Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Shareholder Meeting (2010)
24 slides from Bank Of Queensland's shareholder meeting presentation, 2010
Slide 1: Managing Director's address
2 Managing Director’s address Annual General Meeting 2009 Mr David Liddy 2
Slide 2: Our stakeholders
Our stakeholders 4 Annual General Meeting Customers 2009 Owner-Managers Community Shareholders 4
Slide 3: The 'it's personal' brand relaunch
The ‘it’s personal’ brand relaunch 5 Matthew Sleaford Josephine Tan Owner-Manager, Owner-Manager, 100 Exhibition North Rockhampton branch St and Docklands branches Annual General Meeting 2009 Anthony Walker 5 Owner-Manager, Penrith branch
Slide 4: Result continues momentum
6 Result continues momentum 2009 2010 Normalised cash NPAT $187.4m $197.1m 5% Cash EPS (normalised fully diluted) 98.4c 83.4c 15c Ordinary dividend 52c 52c - Loan growth (pcp) 10% 11% Retail deposit growth (pcp 16% 11% Net interest margin 1.56% 1.60% 4bps Cost-to-income ratio (normalised cash) 49.9%
Slide 5: Growth well ahead of the industry average
7 Growth well ahead of the industry average Lending growth: ~2.5x system* Deposit growth: ~1.5x system* 11% 11% 8% 4% System BOQ System BOQ BOQ System System BOQ SystemSystem Lending growth Retail deposit growth * Last 12 months Annual General Source: APRA data Meeting 2009 7
Slide 6: Continued expense management
8 Continued expense management Expenses slightly ahead of full year guidance… expense management disciplines delivering a more efficient business Cost-to-income ratio* Expenses* $314.0m $320.6m 2% 62.6% $13.8m $16.3m Admin $85.5m $87.2m Operating 56.1% $64.4m $68.3m Computer 49.9% $24.5m $24.0m Occu
Slide 7: Strong capital base and liquidity
9 Strong capital base and liquidity Tier 1 and total capital levels remain in excess of APRA and internal benchmarks Conservative liquidity position maintained during half to ensure smooth completion of recent acquisitions and recently buoyed by record post-GFC securitisation issue Capital adequacy
Slide 8: Network continuing to grow
10 Network continuing to grow Total OMB commissions OMB income split FY10 Upfront income $133.1m 29% $116.1m Share of fees $93.7m 12% $70.4m Other income Trail income 10% FY07 FY08 FY09 FY10 49% Total OMB commission payments continue to Majority OMB income comes from existing increase balance sheet
Slide 9: CIT A&NZ and St Andrew's acquisitions
11 CIT A&NZ and St Andrew’s acquisitions CIT Australia & New Zealand and St Andrew’s acquisitions completed 30 June and 1 July respectively 100% of existing management team and 100% of key staff transitioned Business momentum maintained and enhanced through the purchase process Transition and integr
Slide 10: BOQ National Finance
12 BOQ National Finance Creation of a best in class finance company Loans Under Management by segment Responsible for ~$3.9bn of assets including BOQ Equipment Debtor Finance 4% Finance and Debtor Finance Vendor Finance 12% Majority of customers have their primary banking relationship with a major P
Slide 11: St Andrew's Insurance
13 St Andrew’s Insurance Life and general insurer underwriting personal lines focussed on consumer credit Capital-lite, high ROE business 1% of policies overcoming headwinds in 0 FTE 18% of policies banking non-interest income 5 FTE 34% of policies B2B distribution model through 57 FTE 2% of policie
Slide 12: A more diversified business – operating business lines
A more diversified business – operating 14 3 business lines Banking National Finance Insurance Customers Retail and SME Third parties and direct Third parties and direct Value Your own personal bank Best in class specialist Your insurance partner financier proposition Relationship based service mode
Slide 13: Group Executive team
Group Executive team 15 David Liddy Ram Kangatharan Ewan Cameron Darryl Newton Jim Stabback Keith Rodwell Renato Mazza Managing Director & Chief Operating Chief Financial Chief Risk Officer Group Executive, Group Executive, Group Executive, Chief Executive Officer Officer IT and Operations BOQ Natio
Slide 14: New products and services
16 New products and services Annual General Meeting 2009 Mr David Liddy 16
Slide 15: Greater ATM access
17 Greater ATM access BOQ has formed an alliance with Cuscal Limited to allow BOQ customers to access rediATMs, one of the largest ATM networks in Australia Provides our customers with greater convenience and accessibility to ATMs Most importantly, our customers can also access the ATMs on this larg
Slide 16: Filling product suite gaps
Filling product suite gaps 18 Self Managed Super Fund account High interest bearing investment account for customers with SMSFs An online savings product To be launched in first quarter of 2011 Online share trading platform Online share trading service in partnership with CMC Markets Stockbroking In
Slide 17: The Save to Win Account
19 The Save to Win Account New account which enables deposit- holders with a minimum balance to be automatically entered into a monthly prize draw 1% p.a. interest rate earned on deposits Aimed at people who want a novel way to save some spare cash Will help increase new customers Annual General Mee
Slide 18: Your chance to win!
20 Your chance to win! Annual General Meeting 2009 20
Slide 19: Shareholder benefits package
21 Shareholder benefits package Changes to our shareholder benefits package will be introduced and communicated in the first quarter of 2011: Savings Accounts: Increase on the bonus interest from 0.10% to 0.25% on any standard carded rate on BOQ Premier Investments between $25,000 and $250,000 (excl
Slide 20: Outlook
22 Outlook Annual General Meeting 2009 Mr David Liddy 22
Slide 21: Challenges ahead
23 Challenges ahead Margin pressure still present, but improving Funding costs still high; ongoing payment of Government Guarantee Significant regulatory and technology spend Slow economic conditions generally – Queensland specifically Uncertain landscape in terms of proposed banking changes and reg
Slide 22: Competition in banking
24 Competition in banking The competitive landscape has changed significantly post-GFC Without the ability to provide pricing competition, it is difficult for a banking participant to provide genuine competition to the major banks Prior to the GFC, securitisation was the “leveller” Allowed an equal
Slide 23: Prospects for FY11 and beyond
25 Prospects for FY11 and beyond Acquisitions are expected to perform better than pro-forma Growth opportunities in our three business lines – total lending in the first two months of the year are above our FY11 guidance of 1.5 – 2x system Cost disciplines are holding Margins improving The suite of
Slide 24: Outlook
26 Outlook $210m to $230m cash net profit after tax (normalised) 45% cost-to-income ratio (excluding acquisitions) 1.5 to 2 times higher lending and deposit growth (than the industry average) 10% to 20% dividend growth Annual General Meeting 2009 26