Bank of Queensland (BOQ) drink their medicine
Bank of Queensland (BOQ) -7.24%
Announced items to impact the full year results today, taking on provisions of $369m for the second half alone. Of that, $123m was set aside as a result of COVID impacts vs just $10m at the first half result earlier in the year. The substantial increase takes into account updated employment forecasts as well as a longer downturn in economic activity and house prices with the provision to account for the expected losses over the life of the current loan book as a result of the changes. The provisions will impact CET1 by 39bps, but is expected to be largely offset by “capital generation” (cash earnings) such that the CET1 will finish the year “comfortably above the target range of 9.0% - 9.5%.” We prefer the big banks.
Bank of QLD (BOQ) Chart
