Shares of Australia’s Bank of Queensland (ASX:BOQ) have struggles as the stock fell by as much as 5.5% down to an alarming A$5.4.

This is likely the bank’s worst day since May 31, if current losses persist.

The bank foresees increased risk heading into FY24 due to a raised cost of living and sustained higher interest rates.

It also predicted revenue and margin pressure to persist into FY24 due to slower credit growth and competition.

The bank has reported a cash net profit after tax of A$450 million for FY23 which comes in 4% below the consensus estimates of Visible Alpha.

Brokerage UBS labels the bank’s net interest margin fall of 21bps during the half as ‘somewhat concerning’, which further emphasizes the adverse conditions faced by smaller banks.

Citi notes the result as significantly weak, with the possibility of further negative recalibrations to the FY24 consensus expectations.

As of its last closing, the Bank of Queensland stock had decreased by 16.2% this year.

Bank of Queensland (ASX:BOQ) is a Brisbane-based financial institution known for personal banking and financial solutions.