Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Shareholder Meeting (December 2010)
34 slides from Bank Of Queensland's shareholder meeting presentation, Dec 9, 2010
Slide 1: Welcome to Bank of Queensland's Annual General Meeting
1 For personal use only Welcome to Bank of Queensland’s Annual General Meeting Annual General Meeting Annual General Meeting 2009 2010 1
Slide 2: Chairman's address
2 For personal use only Chairman’s address Annual General Meeting 2009 Mr Neil Summerson 2
Slide 3: Managing Director's address
3 For personal use only Managing Director’s address Annual General Meeting 2009 Mr David Liddy 3
Slide 4: Our stakeholders
Our stakeholders 4 For personal use only Annual General Meeting Customers 2009 Owner-Managers Community Shareholders 4
Slide 5: The 'it's personal' brand relaunch
The ‘it’s personal’ brand relaunch 5 For personal use only 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 6: Result continues momentum
6 Result continues momentum For personal use only 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 (
Slide 7: Growth well ahead of the industry average
7 Growth well ahead of the industry average For personal use only 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 8: Continued expense management
8 Continued expense management For personal use only Expenses slightly ahead of full year guidance… expense management disciplines delivering a more efficient business Cost-to-income ratio* Expenses* $314.0m 2% $320.6m 62.6% $13.8m $16.3m Admin $85.5m $87.2m 56.1% Operating $64.4m $68.3m Computer 49
Slide 9: Strong capital base and liquidity
9 Strong capital base and liquidity For personal use only 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 i
Slide 10: Network continuing to grow
10 Network continuing to grow For personal use only 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 Majority OMB income comes from existing to i
Slide 11: CIT A&NZ and St Andrew's acquisitions
11 CIT A&NZ and St Andrew’s acquisitions For personal use only 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
Slide 12: BOQ National Finance
12 BOQ National Finance For personal use only 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 relat
Slide 13: St Andrew's Insurance
13 St Andrew’s Insurance For personal use only 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 throug
Slide 14: A more diversified business – operating business lines
A more diversified business – operating 14 For personal use only 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 Relations
Slide 15: Group Executive team
Group Executive team 15 For personal use only 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 an
Slide 16: New products and services
16 For personal use only New products and services Annual General Meeting 2009 Mr David Liddy 16
Slide 17: Greater ATM access
17 Greater ATM access For personal use only 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
Slide 18: Filling product suite gaps
Filling product suite gaps 18 For personal use only 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 M
Slide 19: The Save to Win Account
19 The Save to Win Account For personal use only 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 custom
Slide 20: Your chance to win!
20 Your chance to win! For personal use only Annual General Meeting 2009 20
Slide 21: Shareholder benefits package
21 Shareholder benefits package For personal use only 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,
Slide 22: Outlook
22 For personal use only Outlook Annual General Meeting 2009 Mr David Liddy 22
Slide 23: Challenges ahead
23 Challenges ahead For personal use only 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 b
Slide 24: Competition in banking
24 Competition in banking For personal use only 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 “level
Slide 25: Prospects for FY11 and beyond
25 Prospects for FY11 and beyond For personal use only 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 i
Slide 26: Outlook
26 Outlook For personal use only $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
Slide 27: Formal Business
27 For personal use only Welcome to Bank of Queensland’s Annual General Meeting Formal Business Annual General Meeting 2009 Mr Neil Summerson 27
Slide 28: Resolution 2a
28 Resolution 2a For personal use only f Re-elect Mr William Kelty AC as a director of the company Votes % For 69,531,913 88.29 Open 2,923,392 3.71 Total For and Open 72,455,305 92.00 Against 6,294,392 7.99 Abstain 453,308 N/A Annual General Meeting 2009 28
Slide 29: Resolution 2b
29 Resolution 2b For personal use only f Re-elect Mr Steve Crane as a director of the company Votes % For 75,328,881 95.71 Open 2,940,901 3.74 Total For and Open 78,269,782 99.45 Against 432,137 0.55 Abstain 501,086 N/A Annual General Meeting 2009 29
Slide 30: Resolution 2c
30 Resolution 2c For personal use only f Re-elect Mr David Willis as a director of the company Votes % For 75,264,843 95.70 Open 2,961,717 3.77 Total For and Open 78,226,560 99.47 Against 423,632 0.54 Abstain 552,813 N/A Annual General Meeting 2009 30
Slide 31: Resolution: Ratification of issue of Convertible Notes
31 Resolution 3 For personal use only f Ratification of issue of Convertible Notes Votes % For 73,747,442 94.26 Open 3,020,490 3.86 Total For and Open 76,767,932 98.12 Against 1,474,320 1.88 Abstain 960,753 N/A Annual General Meeting 2009 31
Slide 32: Resolution: Non-Executive Directors' Remuneration
32 Resolution 4 For personal use only f Non-Executive Directors’ Remuneration Votes % For 70,563,677 92.91 Open 1,349,444 1.78 Total For and Open 71,913,121 94.69 Against 4,032,863 5.31 Abstain 731,570 N/A Annual General Meeting 2009 32
Slide 33: Resolution: Adopt Remuneration Report
33 Resolution 5 For personal use only f Adopt Remuneration Report Votes % For 59,869,679 76.73 Open 2,948,856 3.78 Total For and Open 62,818,535 80.51 Against 15,211,453 19.49 Abstain 1,173,017 N/A Annual General Meeting 2009 33
Slide 34: For personal use only
34 For personal use only Annual General Meeting 2009 34
Bank of Queensland — Shareholder Meeting (December 2010) on 6ix