The Bank of Queensland Limited (ASX: BOQ) share price could be on the move on Tuesday after the release of a business update ahead of its annual general meeting.
How is Bank of Queensland performing?
Bank of Queensland has started FY 2021 positively and is currently on track to deliver on the outlook it provided with its full year results.
The bank’s Managing Director and CEO, George Frazis, commented: “BOQ continues to execute on its transformation program with the family and friends phase 1 launch of the Virgin Money digital bank going live this week. We reconfirm the FY21 outlook for BOQ to deliver broadly neutral jaws.”
Broadly neutral jaws means that its revenue will increase broadly in line with costs. Positive jaws would be if its revenue was growing quicker than costs and vice versa for negative jaws.
Management also provided an update on its COVID-19 banking relief package deferrals.
According to the release, at the end of November, Bank of Queensland had 2,500 housing loans remaining in deferral with balances of $889 million. These balances represent 3% of its housing loan portfolio.
In addition to this, the bank had 3,300 small to medium sized business (SME) loans remaining on deferral with balances of $390 million. These balances also represent 3% of its total SME lending.
This represents an 80% and 82% reduction, respectively, since the end of June. At that point there was $4.5 billion of housing loans in deferral and $2.7 billion of SME loans in deferral.
Mr Frazis commented: “It is really pleasing to see the vast majority of our customers who accessed the banking relief package resuming repayments. We will continue to work with the remaining 3% of customers still accessing our banking relief packages to support them in their recovery.”
The bank remains committed to supporting customers throughout the challenging period. It advised that it is providing a range of options to customers as they reach the end of their loan deferral periods.
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