Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — FY2020 Earnings Presentation
76 slides from Bank Of Queensland's earnings presentation, Oct 14, 2020
Slide 1: FY20 Investor Materials
FY20 INVESTOR MATERIALS 14 OCTOBER 2020 Full Year ended 31 August 2020 BANK OF QUEENSLAND LIMITED ABN 32 009 656 740. AFSL NO 244616.
Slide 2: Contents
CONTENTS FY20 RESULTS PRESENTATION 3 ABOUT BOQ 32 STRATEGY 36 FY20 RESULTS 39 COVID-19 BUSINESS IMPACTS 45 PORTFOLIO QUALITY 56 CAPITAL, FUNDING & LIQUIDITY 61 DIVISIONAL RESULTS 68 ECONOMIC ASSUMPTIONS 72 Bank of Queensland Limited 2020 Full Year Results Presentation 2
Slide 3: FY20 Results Presentation
FY20 RESULTS PRESENTATION 14 OCTOBER 2020 Full Year ended 31 August 2020 BANK OF QUEENSLAND LIMITED ABN 32 009 656 740. AFSL NO 244616.
Slide 4: Agenda
AGENDA INTRODUCTION Cherie Bell, General Manager Investor Relations RESULTS OVERVIEW George Frazis, Managing Director and CEO FINANCIAL DETAIL AND PORTFOLIO ANALYSIS Ewen Stafford, Chief Financial Officer and Chief Operating Officer Adam McAnalen, Chief Risk Officer SUMMARY & OUTLOOK George Frazis,
Slide 5: Results Overview
RESULTS OVERVIEW GEORGE FRAZIS MANAGING DIRECTOR AND CEO
Slide 6: Refreshed Executive Team
REFRESHED EXECUTIVE TEAM GEORGE FRAZIS EWEN STAFFORD ADAM MCANALEN CRAIG RYMAN DEB ECKERSLEY RACHEAL KELLAWAY Managing Director and Chief Chief Financial Officer and Chief Chief Risk Officer Chief Information Officer Group Executive People and Deputy Chief Financial Officer Executive Officer Operati
Slide 7: FY20 Overview
FY20 OVERVIEW 1. Lower statutory profit of $115m, reflecting the challenging environment and a year of transition 2. Business momentum, with revenue growing and good margin management 3. Supporting our customers and people during COVID-19, through banking relief packages and changes to ways of worki
Slide 8: Supporting Our Customers & People
SUPPORTING OUR CUSTOMERS & PEOPLE THE ECONOMIC IMPACT OF COVID-19 HAS BEEN SIGNIFICANT OUR BUSINESS RESILIENCE OUR CUSTOMERS • All operations including branches have remained open for customers • CET1 at 9.78%, materially above APRA’s “unquestionably strong” benchmark • Supported customers through B
Slide 9: FY20 Results
FY20 RESULTS LOWER STATUTORY PROFIT IN A STRATEGIC TRANSITION YEAR, FURTHER IMPACTED BY COVID-19 Key financial results FY20 FY19 FY20 v FY19 $ million Statutory net profit after tax 115 298 (61%) Cash earnings after tax 225 320 (30%) Cash return on average equity 5.4% 8.3% (290bps) Common Equity Tie
Slide 10: Key Elements of the Result
KEY ELEMENTS OF THE RESULT LENDING MOMENTUM AND MARGIN MANAGEMENT DRIVING RESULT, IMPACTED BY COLLECTIVE PROVISION OVERLAY FOR COVID-19 NII GROWTH ($M) NET INTEREST MARGIN (%) +4% +3bps 503 1.94 476 485 483 1.92 1.92 1.89 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 COST TO INCOME RATIO (%) LOAN IMPAIRME
Slide 11: Lending and Deposit Growth
LENDING AND DEPOSIT GROWTH NICHE SEGMENT STRATEGY DELIVERING GROWTH GROWTH IN CUSTOMER DEPOSITS ($M) GROWTH IN LENDING ($M) 2,334 1,462 1,103 250 937 1,537 827 1,135 264 2 8 641 569 239 1,364 667 337 702 600 (208) (567) 653 127 508 FY18 FY19 FY20 (10) 141 (26) Retail Bank Business Bank Other Deposit
