Bank of Queensland today posted record growth in its interim results despite a difficult environment.
The bank reported net profit after tax of $65.3 million, an increase of 33% on the prior comparable period.
But it said its net interest margin dropped from 1.85% in the first half of 2007 to 1.62%in the first half this year.
Offsetting this to some extent, its cost to income ratio also dropped from 64.0 per cent to 58.7 per cent.
The company said the result comes on the back of ongoing lending growth and retail deposit growth.
“We continue to grow well above system in both lending and deposits, without sacrificing asset quality,” BOQ managing director David Liddy said today.
“Despite the recent market volatility, BOQ maintains strong asset quality with a focus on well-secured housing and SME lending, and a low level of significant corporate exposures,” he said.
“It is no surprise that net interest margin has reduced, reflecting margin pressure in the sector.”
Bank of Queensland declared an interim ordinary dividend of 35 cents per share, an increase of 3 cents.
Shares in BOQ fell 35 cents to $15.75.
