Analyst Note| Nathan Zaia |
Bank of Queensland’s fiscal 2021 cash profit beat our forecasts by 6.5%. Loan growth of 8% was stronger than our 5% forecast, but didn’t come scot-free, with a 3% increase in operating expenses higher than we expected. Profit increased 83% on last year to AUD 412 million, with large loan loss provisions booked last year and the acquisition of ME Bank flattering growth rates. Profit before loan impairments and ME Bank contributions were up a still solid 8%, which reflects the bank’s good loan growth and 4 basis point improvement in net interest margins, or NIMs.