Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Macquarie Australia Conference 2018
17 slides from Bank Of Queensland's conference presentation, May 2, 2018
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference May 2018 Bank of Queensland Anthony Rose Chief Financial Officer DATA FOR THE HALF ) 28 FEBRUARY 2018 Banko! Queensland Limited AB FSL No 244618
Slide 2: Disclaimer
DISCLAIMER This is a presentation of general background information about Bank of Queensland Limited's (BOO's) activities at the date of this document. Itis in summary form and does not purport to be complete. It should be read in conjunction with BOQ's other periodic and continuous disclosure annou
Slide 3: 1H18 results highlights
For personal use only We recently reported our 1H18 results. The highlights included: • Improved lending growth, supported by our commercial niche segments, as well as home loan growth through the Virgin Money, BOQ Specialist and BOQ Broker channels. • Both the Retail Bank and BOQ Business are deliv
Slide 4: Looking at lending growth
For personal use only Looking at Lending growth • We are seeing improvements in both housing and commercial loan growth. • In housing, BOQ Broker, Virgin Money and BOQ Specialist have all made strong contributions. • We have also seen improvement in the branch network as branch numbers stabilise. As
Slide 5: Retail banking channels and Virgin Money
For personal use only • Retail Banking has continued to diversify its channels. BOQ Broker and Virgin Money contributed 40 per cent of Retail’s home loan settlements in the first half of 2018. • Overall, housing loan settlements increased 19 per cent compared to the same time last year. This was ach
Slide 6: BOQ Business and BOQ Specialist
For personal use only • The BOQ Business division has continued to benefit from maturing its niche strategy across commercial customer segments. It achieved commercial loan growth of nearly 300 million dollars. • This has been delivered across target segments that seek a real relationship banking pr
Slide 7: Asset quality
For personal use only • Our asset quality remains sound, which is clearly evident across a number of metrics. • Impaired assets have reduced to 39 basis points of total loans. • Impairment expense has remained steady at 10 basis points of total loans. • Our arrears trends remain benign, with the exc
Slide 8: Expenses and transformation investment
For personal use only • We have continued to search for and extract efficiencies across the business. This has enabled us to reduce core expenses by four million dollars compared to the last half. • At the same time, we have been investing for the future with a large number of transformation initiat
Slide 9: Capital position
For personal use only • Our capital levels remain very strong. • Following the Basel and APRA papers released in the past few months, we remain very comfortable with our position. Relative to our peers, we are in a strong position as a standardised bank at 9.42 per cent CET1. • The sale of our St An
Slide 10: Net interest margin
For personal use only Net interest margin has been a key focus for the market and is a major driver of our performance, so it warrants some detailed attention. • We did deliver an improvement of one basis point over the half to 1.97 per cent. • Stepping through each of the moving parts here, and we
Slide 11: Net interest margin drivers and outlook
The average cost of hedging reduced from 29 basis points in 2H17 to 23 basis points in 1H18. This trend has reversed recently and I’ll cover this in the outlook. • Our NIM was reduced by one basis point due to the lower yield on the 4.2 billion dollar capital and low cost deposits For personal use o
Slide 12: NIM outlook
• As always, industry pricing levels and general market conditions can impact products rates achieved on both assets and liabilities. It is difficult to provide clear guidance on the likely NIM outcome. But it is fair to say the various moving parts are larger than they’ve been more recently For per
Slide 13: External environment and regulatory scrutiny
For personal use only In terms of the external environment, there is a lot to talk about in the sector. • With increased regulatory and public scrutiny of the banking sector, there is no doubt that conduct and trust remain a core focus for the industry. At BOQ we are very aware of these challenges.
Slide 14: Queensland economic conditions
Toowoomba and Townsville. The participation rate has risen across most regions, a sign that workers are becoming more confident about getting a job. • Over the past year, stronger business conditions are being reported across all sectors. The combination of strong For personal use only residential a
Slide 15: Long term strategy and digital focus
For personal use only In this environment, our long term strategy remains the right one. We are building out our business bank and opening up new retail channels. • We remain focused on improving user experience in our digital offering. To do this, we are upgrading our online platforms and partnerin
Slide 16: Summary: BOQ's evolution since 2012
For personal use only In summary, since 2012 BOQ has consciously evolved. • In the retail space, we have gone from being a mono-line distribution business to a diversified multi-channel retail bank. On the commercial side, we are now a niche specialist business bank with a focus on higher growth sec
Slide 17: Capital flexibility and questions
• Our capital levels position us favourably to many others in the industry. This provides us with the flexibility to consider options to utilise excess capital in a way that will enhance shareholder returns. For personal use only Finally, we are well positioned to deliver on our core strategic prior
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