Australian Shares News Bank of Queensland (BOQ)

Bank of Queensland (BOQ) was established way back in 1874 and operates mainly in its home state of Queensland, with operations covering retail financial services and business banking.

Among the list of sectors on the ASX, BOQ is categorised as a bank stock, and like other bank stocks, it has been a weak performer in the Australian share market during recent weeks.

On 14 October, BOQ reported a 27% rise in FY10 net profit to $179.6 million, whilst cash profit improved 5% on-year to $197.1 million.

Net interest margin increased 4 basis points to 1.60%, with the group experiencing higher funding costs in the second half.

Helping to the growth in NIM was a 17% rise in net interest income, which was supported by balance sheet growth.

BOQ stated that its bad debt losses peaked in FY10, and it expects a rise in FY11 cash profit to $220m – $250m, with a 10% – 20% growth in dividends.

BOQ declared a final dividend of 52 cents, which was unchanged from a year ago, whilst its share price shed 1.1% on the day.