Slide 12: Divisional Achievements
DIVISIONAL ACHIEVEMENTS RETAIL BANK BOQ BUSINESS Housing Lending Growth ($m) Deposit Growth ($m) Commercial, Agri & SME Lending Deposit Growth ($m) Growth ($m) 337 1,537 1,364 600 127 65 239 FY19 FY20 FY19 FY20 FY19 FY20 (464) FY19 FY20 • BOQB Net Interest Income increased 3% due to good growth and
Slide 13: Driving BOQ Forward
DRIVING BOQ FORWARD EXECUTING ON STRATEGY TO DRIVE BUSINESS UPLIFT - GOOD PROGRESS WITH MORE WORK TO DO Objective FY19 FY20 High calibre Key Executive roles filled with experienced High calibre Executive and Senior Management High level of Executive turnover leaders and strong execution capability t
Slide 14: Executing on our strategy
Executing on our strategy Setting the foundation for BOQ’s digital transformation Leveraging existing scale Cloud based core banking platform for the Retail Bank Partnership as a strategic advantage Market leading VMA as a growth engine, technology solution improving ROE Clear roadmap for phase 2 14
Slide 15: Financial Detail & Portfolio Quality
FINANCIAL DETAIL & PORTFOLIO QUALITY EWEN STAFFORD CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER ADAM MCANALEN CHIEF RISK OFFICER
Slide 16: Financial Performance
FINANCIAL PERFORMANCE STATUTORY PROFIT DOWN, UNDERLYING PROFIT UP IN THE HALF DRIVEN BY INCOME GROWTH $ million FY20 FY19 FY20 v FY19 2H20 1H20 2H20 v 1H20 Net interest income 986 961 3% 503 483 4% Non-interest income 110 128 (14%) 52 58 (10%) Total income 1,096 1,089 1% 555 541 3% Operating expense
Slide 17: Non Cash Earnings
NON CASH EARNINGS STATUTORY NPAT DOWN 61% DUE TO TRANSFORMATION INVESTMENT $ million FY20 FY19 2H20 1H20 Cash earnings after tax 225 320 74 151 Strategy Refresh (after tax) Intangible Asset Review (Policy change (19m) / Strategic Impairments (27m) / Amort. (57) 0 (25) (32) Acceleration (8m) / Other
Slide 18: Net Interest Margin
NET INTEREST MARGIN GOOD NIM MANAGEMENT BALANCING GROWTH WITH RETURNS NET INTEREST MARGIN – 1H20 TO 2H20 0.13% 0.09% 0.04% 0.05% 0.00% 1.89% 1.92% 1H20 Asset Pricing & Mix Funding Costs & Mix Hedging Costs Capital & LCDs Liquidity & Other 2H20 SUMMARY KEY NIM MOVEMENTS OVER TIME • Margin benefits fr
Slide 19: Operating Expenses
OPERATING EXPENSES INCREASED INVESTMENT IN STRATEGIC INITIATIVES, RISK AND COMPLIANCE PROGRAMS SUMMARY OPERATING EXPENSE BREAKDOWN ($M)1 • Increased technology spend on strategic initiatives (VMA Phase 1 and +2% +4% +2% -5% core infrastructure modernisation) 14 30 594 +4% 11 11 11 • Increased employ
Slide 20: Enhancing Our Execution Capability
ENHANCING OUR EXECUTION CAPABILITY GOOD PROGRESS ON OUR STRATEGIC TRANSFORMATION EXECUTION CAPABILITY UPLIFT FY20 CAPITAL INVESTMENTS • Integrated strategy planning and Financial and Risk Position Purpose Led Culture • Regulatory & compliance investment portfolio management programs • People & Cultu
Slide 21: Capital Investment
CAPITAL INVESTMENT INVESTMENT PRIORITISED ALONG STRATEGIC ROADMAP SUMMARY CAPITAL INVESTMENT ($M) • Capital investment of $100m in line with strategic roadmap 95 100 71 • Investment spend focused on core 48 60 infrastructure modernisation and VMA 46 digital bank 35 52 25 • Reduction in software inta
