Bank of Queensland boss Patrick Allaway blames the economic cycle, margin pressures across the industry and higher cost of funding for its weaker results.
Bank of Queensland boss Patrick Allaway has blamed the economic cycle, margin pressures across the industry and the bank’s higher cost of funding for its weaker results as its shares dropped to a 16-month low.
Shares in the BOQ slipped 7.4 per cent to $5.35 a share at the close and were 30 per cent lower over the year. ‘There may be a rate decrease towards the end of next year, but it will be a more difficult period for consumers in 2024.’Allaway said margin pressure was an “industry phenomenon” as banks competed to meet repayments on the Reserve Bank’s term funding facility lending, the bulk of which is set to be repaid in the next six months, pushing up the cost of funding.
While BOQ grew its retail deposits by $3.1 billion, Allaway warned that interest rates would probably stay higher for longer.
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