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General Information

Bank of Queensland Limited
BOQ
http://www.boq.com.au
Regional Banks
5,098
371

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$13.75 $13.75 $13.80 $13.59 $13.75 2456030 - ( No change )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Hold
29/07/2015
4

Company Overview

Business Description
Bank of Queensland Limited (BOQ) is an Australia-based entity engaged in retail banking, leasing finance and insurance products. The Bank operates in two segments: banking and insurance. BOQ's operations comprises of Banking, BOQ Finance, BOQ Specialist, St Andrew’s insurance and Virgin Money Australia.
Strategy Analysis
Growth has been driven by acquisition and the interstate Owner Management Branches (OMB) rollout program. Total OMBs of 198 include 115 in Queensland. In addition BOQ operates 71 corporate branches and 8 transaction centres. The expansion strategy clearly has not worked despite successfully delivering a two-and-a-half times increase in assets over the past five years. During the same period ROE has more than halved from over 12% in FY06 to 1% in FY12. The cost to income ratio declined following considerable work on driving down the cost base. BOQ is targeting a medium term cost to income ratio in the low 40% range. The key challenges facing BOQ in the short term is maintaining the recovery in asset quality and improving return on equity. Competition for deposits is tough, particularly retail deposits which fund a large majority of loan growth. Bank of Queensland reported a net loss of $17.1m for the year ended 31 August 2012. The reduction in profit after tax was largely attributable to significant loan related impairment charges. Revenues from ordinary activities were $804.3m, up 1% from last year. The major driver of the subdued income growth was the reduction in other operating income. This was offset by growth in net interest income of $28.1m (5%). Diluted EPS was (10.2) cents compared to 60.3 cents last year. Net operating cash flow was $156.0m compared to $261.5m last year. The final dividend declared was 26 cents, taking the full year dividend to 52 cents compared with 54 cents last year.

Financial Summary

Year to Aug NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 393.2 104.5 4.1% 13.2 76.0 5.5% 100.0%
2015 F 372.0 100.3 12.1% 13.7 72.0 5.2% 100.0%
2014 A 301.2 89.5 13.3% 13.3 66.0 5.6% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Bendigo Adelaide Bnk (BEN) $5,957M 0.1222 0.1153 0.0355 15.6732 14.0531 13.5719 4.88% 5.15% 5.40%
Bank of Queensland (BOQ) $5,076M 0.1538 0.1080 0.0738 15.5994 14.0786 13.1105 4.82% 5.37% 5.64%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.74 14.30 1.49 1.57
Market 0.89 16.20 1.33 1.33
Sector 0.81 14.10 1.49 1.88

Directors

Name Position Start Date
Mr Jon Sutton Chief Executive Officer, Managing Director 05/01/2015
Mr David Stephen Willis Non-Executive Director 22/02/2010
Ms Carmel Therese Gray Non-Executive Director 06/04/2006
Mr Richard George Andrew Haire Non-Executive Director 18/04/2012
Mr Bruce James Carter Non-Executive Director 27/02/2014
Ms Michelle Kim Tredenick Non-Executive Director 22/02/2011
Ms Margaret Leone Seale Non-Executive Director 21/01/2014
Mr Neil Anthony Berkett Non-Executive Director 30/07/2013
Mr Roger Andrew Davis Non-Executive Director, Non-Executive Chairman 20/08/2008

Management

Name Position
Brian Bissaker Chief Executive Officer, Virgin Money Australia
Anthony Rose Chief Financial Officer
Julie Bale Chief Information Officer
Peter Deans Chief Risk Officer
Michelle Thomsen Company Secretary,General Counsel
Brendan White Group Executive, Business Banking, Agribusiness & Financial Markets
Karyn Munsie Group Executive, Corporate Affairs, Investor Relations & Government Relations
Matthew Baxby Group Executive, Retail and Online Banking
Stacey Hester Head of Legal,Company Secretary

Calendar of Events

Date Event
24 March 2016 Report (Interim)
23 October 2015 Report (Annual)
08 October 2015 Report (Prelim)
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