BoQ signals profits to be hit by extra costs after job shedding
Bank of Queensland has revealed it cut a large number of jobs and shed office space following its takeover of ME Bank.
BoQ posted a net profit of $4 million. Photo: ABC
The Brisbane-based bank also revealed an extra $79 million in costs would be added to its full-year profit.
It said $35 million was for its restructuring costs and $44 million for its integration of ME Bank.
The restructuring costs relate to 250 redundancies costing $25 million. There was another $11 million in property-related impairments after it consolidated its corporate office floor space.
The bank said there were $72 million in synergies from the ME integration of which $25 million would be included in the 2023 accounts.
The bank also said there would be another $17 million impact from a restatement of the weighted average life calculation of the ME Bank housing loan portfolio. However, there was a decrease in loans and advances of $24 million and a decrease in the tax liability of $17 million.
It follows a $200 million impairment to goodwill announced in the BoQ half-year result and a $60 million provision for its integrated risk program.
BoQ shares fell 0.5 per cent this morning when the market opened.
