19 October 2012 6:46am

The severity of competition for term deposits put a brake on the return to profit of Bank of Queensland over the half year to August 2012. The bank got no lift in profit from repricing home loans and other loans during the half.

Between March and June, BOQ increased the spread between its variable home loan rate and the Reserve Bank of Australia cash rate by 25 basis points.

Lending losses forced management to take a more realistic approach, reversing efforts to seek a public relations benefit by cutting consumer rates in line with RBA rate reductions in October and November...