(Reuters) – Australia’s Bank of Queensland warned Wednesday that the bank’s net interest margin would fall by between 5 and 7 basis points in 2019 due to fierce competition, low interest rates environment, and sent its shares down 4%

Brisbane-based regional banks were the worst percentage losers in the benchmark index.

Bank of Queensland stated in a statement that “there may still be uncertainty related to COVID-19 over this next year.”

A dividend payout ratio of 60-75% is the goal of this lender for 2022. The common equity ratio 1 ratio will be comfortably over 9.5%, which is closely watched as it measures spare cash.

Citi stated in a note that the bank’s outlook for 2022 was “largely consistent with market expectations”.

According to Citi, the company’s cash net profit after taxes increased 83% to A$412million ($302.49million) in the twelve months ended August.

BoQ saw its operating expenses rise 12% to A$684 Million in the past year, partly due to higher business volumes. The company anticipates that it will grow by 3% on an underlying basis for financial year 2022.

The final dividend was 22 Australian cents per share. This is an increase from the 17 Australian cents it declared during 2021’s first half.

($1 = 1.3620 Australian dollars)