Bank of Queensland shares have skidded after the bank said it expects its earnings for the half-year to drop between 6 and 9 per cent as it makes less money on non-interest income.
The bank said in an update on Monday it expects to report earnings in the range of $165 million to $170 million, compared to $182 million a year ago.
Most of decrease ‘is due to continued downward pressure across fee, trading, insurance and other income lines,’ Bank of Queensland said.
At 1103 AEDT the bank’s shares were down 5.73 per cent, or 57 cents, to $9.38, a two-month low.
‘Looking forward to the second half, market conditions are expected to remain challenging.’
The bank expects to face increased costs complying with regulatory requirements and expectations from the financial services royal commission.
Bank of Queensland will on April 11 release its results for the half-year that ends February 28.