Bank of Queensland will pivot from its pursuit of a bigger slice of the mortgage market to the more profitable business bank division as it tries to turn things around.
In an environment where Australians are starved for competition,there are questions about where BOQ fits and how it will survive.
The Bank of Queensland will axe up to 400 jobs and acquire more than 100 franchised businesses in a move its chief executive Patrick Allaway says is aimed at simplifying the business.
As the number of customers falling behind on their repayments rises,the watchdog says too many people in hardship are finding it hard to get help.
The bank unveiled a cash profit of $172 million in the six months to February 29,down 33 per cent compared to the first half of last year.
Bank margins will continue to dwindle in the first half of this financial year,analysts say,as customers move their savings into higher-interest offerings.
Bank of Queensland shareholders delivered a blow to the company’s remuneration report as the bank warned of growing economic risks in the year ahead.
Bank of Queensland boss Patrick Allaway blames the economic cycle,margin pressures across the industry and higher cost of funding for its weaker results.
Regulators say Bank of Queensland has breached prudential standards and fallen short in its compliance with anti-money laundering laws.
Bank of Queensland chief executive Patrick Allaway says more customers will face financial stress as interest rate rises hit the economy.
The Bank of Queensland expects net profit of just $4 million following a $260 million hit to its bottom line,but will issue an early payout to bondholders.