BOQ chief executive George Frazis has noted numerous opportunities to revamp the financial institution.Credit:Peter Braig
The Brisbane-based lender said the year’s results reflected the challenging operating environment “characterised by slowing credit demand,lower interest rates,a rise in regulatory costs and changes impacting non-interest income.”
“In the recent past BOQ has not lived up to its full potential and has underperformed for its key stakeholders,including our shareholders. However,let me assure you,I am very focused on delivering sustainable and profitable growth and improved shareholder returns,” Mr Frazis said.
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The company also reported operating expenses had grown in the second half of the year due to an increase across the industry to meet heightened regulatory and compliance expectations.
Mr Frazis has signaled regulatory costs are set to continue increasing next year,as will the bank's investment in technology,creating difficult conditions for BOQ in 2020,
“We expect lower year-on-year cash earnings in FY20 with revenue and impairment outcomes in line with FY19,higher post-Hayne regulatory and compliance costs,and increased operating expenses related to our investment in technology,” Mr Frazis said.
Speaking to investors and analysts,Mr Frazis reiterated he was six weeks into the top job and that his immediate focus would be on strategic review due in February which would focus on making"a more sustainable business model with a clear strategy to return to growth".