BOQ raises the bar

Bank of Queensland (BOQ) has delivered a 33% increase in first half profits. BOQ while noting issues relating to the credit crunch, has achieved well above average system growth in both mortgages and deposits. However the margin BOQ is earning has narrowed with the higher costs of liquidity and funding reducing the margin by 23 basis points over the period. Loan impairment decreased marginally reflecting BOQ's lending book primarily being residentially based. BOQ noted however increasing interest rates would begin to affect some customers. Argo Investments executive of investment's Chris Hall noted that the result was "solid".

Source: The Australian Financial Review