Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — UBS 12th Annual Australian Financial Services Conference (June 2013)
15 slides from Bank Of Queensland's conference presentation, Jun 19, 2013
Slide 1: Bank of Queensland
Bank of Queensland Anthony Rose Chief Financial Officer UBS 12th Annual Australian Financial Services Conference 19 June 2013
Slide 2: Refocus of the organisation
Refocus of the organisation Target markets Value propositions Strategy Operating model Leadership behaviours Culture Brand Identity Mindset change Attributes Structure & systems Aspirations
Slide 3: Path to rebuild
Path to rebuild Operational Risk and Compliance Risk processes (front and back end) & policies Initial focus on balance sheet and asset Virgin Money quality Australia MIS & build-out performance management Strategic pillars & low hanging fruit New Executive team put in place
Slide 4: Increased provision coverage and capital
Increased provision coverage and capital Collective Provision & General Reserve for Credit Losses(1) / RWA v Peers 1.17% 1.02% 1.03% 1.01% 0.99% 0.97% 0.47% 0.11% 0.06% 0.06% 0.76% 0.26% 0.59% 0.65% 0.92% 0.95% 0.93% 0.70% 0.71% 0.43% 0.11% BOQ 1H13 Regional 1 Regional 2 Major 1 Major 2 Major 3 Majo
Slide 5: Path to rebuild
Path to rebuild Operational Risk and Compliance Risk processes (front and back end) & policies Initial focus on balance sheet and asset Virgin Money quality Australia MIS & build-out performance management Strategic pillars & low hanging fruit New Executive team put in place
Slide 6: Talent, capability & culture
Talent, capability & culture New New Executive team on-boarded between March and CEO and December 2012 – extensive experience Executive Team Refresh at next levels Existing talent at next levels complemented by of management selected new hires Diversity and staff engagement across the Diversity and
Slide 7: Path to rebuild
Path to rebuild Operational Risk and Compliance Risk processes (front and back end) & policies Initial focus on balance sheet and asset Virgin Money quality Australia MIS & build-out performance management Strategic pillars & low hanging fruit New Executive team put in place
Slide 8: Risk processes and policies
Risk processes and policies BDDs to GLA (bps) 1.0% Housing 90 DPD 3% Commercial 90 DPD 1H13 asset growth(1) 200 194 6% 0.92% 0.87% 2.74% 2.43% 0.79% 2.10% 43 1.26% 40 34 0.59% 0 0.5% 0% -1% Retail Commercial Aug-11 Feb-12 Aug-12 Feb-13 Sep-11 Mar-12 Sep-12 Mar-13 Aug-11 Feb-12 Aug-12 Feb-13 Post run
Slide 9: Path to rebuild
Path to rebuild Operational Risk and Compliance Risk processes (front and back end) & policies Initial focus on balance sheet and asset Virgin Money quality Australia MIS & build-out performance management Strategic pillars & low hanging fruit New Executive team put in place
Slide 10: 4 strategic pillars
4 strategic pillars Broker channel rollout, digital-social refresh and replacement in development, optimal retail 1. Multi-channel footprint build, branch capability upgrade optimisation Continued investment in Business Banking capability by geography and industry Virgin Money Australia acquisition
Slide 11: Path to rebuild – work in progress
Path to rebuild – work in progress Operational Risk and Compliance Risk processes (front and back end) & policies Initial focus on balance sheet and asset Virgin Money quality Australia MIS & build-out performance management Strategic pillars & low hanging fruit New Executive team put in place
Slide 12: Key Management Targets
Key Management Targets Metrics(1) 1H13 Actual FY13 Target FY15+ Target(5) BOQ asset growth(2) - Retail 0.8x system 1.0x system 1.2x system BOQ +6.1% 1.0x system 1.5x system - Business(3) System -0.6% Net Interest Margin 166bps Low-Mid 160s Low-Mid 160s Expense growth -3% YTD < Inflation < In
Slide 13: Outlook
Outlook Economic and business conditions mixed although signs of residential property market improvement in SE Queensland Limited exposure to mining through Finance and Commercial books Asset quality continues to improve with impaired assets trending downwards, a result of the Bank’s new loan origin
Slide 14: Important notices
Important notices Financial amounts All dollar values are in Australian dollars (A$) and financial data is presented as at the date stated. Pro-forma financial information and past information provided in this Presentation is for illustrative purposes only and is not represented as being indicative
Slide 15: NS (T'S POSSIBLE to
NS (T'S POSSIBLE to LOVE A BANK he. Bank of Queensland Limited ABN 32 OOF 54 740. AFSL No. 4016.
Bank of Queensland — UBS 12th Annual Australian Financial Services Conference (June 2013) on 6ix