Bank of Queensland Limited · ASX:BOQ
Bank of Queensland — Shareholder Meeting (2003)
37 slides from Bank of Queensland's shareholder meeting presentation, 2003
Slide 1: Managing Director's Address
Managing Director’s Address
Slide 2: Launch pad for growth
Launch pad for growth ■ In 2001/02 we commenced building the launch pad: n Strategic overhaul n Outsourcing n Rebranding n Better equipped people n Core Systems replacement n PEP programs
Slide 3: Powerful growth
Powerful growth Bank of eet ete Queensland Annual General Meeting 2003
Slide 4: 2003 highlights: A record year
2003 highlights A record year ■ Full year profit of $44.7m n Up 56% on last year ■ Lending n Total approvals of $5.7b, up 54% on last year ■ Retail deposits n $3.8b, up 29% over last year ■ Cost to income ratio of 64.9% n Down from 71.3% in 2002 ■ Assets Under Management n Up 32% to $8.7 billion ■ A
Slide 5: 2003 highlights: A record year (continued)
2003 highlights A record year (continued) (continued) ■ Acquisitions - UFJ Finance and ATM Solutions ■ Replaced entire ATM system - winning international award for ATM deployment ■ Opened 22 new branches ■ Completed the re-design and fit-out of branches ■ Ranked as one of Asia’s top 50 strongest ban
Slide 6: Goals achieved
Goals achieved Goals Results Achieved ■ Strong Asset Growth ■ Assets under management up 32% ■ Double digit EPS ■ EPS growth of 46% Growth ■ Cost to Income Ratio ■ Cost to Income ratio of 68% of 64.9% ■ ROE of 14% ■ ROE of 15.4% ■ 120 Branches by ■ 120 Branches August 03 (22 opened this year)
Slide 7: The 3-year view
The 3-year view ■ Growth from the year 2000 to 2003 has shown: n Profits up 101% from $22.2m (in 2000) to $44.7m; n Assets under management up 99% from $4.37b (in 2000) to $8.71b; n Retail deposits up 79% from $2.15b (in 2000) to $3.85b; n Loan approvals up 161% from $2.17b (in 2000) to $5.67b; n Sh
Slide 8: Market reward for strong growth
Market reward for strong growth Share price increase from September 2002 to August 2003 25% 21.89% 20% 15.6% 15% 14.75% 12.58% 10% 8.40% 7.96% 5% 3.11% 2.49% 2.28% 0% St George Australia Bank of Westpac Adelaide Bank CBA Bendigo Bank Bank of Queensland NAB ANZ Western
Slide 9: Share Price Performance
Share Price Performance BOQ v ASX 200 Financials Index 1.5 Record Close on 30 Oct 03 $9.94 1.4 1.3 1.2 1.1 1.0 0.9 0.8 D 2 03 M 3 02 A 3 03 03 03 02 03 02 02 03 Fe 3 03 03 l0 0 0 0 ct ct ov ov pr ug ug b n ec p p n ay ar Ju Ju Se Se Ja O O A M N N A BOQ ASX 200 Financials
Slide 10: Earnings per share
EPS performance EPS growth of 46% (35% excl significant items) 60c 57.1c 50% 55c Earnings per share 40% EPS Growth Rate 50c 30% 45c 40c 39.4c 20% 35c 33.9c 33.2c 32.4c 10% 30c 0% 25c 20c -10% 1999 2000 2001 2002 2003 EPS Diluted EPS Growth Rate
Slide 11: Return on equity
Return on equity 16.0% 15.4% 15.0% 14.0% 13.3% 12.9% 13.0% 12.7% 12.2% 12.0% 11.0% 10.0% 1999 2000 2001 2002 2003
Slide 12: Building a better bank
Building a better bank Bank of eet ete Queensland Annual General Meeting 2003
Slide 13: Growing our retail network
Growing our retail network ■ Opened 22 new branches in 2003 FY ■ Goal of 120 branches achieved n 58 Corporate Branches n 62 Owner-Managed ■ Will reach 130 branches by the end of this month (December) n Eight months ahead of schedule n 135 expected by March 2004 ■ Announced interstate expansion
Slide 14: Business Banking
Business Banking ■ Rapid growth n 30% growth in Business Banking book ■ 10 Business Banking centres n Five opened in the last 12 months ■ Perfectly set up to be the Bank of choice for the SME market ■ Our person2person™ approach has found significant traction in the SME market.
