The Bank of Queensland released a trading and earnings update today, ahead of the half year results on 11 April 2019. Their shares dropped significantly and are ~18% lower than a year back.
They said the cash earnings will be in the range of $165-170m, compared with 1H18 cash earnings after tax of $182m.
This is driven by a fall in non-interest income, down $8-10m that $75m in 1H18, thanks to lower fee, trading, insurance and other income lines.
Plus net interest margin will be in the range 1.93% to 1.95% compared with 1.97% in 1H18, and will be around $475m.
There will be more non-recurring expenses, so expenses will be higher.
Loan impairments are expected to be int eh range of 11-13 basis points of gross loans. They say underlying quality remains good.
CET1 capital will be above 9.1% reported last time.
The say conditions will remain challenging with an increasing regulatory burden, including the outfall from the Royal Commission.