Slide 22: Portfolio and Loan Impairment Expense
PORTFOLIO AND LOAN IMPAIRMENT EXPENSE PRUDENT PROVISIONING LEVELS GIVEN ONGOING UNCERTAINTY PROVISIONS ($M) +57% LOAN IMPAIRMENT EXPENSE ($M) 147 FY20 369 $175m 3 214 233 235 133 41 28 123 10 28 148 142 10 137 140 12 2 77 85 85 94 16 31 26 21 1H19 2H19 1H20 2H20 1H19 2H19 1H20 1 2H20 Specific Collec
Slide 23: Funding & Liquidity
FUNDING & LIQUIDITY RESILIENT FUNDING & LIQUIDITY PROFILE WITH STRATEGIC OPTIONS TO GROW SUMMARY FUNDING MIX ($BN) +1% • Strong customer deposit growth during FY20 • Deposit to loan ratio of 74% 48.1 50.3 50.8 • Reduced reliance on short term wholesale funding • Term funding facility providing addit
Slide 24: Capital
CAPITAL GOOD CAPITAL POSITION WITH FLEXIBILITY TO ADAPT TO CHANGING CONDITIONS CET1 1H20 VS 2H20 0.51% 0.08% 0.39% 9.91% 0.09% 0.09% 0.03% 0.04% 9.78% 43bps 1H20 2H20 Cash NPAT RWA Growth COVID-19 (Incl. Statutory Net CAPEX Securitisation Other Items FY20 (Excl. COVID) DTA) Adjustments Impact SUMMAR
Slide 25: Portfolio Quality
PORTFOLIO QUALITY ELEVATED ARREARS IN RESPONSE TO COVID-19 SUMMARY COMMERCIAL ARREARS (bps) • Housing and commercial arrears increased during the half as 224 economic conditions worsened due to COVID-19 138 148 150 140 147 140 • 90 days is elevated due to changed enforcement activities 129 119 and s
Slide 26: Banking Relief Packages August 2020
BANKING RELIEF PACKAGES AUGUST 2020 WELL DIVERSIFIED PORTFOLIO ACROSS GEOGRAPHIC AND INDUSTRY SEGMENTS KEY MESSAGES TOTAL DEFERRAL BALANCES ($BN)1 (18.8%) • Well diversified portfolio across geography, industry and asset 7.7 7.6 7.2 6.5 class 6.2 2.8 2.8 2.7 • 25% of customers on relief continued to
Slide 27: Housing Loan Banking Relief Packages August 2020
HOUSING LOAN BANKING RELIEF PACKAGES AUGUST 2020 DEFERRALS REDUCING SINCE PEAK IN APRIL KEY MESSAGES HOME LOAN DEFERRAL BALANCES ($BN) 15 20% • 12% of home loan customers currently on deferral 15% 15% 15% 13% 15% • Housing deferrals have average LVR of 65% 10 12% 10% • 92% of BRP customers have an L
Slide 28: SME Banking Relief Packages August 2020
SME BANKING RELIEF PACKAGES AUGUST 2020 DEFERRALS REDUCING SINCE PEAK IN APRIL KEY MESSAGES SME DEFERRAL BALANCES ($BN) 25 • 16% of SME customers currently on deferral 40% 20 21 20 20 • 37% of SME deferrals relating to healthcare, primarily dental 15 19 19 30% 18% 18% 17% 17% 16% 20% • Individual re
Slide 29: Summary & Outlook
SUMMARY & OUTLOOK GEORGE FRAZIS MANAGING DIRECTOR AND CEO
Slide 30: FY20 Summary
FY20 SUMMARY 1. Focus has been on supporting our customers and people during COVID-19 2. Delivered solid revenue growth in a challenging year, with momentum continuing 3. Prudent COVID-19 collective overlay and strong capital, positions us well for the future 4. Executing on our strategy as planned,
Slide 31: FY21 Outlook
FY21 OUTLOOK1 1. Uncertain outlook given COVID-19, but Australia relatively well placed • Less likelihood of downside scenarios on unemployment and house prices given Government stimulus – uncertainty until vaccine developed 2. Remain committed to transformation strategy and capital investment of $1