Slide 15: Building a strong brand
Building a strong brand ■ Strong brand growth ■ New advertising is cutting through ■ Communication awareness almost doubled n grown from 32% (Nov 02) to 56% (April 03) ■ Building a strong community profile n Inaugural Corporate Charity Event n B105 Christmas Appeal ■ Unaided brand awareness has rise
Slide 16: Platform for growth
Platform fer arowth Bank of eet ete Queensland Annual General Meeting 2003
Slide 17: Performance Enhancement Program (PEP) benefits
Performance Enhancement Program (PEP) benefits Introducing PEP II once the core banking system replacement is complete $30m 30 25 $24m $14m 20 $Millions $14m 15 $12m 10 $7m $16m 5 $10m $5m 0 Initial 2003 Revised 2003 Actual 2003 Expectation Expectation (Run-rate per annum benefits) Revenue Initiativ
Slide 18: Acquisitions: UFJ Finance
Acquisitions: UFJ Finance ■ Why did we buy it? ■ How has it gone so far? n Renamed BOQ Equipment Finance and combined with existing BOQ leasing business; n First month of performance above expectations; n Settlements in November (our first month of ownership) were up 90% on the same month last year;
Slide 19: Acquisitions: ATM Solutions
Acquisitions: ATM Solutions ■ Why did we buy it? ■ How has it performed so far? n Number of active ATMs has increased from 1022 to 1260 in the first quarter of the 2004 FY. n Increase of 20% in number of ATMs in three months. n Total transactions have surged in the first quarter of the 2004 FY. n An
Slide 20: BOQ - a modern bank
BOQ - a modern bank ■ March 31 2004 implementation of new Core System for the entire bank ■ Phase II upgrades for Internet banking ■ State-of-the-art ATM system the most modern in Australia ■ Voice-recognition phone banking ■ Branches have been refitted and upgraded ■ Outsourcing is delivering benef
Slide 21: Our person2person approach is winning
Our person2person™ approach is winning
Slide 22: Customer Relationship Survey
Customer Relationship Survey Understands the 10 Better than other banks 6 value of relationship 8 4 6 2 4 0 2 -2 0 -4 -2 -6 -4 -8 -6 -10 CBA NAB CBA NAB Bank of Queensland Westpac Bank of Queensland Westpac Suncorp ANZ Suncorp ANZ
Slide 23: Customer Relationship Survey
Customer Relationship Survey A bank I would A bank you can trust recommend to others more than others 30 20 18 25 16 14 20 12 15 10 8 10 6 4 5 2 0 0 Queensland CBA NAB CBA NAB Bank of Westpac Bank of Queensland Westpac Suncorp ANZ Suncorp ANZ
Slide 24: What customers want
0.0 0.5 1.0 1.5 2.0 2.5 3.0 Apologise Understand me Extra effort Preferential Treatment Rewards Staff constant Treated well Thank me Surprise discounts Source: APAC Relationship Builder, Carlson Marketing Group Genuinely interested What customers want Contact choice 24 hours Recognition Up-to-date W
Slide 25: Customer Satisfaction
Customer Satisfaction Proportion of customers who are very or fairly satisfied Year ended June 2003 Bendigo Bank 85.8% Bank of Queensland 78.6% Adelaide bank 74.0% St George 72.3% Suncorp 71.2% ANZ 64.0% BankWest 62.2% Westpac 61.8% NAB 59.9% CBA 57.2% Source: Roy Morgan Research
Slide 26: The future looks bright....
The future looks bright…. “Big Small Bank”
Slide 27: Consolidate our Qld position
Consolidate our Qld position ■ Increase branch network ■ Stronger Business Banking presence ■ Greater focus SME market ■ Stronger deposit focus ■ Broader insurance capability ■ Financial services capability ■ Better products
Slide 28: Interstate expansion
Interstate expansion ■ Interstate expansion will be the cornerstone of our growth strategy ■ By 31 August 2004 we will have commenced our interstate expansion ■ By 31 August 2006 we are targeting a minimum of 100 branches across New South Wales and Victoria ■ Our recent acquisitions complement this
Slide 29: Our strategic focus
Our strategic focus ■ Expanding strongly whilst maintaining expense control and credit quality ■ Investing in our future ■ Our person2person™ banking program ■ Broader reach and scale ■ Target to be writing 5% of national home loan market share within 3-5 years ■ Key provider to the SME market Aim:
Slide 30: New challenges
2004 New challenges ■ BOQ faces new challenges, including: n Weakening housing market; n Expansion without sacrificing expense management; n Driving synergies from our acquisitions; n Realising benefits from new core banking system and PEP II; n Basel II; n Interstate expansion n Capital and funding
Slide 31: The platform
2004 The platform ■ BOQ has implemented and undertaken a long-term strategy for growth. ■ Infrastructure will be in place by March, 2004, including: n New IT platform through CSM n Qld base of 135 branches n Strong business banking arm n Interstate ATM and equipment finance platforms
Slide 32: Our goals
2004 Our goals ■ Key objectives for our 2004 FY are to: n Consolidate our branch network and expanded business banking capability in Queensland. ; n Combat any housing slowdown through geographical expansion, product diversity, and growing revenue streams; n Continue strong asset growth whilst maint
Slide 33: Strong growth continues
2004 Strong growth continues ■ First quarter 2004 results show strong growth continuing, including: n Lending approvals have doubled on the same quarter last year, and increased 21% on the last quarter 2003FY. ■ Asset growth ahead of plan ■ Strong liability growth ■ Re-affirming our full-year foreca
Slide 34: Our new vision
Our new vision “To be Australia’s leading regional bank, providing innovative personal and business financial solutions and offering the best customer service experience.”
Slide 35: Our Management team
Our Management team Bank of eet ete Queensland Annual General Meeting 2003
Slide 36: Our Management team
Our Management team Donna Brown Ross Norton Terry Crawford Robert Hines Jennifer Heffernan General Manager, General Manager, General Manager, Chief Financial Officer Chief Operations Retail Business Banking Financial Services, Officer Direct Channels and Marketing David Saville Les Steinke Sandy Dea
Slide 37: Bank of Queensland - New ideas in banking
Bank of Queensland New ideas in banking