23 July 2012 6:53am

Deutsche Bank reaffirmed its Buy recommendation on Bank of Queensland last week, after BOQ announced the sale of a portfolio of non-performing loans.

In February, BOQ had announced plans to sell A$230 million of commercial property loans. At the end of June it said the sale would not go ahead, but last week it sold $156 million of loans to Goldman Sachs.

The four loans in the portfolio included BOQ’s three largest impaired assets, secured by shopping centres in Queensland and Victoria.

Deutsche said the sale was a positive development for BOQ because it reduced the...