Slide 32: About BOQ Group
GROUP ABOUT BOQ
Slide 33: BOQ
BOQ UNIQUE BRANDS IN NICHE SEGMENTS SERVING CUSTOMERS FOR 146 YEARS OUR DIFFERENTIATORS KEY STATISTICS FOR FY20 Unique brands with proud history Deeply anchored in local communities c.575k BOQ c.35k Specialist c.900k c.200k VMA c.85k Finance Highly specialised bankers, within niche industry se
Slide 34: Distribution Footprint
DISTRIBUTION FOOTPRINT SUMMARY • In FY20 branch numbers reduced by 2 to 165 (incl. transaction centres) • The franchise network remains a key differentiator for BOQ and is pivotal to the Bank’s deposit raising 1 17 13 capabilities 33 58 954 1 4 • 95% franchisees transitioned to the new franchise 702
Slide 35: Distribution Footprint Movements
DISTRIBUTION FOOTPRINT MOVEMENTS Aug-20 QLD NSW / ACT VIC WA NT TAS SA Total Corporate branches 33 9 9 12 - - - 63 Owner managed branches 58 18 10 6 1 2 - 95 Transaction centres 7 - - - - - - 7 98 27 19 18 1 2 - 165 Aug-19 QLD NSW / ACT VIC WA NT TAS SA Total Corporate branches 34 10 9 12 - - - 65 O
Slide 36: Strategy
GROUP STRATEGY
Slide 37: Purpose & Values, Ambition and Strategic Pillars
PURPOSE & VALUES, AMBITION AND STRATEGIC PILLARS CLEAR PRIORITIES FOCUSED ON CUSTOMERS, PEOPLE AND SHAREHOLDERS PURPOSE & VALUES Creating prosperity for our customers, shareholders and people through empathy, integrity and by making a difference OUR AMBITION We will be known as the bold challenger b
Slide 38: Strategy Update
STRATEGY UPDATE EXECUTING ON OUR STRATEGY WITH EARLY RESULTS Refreshed Purpose & Values, culture survey completed and action plan developed 1 Our purpose led empathetic Retail NPS rank increased to 3rd (5th FY19) and Mortgage NPS rank improved to 5th (11th FY19) culture sets us apart Action pl
Slide 39: FY20 Results
GROUP FY20 RESULTS
Slide 40: FY20 Results Overview
FY20 RESULTS OVERVIEW Financial Balance Sheet, Capital & Funding FY20 FY20 v FY19 FY20 FY20 v FY19 Statutory NPAT $115m (61%) CET1 9.78% +74bps Cash NPAT $225m (30%) Total GLAs $47,043m +2% ROE (cash) 5.4% (290bps) Customer Deposits $34,762m +7% EPS cents (cash) 51.1c (36%) Deposit to Loan Ratio 74%
Slide 41: Average Balance Sheet & Margin – FY20 & FY19
AVERAGE BALANCE SHEET & MARGIN – FY20 & FY19 AVERAGE BALANCE SHEET AND MARGIN ANALYSIS August 2020 (Full Year) August 2019 (Full Year) Average Average Average Average balance Interest rate balance Interest rate $millions $m $m % $m $m % INTEREST EARNING ASSETS Gross loans & advances at amortised cos
Slide 42: Average Balance Sheet & Margin – Half on Half
AVERAGE BALANCE SHEET & MARGIN – HALF ON HALF AVERAGE BALANCE SHEET AND MARGIN ANALYSIS August 2020 (six month period) February 2020 (six month period) Average Average Average Average balance Interest rate balance Interest rate $millions $m $m % $m $m % INTEREST EARNING ASSETS Gross loans & advances
Slide 43: Non-Interest Income
NON-INTEREST INCOME DECLINING NON-INTEREST INCOME IN LINE WITH INDUSTRY TRENDS AND COVID WAIVERS AND REDUCTIONS SUMMARY NON-INTEREST INCOME BREAKDOWN ($M) • Non-interest income declined by $18m due to: 145 1 • Ongoing industry trends towards low and 19 128 no fee products 5 11 110 • COVID-19 impacts
