BASEL: During his 20 years in banking, Bank of Queensland chief executive Jon Sutton has never witnessed a more competitive market for banking services.
He says the recent spike in 12-month term deposit rates combined with the competition for retail and commercial borrowers has placed pressure on BoQ’s net interest margin. In the year to August 31, BoQ’s net interest margin fell three basis points to 1.94 per cent.
The bulk of the pressure on the bank’s margin came from more competitive pricing of the bank’s new residential mortgage customers.
