The Bank of Queensland has warned of the disclosure of cheap employee payments in addition to the financial hurdles caused by the Coronavirus pandemic, which has cost it millions.
In a statement to the Australian Stock Exchange Tuesday morning, the regional bank said it has committed $ 175 million for loan impairment expenses that will ruin its profits for the fiscal year 2020.
BOQ is expected to present its results on October 14, with $ 133 million in expenses related to costs associated with the economic impacts of COVID-19.
Another $ 11 million relates to missing employee benefits and issues related to the bank’s failure to pay adequate employee pensions.
The bank’s expected losses were driven by high unemployment, declining real estate prices and a prolonged economic recession.
The CEO of Bank of Khartoum, George Frazies, said the bank is committed to continuing to support customers despite the estimated losses of millions of dollars in its portfolio.
He said, “As we all know, this year was unprecedented, and BOQ is committed to supporting our customers throughout this period.”
“We are very excited to see many of our customers return to work and reopen their businesses and we will continue to work closely with those who need more help.”
The bank indicated missing payments related to people working under three of its corporate agreements from 2010 to 2018.
Its internal audit found “irregularities” in retirement payments paid to employees. The bank advised the FBI Ombudsman that it is working with third parties to investigate the full impact of the problem.
Mr. Frazes said the bank apologized for the failure of the bonus system and that correcting the problems was an “absolute priority”.
He said, “We will do this in the right way, and we will make sure that our people, past and present, receive every cent they deserve.”
Bank of Qatar notes that the total impairment expense is equivalent to 37 basis points of the total book value of the loan.
The bank also indicated that it will make a decision on dividend distribution to shareholders in announcing full-year results in October.