Bank of Queensland (ASX:BOQ) has announced its FY24 results, reporting a significant rise in statutory net profit after tax to $285 million, a 130% increase from FY23. However, cash earnings after tax saw a 24% decline to $343 million, reflecting challenges in a competitive lending market and rising operational costs.
BOQ’s net interest margin decreased by 13 basis points to 1.56%, and housing lending contracted by $944 million, a 2% drop from the prior year. Despite these headwinds, business lending grew by $323 million, demonstrating the bank’s focus on higher-returning assets.
Managing Director and CEO Patrick Allaway commented, “Today’s result demonstrates the Group’s continued execution of our strategic initiatives against a difficult backdrop.” He added, “We will continue to leverage the strength of our business bank, accelerating growth in specialist segments where we have competitive advantages.”
On the digital front, BOQ reported a 1% rise in customer deposits, driven by digital deposits increasing by $1.5 billion. The company’s transformation strategy remains a focus, with efforts to streamline distribution channels and enhance margins well underway.
The bank declared a final fully franked dividend of 17 cents per share, bringing the total FY24 dividend to 34 cents per share.