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ISCOVER
Steven Cross
Plummeting Queensland property prices have been being blamed by the Bank of Queensland (BOQ) for its $91 million loss for the six months to 29 February.
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The bank’s first loss in over 20 years stunned market analysts yesterday, especially after recording a profit of $48 million for the six months prior.
According to the Real Estate Institute of Australia’s figures, median house prices have been dropping in Brisbane since September 2009. In 2011, Brisbane saw a 5.6 per cent plunge in property prices.
The bank has announced plans for a $450 million capital raising to strengthen its balance sheet and increase its core tier one ratio from 6.4 per cent to 8.6 per cent.
The bank plans to sell about 74 million new shares, about one-third of the stock on issue.