Slide 44: Cash EPS
CASH EPS Year End Performance Half Year Performance Aug 20 Aug 20 Aug-20 Aug-19 vs Aug 19 Aug-20 Feb-20 vs Feb 20 Basic EPS (cents) 51.1 79.5 (36%) 16.3 35.3 (54%) Diluted EPS (cents) 46.3 73.9 (37%) 15.3 32.2 (52%) Reconciliation of Cash Earnings for EPS Cash earnings available for ordinary ($ mill
Slide 45: COVID-19 Business Impacts
GROUP COVID-19 BUSINESS IMPACTS
Slide 46: Supporting Our Customers
SUPPORTING OUR CUSTOMERS RELIEF PACKAGES DESIGNED FOR OUR RETAIL AND BUSINESS BANKING CUSTOMERS SMALL BUSINESS CUSTOMERS PERSONAL CUSTOMERS Business Banking Relief Package offering eligible small Personal Banking Relief Package providing eligible business customers with up to $10m in lending a 6
Slide 47: Collective Provision Drivers
COLLECTIVE PROVISION DRIVERS INCREASED PROVISIONS IN LIGHT OF ECONOMIC UNCERTAINTY SUMMARY COLLECTIVE PROVISION ($M) • FY20 COVID-19 related collective provision totals $133m 339 • Increase provision is the result of a change in forecast 210 64 assumptions towards higher unemployment, downgrades to
Slide 48: Provision Coverage
PROVISION COVERAGE SUMMARY SPECIFIC PROVISIONS / IMPAIRED ASSETS (%) • Specific provisions to impaired assets remained broadly flat 51 48 • Increased collective provision by $133m in response to 43 43 potential COVID-19 economic impacts • Coverage levels remain strong compared to peers 1H19 2H19 1H2
Slide 49: Housing Loan Deferrals
HOUSING LOAN DEFERRALS AUGUST 2020 SUMMARY HOUSING LOAN DEFERRALS – BALANCES & ACCOUNT NUMBERS 15 20% • 12% of housing customers on BRP as at August 15% 15% 15% 13% 15% • Deferral balances continue to reduce since the peak in April 10 12% 10% • Average LVR of 65% 13 13 12 11 5 11 5% • 92% of custome
Slide 50: Housing Loan Deferrals
HOUSING LOAN DEFERRALS AUGUST 2020 DEFERRALS BY LVR BAND DEFERRALS BY STATE 41% 44% 48% 45% 21% 21% 26% 16% 16% 21% 14% 13% 17% 15% 4% 8% 6% 10% 11% 3% Up to 40% 40% - 60% 60% - 80% 80% - 90% Above 90% QLD NSW & ACT VIC WA Other % Deferral Balance % Portfolio Balance % Deferral Balance % Portfolio B
Slide 51: Housing Loan Deferrals
HOUSING LOAN DEFERRALS AUGUST 2020 SUMMARY HOME LOAN DEFERRAL – EXPIRY TERM • 79% of customers remained on BRP after the 3 month check-in period First term current Expired term deferrals, 94.8% deferrals, 4.9% • 17% of customers withdrew from the BRP at the 3 month check-in Extension term current de
Slide 52: SME Loan Deferrals
SME LOAN DEFERRALS AUGUST 2020 SUMMARY SME DEFERRALS – BALANCES & ACCOUNT NUMBERS4 • 16% of SME customers on BRP as at August 25 40% • Deferral balances continue to reduce since the peak in April 20 21 20 19 20 19 30% 15 • Proactive approach to working with SME customers to 18% 18% 17% 17% 16% 20% 1
Slide 53: SME Loan Deferrals
SME LOAN DEFERRALS AUGUST 2020 SUMMARY SME DEFERRALS BY LOCATION • SME BRP portfolio composition broadly consistent with the total SME portfolio 41% • 37% of BRP deferrals relating to health care industry due to 35% 24% 25% 19% 21% BOQ Specialist deferral portfolio 8% 7% 9% 6% 5% <1% • Loan balances
