Australia’s Bank of Queensland warns of decline in net interest margin, shares fall

Investing.com | Oct 12, 2021 at 10:01 PM
  • Australia’s Bank of Queensland on Wednesday warned that its net interest margin in the coming year would decline by 5 to 7 basis points due to stiff competition and a low interest rate environment, sending the lender’s shares down 4%.
  • The lender is targeting a dividend payout ratio in the range of 60%-75% of cash earnings for 2022, and expects common equity tier 1 ratio, a closely watched measure of spare cash, to remain comfortably above 9.5%.
  • BoQ’s operating expenses for the year jumped 12% to A$684 million driven in part by higher business volumes, and the company expects it to grow 3% more on an underlying basis in financial year 2022.