- Bank of Queensland has released its results for the 2019 financial year today, showing a 14 per cent decrease in cash earnings
- For the period of business, the company amounted $320 million in cash earnings after tax
- Despite its loses, the bank is still handing out dividends at 31 cents per share under CEO George Frazis, who is serving his second month in the position
- Shares in the company have dropped 1.71 per cent to trade at $9.49 per share
ASX 200-listed Bank of Queensland has had a significant drop in its cash earnings for the 2019 financial year.
Posting cash earnings after tax at $320 million, fresh CEO and Managing Director George Frazis asserts the bank is in good business despite the challenges ahead.
“Our capital is well positioned for ‘unquestionably strong’, we have a good funding position and our underlying asset quality is sound,” he said.
The banking giant attributed its lessened cash results to a tougher market for lending deposits and higher regulatory costs.
George assumed the role from interim CEO Anthony Rose in early September, who will leave the bank at the end of this year. George previously had worked at Westpac, NAB and St. George Bank.
Just a week ago, the bank also appointed Ewen Stafford as its new Chief Financial Officer and Chief Operating Officer.
“There are numerous opportunities ahead for a revamped BOQ and I will be working closely with the executive leadership team to complete our strategic and productivity review, with a market update on our plans in February 2020,” George Frazis continued.
Statutory net profits for the company also fell 11 per cent, sitting at $298 million. Cash earnings per share performed at 79.6 cents per share during the business period, a decrease of 16 per cent.
In addressing shareholders today, George outlined key goals for the company to lift its performance. The CEO aims to return to profitable growth, enhance the customer culture and simplify the business.
“The review will provide a lot more granularity on the contribution of these initiatives on our [fiscal 2020] performance and beyond,” he said.
“We expect lower year-on-year cash earnings in [fiscal 2020] with revenue and impairment outcomes in line with [fiscal 2019], higher post-Hayne regulatory and compliance costs, and increased operating expenses related to our investment in technology.”
Today, BOQ operates 160 branches across Australia.
“I am very focused on delivering sustainable growth and improved shareholder returns,” The CEO concluded today.
Shares in the company have dropped 1.71 per cent to trade at $9.49 per share