Bank of Queensland’s chairman says the regional lender has not performed as well as hoped, but he is optimistic its retail banking business can be reinvigorated over the next year.
Roger Davis said in a letter to shareholders that customer acquisition and returns have been hampered by lending processes and regulatory uncertainty, while costs have been driven up by the need to respond to the financial services royal commission findings.
“Although the current earnings profile is not at the level that we aspire to, Mr Davis said on Wednesday.
“There is a lot to be optimistic about in terms of the progress made through our niche market strategies, Virgin Money Australia, and the opportunity of reinvigorating the retail banking business in the coming 12 months.”
In April, the regional lender reported an eight per cent slide in first-half cash earnings to $167 million.
Its cash profit for the six months to February 28 had fallen from $182 million a year ago, while statutory net profit after tax decreased by 10 per cent to $156 million.
The lender cut its interim dividend by four cents to 34 cents per share, fully franked.
At 1028 AEST, shares in BOQ were 8.0 cents or 0.87 per cent lower, at $9.11.