Bank of Queensland has reported a solid result for its 2016/17 financial year, with a statutory net profit after tax of A$352 million, up four per cent on the previous year, and after tax cash earnings of $378 million, an increase of five per cent.As CEO Jon Sutton observed when unveiling the results to a group of analysts and investors, BOQ's second half was stronger than its first six months, with net interest margin up five basis points on the prior half to 1.90 per cent.BOQ's capital position further improved, with the CET1 ratio up 10 bps over the half to 9.39 per cent. This position will be further strengthened by 20 to 25 bps following business and regulatory changes relating to the treatment of securitised assets.Among other key metrics to show improvement were impaired assets as a percentage of gross loans (down to 44 bps), and loan impairment expense at just 11 bps of gross loans during the year, or $48 million.Performance in the second half improved, particularly in the areas of housing and commercial loan portfolios, Sutton said. He also noted that the Virgin Money home loan portfolio "has exceeded expectations, delivering $700 million in loan balances since its launch." BOQ's other niche businesses continue to grow, notably BOQ Specialist, BOQ Finance and other commercial lending target segments. Loan balances in the niche business banking segments of agribusiness, corporate healthcare and retirement living, and hospitality and tourism, have grown by $309 million to $1.5 billion.Sutton claimed the improvement in both lending growth and margins was "the outcome of a deliberate approach to improve risk management over the past five years."FY17 vs FY16 comparisons: •    cash earnings after tax of $378 million, up five per cent;•    statutory net profit after tax of $352 million, up four per cent;•    net interest margin up five bps on the prior half to 1.90 per cent;•    cost to income ratio down 20 bps to 46.6 per cent;•    loan impairment expense down 28 per cent to $48 million or 11 bps of gross loans;•    common Equity Tier 1 (CET1) capital ratio up 10 bps on the prior half to 9.39 per cent;•    basic earnings per share up two per cent to 97.6 cents;•    return on average ordinary equity up 10 bps to 10.4 per cent;•    fully franked final dividend maintained at 38 cents per ordinary share;•    special dividend of eight cents per ordinary share; and•    dividend reinvestment plan suspended until 24 November 2017.Note: Figures are on a cash basis unless otherwise stated.  FY17 includes the benefit of a $16 million profit on disposal of a vendor finance entitySource: BOQ results presentation