News: BOQ UPDATE 1-Bank of Queensland to sell NZ asset portfolio

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Feb 2 (Reuters) - Bank of Queensland (BOQ) said on Friday it has agreed to sell its New Zealand asset portfolio to UDC Finance, as a part of its efforts to streamline the bank's operating model.

The NZ portfolio consisted of commercial loans, finance and operating leases serviced by BOQ Finance (NZ) and BOQ Equipment Finance, the company said.

"This transaction is another step in our strategic simplification program, exiting a non-core business and reducing our operational complexity," CEO Patrick Allaway said in a statement.

As at Jan. 31, the size of the NZ portfolio was NZ$238 million ($145.94 million), the company said, adding that the deal provides for the sale of the portfolio at 91% of book value.

The deal is expected to result in a post-tax statutory loss on sale of about A$17 million ($11.17 million) to A$20 million recognised in the first half of fiscal 2024 and upon completion is expected to be broadly neutral to common equity tier 1 capital ratio, the company added. ($1 = 1.6308 New Zealand dollars)

($1 = 1.5221 Australian dollars)