Powered by MOMENTUM MEDIA
subscribe to our newsletter
BOQ recognised for low-risk mortgage strategy

BOQ recognised for low-risk mortgage strategy

Bank of Queensland’s restored focus on “sustainable” home loan growth has contributed to a stable credit outlook for the group, according to Standard & Poor’s (S&P).

The credit ratings agency affirmed its A- long-term issuer credit rating and A-2 short-term issuer credit rating for BOQ, listing the long-term rating as “stable”.

S&P said its ratings reflected the regional bank’s improved business position, strong capitalisation and enhanced asset quality to a level that is consistent with its peers.

Advertisement
Advertisement

“Over the last two years, the bank has delivered sustainable loan growth, both organically and supported in part by its acquisition of BOQ Specialist,” the agency said.

“The business position upgrade is characterised by the bank’s return to system-level loan growth as well as improved deposit growth over the last six months in particular.

“These outcomes are reflective of the continued successful rollout of BOQ’s multi-channel distribution strategy, which has generated business momentum and increased new business volumes per channel, including the expansion of the bank outside of its home state of Queensland.”

S&P said BOQ’s stable outlook also reflected the bank’s restored focus on low-risk residential lending as well as its exit from a number of higher risk commercial banking activities.

[Related: BOQ adds $2bn to loan book amid market ‘challenges’]

BOQ recognised for low-risk mortgage strategy
mortgagebusiness

 

Latest News

The change in the credit environment following the banking royal commission is not a result of any change in law or regulatory intervention,...

The results of the federal election are in. We outline what the new government’s focus will be for the mortgage industry and property mark...

The specialist lender has priced its third residential mortgage-backed securities issuance of 2019 at $750 million. ...

FROM THE WEB

podcast

LATEST PODCAST: How the mortgage sector will be impacted by the federal election

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.