlying costs are fallen down from the previous half.
Mr Sutton also assumed that Australian Prudential Regulation Authority (APRA) may be looking at a lessening of macro-credentials for Mortgages.
He said that the regulator may come in and make all sorts of difference changes. Although he said that it is hard to speculate what they will happen in relation to any further macro-credential tightening.
He explained that they there is a notable move to tighten up some of their competitors back to where they are. They value out 100 per cent of their mortgages and they are watching a smart period of growth. It is mainly across owner-occupier and investor properties.