Slide 54: SME Loan Deferrals – Risk Categorisation
SME LOAN DEFERRALS – RISK CATEGORISATION AUGUST 2020 RISK CATEGORISATION BY NUMBER OF ACCOUNTS RISK CATEGORISATION BY EXPOSURE 43% 46% 37% 19% 34% 56% 74% 25% 12% 71% 2% 46% 8% 10% 10% 38% 18% 23% 4% 88% 15% 48% 15% 59% 29% 5% 10% 33% 10% 11% 62% LOW RISK HIGH RISK LOW RISK 37% HIGH RISK Category 1
Slide 55: SME Loan Deferrals – Expiry Term
SME LOAN DEFERRALS AUGUST 2020 SUMMARY SME LOAN DEFERRAL – EXPIRY TERM Expired term • 79% of customers remained on BRP for the full 6 months deferrals, 4.5% • 12% of customers withdrew from the BRP at the 3 month Extension term check-in First term current current deferrals, 0.7% deferrals, 94.8% • A
Slide 56: Portfolio Quality
GROUP PORTFOLIO QUALITY
Slide 57: Housing Loan Portfolio
HOUSING LOAN PORTFOLIO SUMMARY HOUSING PORTFOLIO BY LVR • Carefully managed risk levels across housing portfolio, with 6% average LVR of 66% 16% Up to and including 60% 34% >60% to 70% • 94% of customers with LVR<90% >70% to 80% • Increasing geographic diversification outside of QLD >80% to 90% 27%
Slide 58: Asset Finance Portfolio
ASSET FINANCE PORTFOLIO SUMMARY ASSET FINANCE BY STATE • Portfolio is well diversified geographically 17% • Broad industry spread reducing concentration 32% QLD 8% NSW & ACT VIC WA 20% OTHER 24% ASSET FINANCE BY INDUSTRY ASSET FINANCE BY CHANNEL Construction 18% 3% Equipment Finance Transport 3% 39%
Slide 59: Commercial Portfolio
COMMERCIAL PORTFOLIO SUMMARY COMMERCIAL PORTFOLIO BY STATE 5% • Commercial portfolio well diversified geographically 7% QLD • Niche segment strategy driving industry focus in healthcare 40% NSW 16% through BOQS VIC • Owner-managers and Business Banking focused on SME WA lending Other 32% COMMERCIAL
Slide 60: Industry and Geographic Split Overtime
INDUSTRY AND GEOGRAPHIC SPLIT OVERTIME HOUSING LOANS - GEOGRAPHIC SPLIT OVER TIME SUMMARY FY20 Balance Outstanding (%) 45% 24% 15% 11% 5% • Enhanced geographic FY17 Balance Outstanding (%) 50% 21% 14% 12% 3% diversification, Queensland portfolio reducing over 3 years QLD NSW & ACT VIC WA Other from
Slide 61: Capital, Funding & Liquidity
CAPITAL, FUNDING & LIQUIDITY
Slide 62: Replicating Portfolio
REPLICATING PORTFOLIO SUMMARY REPLICATING PORTFOLIO AND EQUITY HEDGE (%) 6% • The cash rate cuts and associated lower interest rate environment has impacted NIM by 5bps in 2H20 4% • This is due to a 2bps reduction on the Replicating Portfolio Return replicating portfolio, and an additional 3bps redu
Slide 63: Hedging Costs - Basis Risk
HEDGING COSTS - BASIS RISK SUMMARY LONG TERM BASIS RISK AVG - 25BPS • The impacts of hedging costs improved NIM by 4bps in 2H20 0.5% • Average basis portfolio spreads reduced from 24bps to 17bps during the period 0.2% -0.1% Aug-12 Aug-20 Bank of Queensland Limited 2020 Full Year Results Presentation
Slide 64: Funding
FUNDING SUMMARY DEPOSIT TO LOAN RATIO • Funding loan growth with stable sources of funding, including customer deposits and long term wholesale • Growth in deposits contributed to increased deposit to loan ratio and is a result of government initiatives and COVID-19 elevated liquidity 74% USES & SOU
Slide 65: Liquidity
