Bank of Queensland posts $91m loss

The Bank of Queensland (BOQ) remains in a trading halt after announcing a $91 million half-year loss.

The bank plans to raise $450 million to strengthen its capital position.

BOQ managing director, Stuart Grimshaw, says a tourism downturn and recent flooding and cyclones had hurt Queensland.

“BOQ’s underlying performance was achieved against a backdrop of continued variability in the strength of the Queensland economy, which has negatively impacted the commercial and residential property market,” he says.

BOQ will issue 74 million new shares as part of the raising – accounting for about one third of the shares it currently has on issue. New shares will be equal to the old shares and will all receive a fully franked dividend of 26 cents, announced today.

There will be an institutional placement of about $150 million and existing shareholders will be offered about $300 million worth of new shares in an entitlement offer.

“This equity-raising will strengthen our balance sheet and provide Bank of Queensland with the capacity for continued growth,” Grimshaw said.

BOQ was trading at $7.30 on Friday. Source ASX.

Below: Bank of Queensland’s share price, and underneath, the volume of shares traded. Source: ASX