MELBOURNE (Standard&Poor's) April 7, 2004--Standard&Poor's Ratings Services said today that the Bank of Queensland Ltd.'s (BoQ; BBB/Stable/A-2) reported earnings growth for the half year to Feb. 29, 2004, was strong, with post tax profits rising 32% to A$28.1 million on the corresponding period in the previous fiscal year. Key factors supporting the increase were very strong loan growth (75% increase in housing loan approvals and 107% growth in business lending), and the progressive realization of cost synergies stemming from the acquisition of UFJ Finance Australia Ltd., which offset a contraction in interest margins due primarily to higher wholesale funding costs. Strategically, BoQ is on tract to meet its branch expansion targets, which will provide a robust
