News: Bank of Queensland settles Storm proceedings

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Bank of Queensland Limited (ASX:BOQ) expects to take a $22.1 million hit after settling all remaining proceedings from the collapsed Storm Financial.

 

The Brisbane based regional lender has struck a deal to settle proceedings brought against it by Australia’s corporate watchdog on behalf of borrowers advised by Storm Financial.

 

The $22.1 million net impact includes all legal costs and an additional provision for remediation costs. 

 

The gross payment of $19.7 million will settle the Australian Securities and Investment Commission’s (ASIC) proceedings of which $17 million will be paid to Bank of Queensland customers. 

 

Acting Bank of Queensland boss John Sutton says the company is pleased to have reached a resolution to this long-running issue and the group will now work towards providing certainty to the customers who were involved. 
 

Bank of Queensland reported a net profit of $135 million in the six months to the end of February 2014.