Bank of Queensland will refund an estimated $34.5 million to its customers after an internal review found errors in its interest rates and fees.
The bank will also incur additional remediation costs of $11.5 million.
The refunds follow a company review which found there was an incorrect application of interest rates and fees to around four per cent of its customers, with some of the errors dating back to 2004, the bank said in a statement on Thursday.
Managing director Stuart Grimshaw said the completion of the review was an important milestone for the Bank of Queensland.
"We have worked hard to address legacy issues and ensure the business is both robust and well positioned for future growth," he said.
"One of the last steps in the bank's recovery has been this detailed review of our products, processes and systems. As well as the product review, we have assessed a broad range of areas from branch security through to disaster recovery plans and lending processes."
The refunds to customers are expected to be completed by the end of 2014.
The problems were caused by by several issues, including "overly complex products which required too many manual processes," the bank said.
"We are not only addressing the underlying issues but taking proactive steps to minimise future risks," Mr Grimshaw said.
"This includes simplifying our product suite and improving our back office procedures, for example through the automation of lending processes from origination through to the back office."
BoQ also confirmed that is will still post a profit before tax in a range of $339 million to $368 million.
It said the 2013 dividend payment will at least equal its first half interim dividend of 28 cents a share, fully franked.
BOQ will release it full-year results on October 10.
It has advised the Australian Securities and Investments Commission (ASIC) of the incorrect interest rates and fees.
