The Bank of Queensland has joined its larger peers in slicing its provisions because of the improved economic outlook.
The bank told the ASX on Tuesday of a $75 million drop in collective provisioning for the 2020-19 year.
The bank this morning said the reduction – set to be unveiled in its next APRA Basel III Pillar 3 report – also includes improvements in data quality relating to collateral.
“Today, Australia is experiencing strengthening business and consumer confidence driving our economic recovery, supported by strong housing growth, lower unemployment rates and increasing business investment,” BoQ chief executive George Frazis said in the statement.
“The reduction in the collective provision during the quarter reflects this improvement in the current economic environment. We continue to prudently manage our provisions to ensure we are well covered for any potential lifetime losses arising from COVID-19.“
BoQ expects to release the May 2021 APRA Basel III Pillar 3 report on or before July 26.
The Big Four banks – Commonwealth, NAB, ANZ and Westpac – have all returned hundreds of millions of dollars from their provisions so far in 2020-19 with the Commonwealth likely to announce a substantial write back in its full year (June 30) results in early August.
