Bank of Queensland has acknowledged “irregularities” in staff salary and superannuation payments, and has called in a consultant to assist with analysis and remediation.
BOQ announced yesterday that it has already paid A$2.4 million to the Australian Taxation Office as part of the Superannuation Guarantee Amnesty.
It will include an expense of $11 million (the $2.4 million already paid plus a provision of $8.6 million) in its 2019/20 accounts. Its results will be announced on October 14.
The bank said it is yet to determine the full impact of its errors.
Commonwealth Bank, NAB and Westpac have all reported problems with salary underpayments.
The Finance Sector Union issued a statement yesterday saying it raised concerns with BOQ about unpaid superannuation 18 months ago. It said it is disappointing that the bank did not follow through with a payroll audit at the time.
The FSU put the number of underpaid workers at the bank at 750. It said it was unacceptable that staff would have to wait as long as March next year to have their underpayments fixed.
The FSU said BOQ has “serious problems” with its payroll system.
BOQ also announced that it will include an impairment expense of $175 million in its accounts for the year to August 2020, which is around 37 basis points of gross loans. The COVID-19 related part of that expense of $133 million.
This compares with an impairment expense of $74 million in 2018/19. BOQ will report its full year results on October 14.
The COVID-19 provision was just $10 million in the first half. Several analysts said the amount was way too little.
The second half provision is $123 million – “the result of updated economic forecasting since our first half reporting.” The bank said it had increased its probability weightings to the downside.
The bank currently has 12 per cent of housing customers and 16 per cent of SME customers on a relief package, the highest levels in the banking sector according to a recent APRA report.
Evans and Partners analyst Matthew Wilson said BOQ’s ratio of gross loans to provisions is well above the major banks and other regionals.
Wilson also said the bank was unlikely to declare a dividend when it reports its results.