Bank of Queensland (ASX:BOQ) was established way back in 1874 and operates mainly in its home state of Queensland, with operations covering retail financial services and business banking.

It has been one of the shares to sell in recent times due to the macroeconomic headwinds plaguing the financial sector.

Today BOQ reported an FY11 net profit of $158.7 million, down 13% on-year. The result was impacted by higher bad debts and subdued credit growth.

Underlying profit rose 18% on-year to $447.4 million, helped by a disciplined expense control. BOQ's cost-to-income ratio fell 1% to 44.5%.

The group was hit by funding cost pressures in the 2H, but still grew its full year net interest margin by 5 basis points to 1.65%.

BOQ noted FY12 would be turnaround year for the group and that it was confident in the underlyin earnings momentum.

A final dividend of 28 cents was declared.