Bank of Queensland (ASX:BOQ) share price rockets higher after reporting profits fell, fully franked dividend held

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The Bank of Queensland (ASX:BOQ) share price has gained 54 cents or 5 per cent to $11.31 after reporting FY18 cash earnings fell two per cent to $372 million.

On a statutory basis, Bank of Queensland’s full-year profit has slipped five per cent, falling to $336 million despite a decrease in faulty loans.

Chief executive John Sutton was buoyant about an underlying revenue growth of two per cent, considering the “difficult environment” created by allegations exposed in the banking royal commission.

He said this rise achieved by an increase in lending and an improved net interest margin of five basis points.

“We have managed for the environment we are faced with, prioritising margin over growth,” Mr Sutton said.

Bank of Queensland will declare a flat final dividend of 38 cents, fully franked.

Looking ahead, Mr Sutton said that although the industry continued to face a number of headwinds, BOQ is focused on delivering its strategy.

“Our asset quality remains sound and signals the enhanced resilience that has been built into the Group’s balance sheet,” said Mr Sutton.

BANK OF QUEENSLAND’S FY18

* Profit down 5pct to $336m

* Earnings down 2pct $372m

* Final dividend flat at 38 cents, fully franked

With AAP

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au