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Bank of Queensland returns to mortgage market growth

Summarised from 2 outlets · Updated 15 Oct, 07:02 · Archive

Bank of Queensland is stepping back into the mortgage market with aggressively priced owner-occupier loans through its digital-only brands.

Bank of Queensland announced a $250 million statutory net profit for the financial year ended August 31, up 88 per cent from a year ago when it took a $170 million goodwill writeoff. Cash earnings fell seven per cent to $358 million while its net interest margin climbed six basis points to 1.7 per cent.

Home loan lending dropped to $4.6 billion, down eight per cent from the previous year. However, the bank plans to grow this business through its digital-only brands ME and Virgin Money, with 88 per cent of home loans now originated through its digital channel.

Chief executive Rod Finch told analysts: 'As we've talked over previous periods, we step back while the economics weren't working for us in that mortgage portfolio. With those big structural and transformation pieces now in place, we're more confident stepping back into the market.' Analyst Brian Johnson noted that Bank of Queensland's ME brand was matching Macquarie with the most aggressive interest rates for owner-occupiers.

In recent years the bank has simplified its operations by closing branches and converting owner-managed locations to corporate ones. It now operates 102 branches across Australia, down from 147 three years ago.

Bank of Queensland returns to mortgage market growth
Image: Perth Now

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In this story: Bank of Queensland · ME · Virgin Money · Rod Finch · Macquarie · Australia

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