LIQUIDITY SUMMARY NSFR MOVEMENT – FY20 119% • Strong liquidity with LCR at 164% and NSFR at 119%, well 1.4% 6.7% 119% above regulatory targets -0.2% 0.0% -1.3% -0.2% • Prudent approach to managing liquidity which held us in a 112% 0.6% good position during the market dislocation in COVID-19 • Well p
Slide 66: Term Funding
TERM FUNDING LONG TERM WHOLESALE FUNDING ($BN) MAJOR MATURITIES ($M)1 -6% 12.0 11.5 11.3 10.4 0.8 0.8 0.8 0.8 0.7 744 811 4.6 4.2 3.4 150 3.9 820 1.6 1.7 0.8 2.4 700 750 600 600 600 350 600 500 4.9 5.0 4.8 4.0 200 150 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 1H19 2H19 1H20 2H20 2021 2022 2023 2024 2025 Senior
Slide 67: Credit Rating
CREDIT RATING The Bank monitors rating agency developments closely and is rated by Standard & Poor's (S&P), Moody’s Investor Service and Fitch Ratings. BOQ’s current debt ratings are shown below. Fitch Ratings has revised the Outlook on BOQ’s Long-Term Issuer Default Rating to Negative from Stable o
Slide 68: Divisional Results
GROUP DIVISIONAL RESULTS
Slide 69: Divisional Performance
DIVISIONAL PERFORMANCE SOLID UNDERLYING PERFORMANCE ACROSS RETAIL & BOQ BUSINESS RETAIL BUSINESS $ million FY20 FY19 FY20 v FY19 FY20 FY19 FY20 v FY19 Net interest income 437 432 1% 543 527 3% Non-interest income 56 63 (11%) 40 50 (20%) Total income 493 495 - 583 577 1% Operating expenses (317) (289
Slide 70: Retail Banking Overview
RETAIL BANKING OVERVIEW STRONG LENDING GROWTH FOR VMA - IMPROVED PERFORMANCE FOR BOQ BLUE SUMMARY IMPROVED HOME LENDING GROWTH ($M)1 -248 -216 73 • VMA continuing to deliver good growth in a maturing portfolio -8 469 445 489 • BOQ Blue contracting at a slower rate due to increased 225 acquisition vo
Slide 71: Business Banking Overview
BUSINESS BANKING OVERVIEW NICHE SEGMENT STRATEGY DELIVERING BALANCED GROWTH ACROSS BOQB BRANDS SUMMARY LENDING GROWTH – BOQ SPECIALIST ($M) -20% • Solid growth in both the BOQ Commercial and Specialist 756 businesses, through their focus on niche segments 130 608 100 • Business lending growth slowed
Slide 72: Economic Assumptions
GROUP ECONOMIC ASSUMPTIONS
Slide 73: Macro Economic Environment
MACRO ECONOMIC ENVIRONMENT ECONOMIC ENVIRONMENT IMPROVING, BUT SIGNIFICANT UNCERTAINTY REMAINS MACRO ECONOMIC • Economy is improving although the recovery is likely to be bumpy with uncertain strength • Greatest uncertainty remains the health crisis, and that is unlikely to be resolved until vaccine
Slide 74: Disclaimer
GROUP DISCLAIMER
Slide 75: Abbreviations
ABBREVIATIONS 1H: First half of financial year GDP: Gross Domestic Product 2H: Second half of financial year GLA: Gross Loans & Advances 30DPD: 30 days past due GRCL: General Reserve for Credit Losses 90DPD: 90 days past due LCD: Low cost deposit AASB: Australian Accounting Standards Board LCR: Liqu
Slide 76: Important Information and Disclaimer
DISCLAIMER IMPORTANT INFORMATION AND DISCLAIMER Summary information This is a presentation of general background information about Bank of Queensland Limited’s (BOQ’s) activities at the date of this document. It is in summary form and does not purport to be complete. It should be read in conjunction