Australian one dollar coins surround a U.S. one dollar note in this photo illustration taken in Sydney July 27, 2011. Australian consumer prices rose by more than expected last quarter while underlying inflation proved alarmingly high, reviving pressure f
Australian one dollar coins surround a U.S. one dollar note in this photo illustration taken in Sydney July 27, 2011. Australian consumer prices rose by more than expected last quarter while underlying inflation proved alarmingly high, reviving pressure for an increase in interest rates and lifting the local dollar to a 29-year peak. Reuters/Tim Wimborne

Bank of Queensland has recorded 22 percent annual profit of AU$318 million in 2015, which is significantly more than the net profit of 2014.

Focus on increased margin has led BOQ reach its full-year cash profit goal. With the increase in the number of migrants in the northern state, the lender has targeted houses with lower prices to generate more profits in the home loan lending sector in future.

After settling the tax for a year to Aug. 31, BOQ recorded a cash earning of AU$357 million, which was 19 percent hike from the profit of AU$261 million in 2014. The bank’s Specialist service has helped it to make 1.97 percent increase in making profits on loans with a significant improvement to a 15 basis point so far as net interest margins were concerned.

BOQ’s cash earnings per share has grown from nine to 97 percent per share, thereby offering it is a fully-franked final dividend worth 38 cents, which it is ready to pay to its shareholders on Nov. 24. When this fully-franked dividend is collectively counted with the interim dividend, the yearly payable dividend accounts to 74 cents each share.

“BOQ has now delivered record results for five successive halves, a significant achievement in an environment of low growth and changing regulations,” chief executive of the bank, Jon Sutton, said. “Though we have more work to do, particularly around returning to higher levels of asset growth, most of our key financial metrics are moving in the right direction.”

He added, "Overall we remain a bank that has come a long way in recent years and we are confident that we are well positioned for sustainable growth into the future.”

Hiring brokers has also proved a crucial step for BOQ as it enhanced total lending to seven percent and also exposed 50 percent of the loan providing services outside Queensland for the first time. Sutton claimed the bank has begun taking relevant foot forward to analyse the risk weighing needs associated with mortgaging properties until the government indicates proceeding with the Financial System Inquiry.

“We will continue to monitor the Basel process and assess the benefits of advanced accreditation under Basel IV. We are also encouraged about the prospects of a faster path to accreditation,” the chief executive said.

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