The Bank of Queensland smashes its full year profit with a record result

The Gold Coast. Matt Roberts/Getty Images

The Bank of Queensland posted a 19% rise in full year cash profit to $357 million, a record result which beat expectations by about $4 million.

Income was up 17% to $1.087 billion and statutory profit after tax was up 22% to $318 million.

A final dividend of 38 cents a share, up two cents, was declared.

Total lending increased 7% to $41 billion as the bank expanded it distribution channels, including home loan brokers.

The bank is fast becoming a national entity, with total lending in Queensland falling below 50% of the bank’s business for the first time.

This chart show the rapid growth of the loan portfolio, with the geographic spread:

CEO Jon Sutton says the bank has delivered record results for five half years in a row.

However, he says the outlook for the economy is below trend and business and consumer confidence is likely to take some time before rising again.

“Though we have more work to do, particularly around returning to higher levels of asset growth, most of our key financial metrics are moving in the right direction,” he says.

Economic performances are mixed with Queensland and Western Australia still feeling the impact of the mining slow down.

“Queensland house prices are still affordable and, in time, this is likely to result in increasing net migration, further boosting the State economy,” he says.

The bank’s shares jumped 8% to $12.55 on the back of the results.

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