Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Shareholder Meeting (December 2008)
21 slides from Bank Of Queensland's shareholder meeting presentation, Dec 11, 2008
Slide 1: Welcome to Bank of Queensland's Annual General Meeting
For personal use only Welcome to Bank of Queensland’s Annual General Meeting 2008 Annual General Meeting 1
Slide 2: Managing Director's address
For personal use only Managing Director’s address Mr David Liddy 2008 Annual General Meeting 2
Slide 3: Strong financial results
Strong financial results For personal use only FY07 FY08 Normalised cash profit after tax $106.1m $155.4m 46% Cash EPS (normalised fully diluted) 93.0¢ 102.9¢ 11% Ordinary dividend 69¢ 73¢ 6% Loan growth (pcp) 27% *23% Retail deposit growth (pcp) 33% *25% Net interest margin 1.81% 1.67% (14bps) Cost
Slide 4: Secure, strong, flexible, unique
Secure, strong, flexible, unique For personal use only 2008 Annual General Meeting 4
Slide 5: Secure
Secure For personal use only f134 year old organisation fRetail bank with low-risk assets fNo exposure to sub-prime fStringent surveillance on the quality of our balance sheet fCommercial lending extremely disciplined fGovernment deposit guarantee 2008 Annual General Meeting 5
Slide 6: Strong
Strong For personal use only fAnother record result fLeveraging Queensland and WA economies fStrong and growing retail funding fSuccessful acquisitions and integrations Pioneer Building Society (central Queensland) Home Building Society (WA) 2008 Annual General Meeting 6
Slide 7: Merger successfully completed
Merger successfully completed For personal use only fIntegration completed nine months ahead of schedule fProvided an additional 24 branches, $2.7b in loans and advances and $2.5m in deposits 2008 Annual General Meeting 7
Slide 8: The QLD economy remains in good shape
The QLD economy remains in good shape For personal use only Qld state final demand1 (GDP equivalent2) Highlights ` The Queensland economy has exceeded national growth for last 12 consecutive years ... forecast to 9.0% achieve a 13th 8.0% 7.0% ` Queensland population growth continues to outstrip 6.0%
Slide 9: Flexible
Flexible For personal use only fWe can quickly respond to changing market conditions fSwitched to maximising retail deposits l Deposits grew 25% (excluding Home) in FY08 fFocused on cost control 2008 Annual General Meeting 9
Slide 10: Refocusing on deposits & reducing costs
Refocusing on deposits & reducing costs For personal use only fRetail deposits fCost to income ratio 65.8% $14.0b 64.5% 62.6% $9.2b $6.9b $5.8b 56.1% 2005 2006 2007 2008 2005 2006 2007 2008 2008 Annual General Meeting 10
Slide 11: Money magazine best of the best
Money magazine best of the best For personal use only Our WebSavings Account has won the Best Savings Account category in Money Magazine’s 2009 Best of the Best awards WebSavings Account 2008 Annual General Meeting 11
Slide 12: Unique
Unique For personal use only fUnique Owner-Managed Branch network fSuperior sales productivity fMinimal branch start-up costs fVariable cost structure aligned to performance fEnhanced customer service fSupported by high-touch SME business banking services 2008 Annual General Meeting 12
Slide 13: Our responsibilities to stakeholders
Our responsibilities to stakeholders For personal use only fAll our stakeholders benefit: our shareholders, customers, employees, the community and environment in which we operate and the government and regulators we comply with 2008 Annual General Meeting 13
Slide 14: FY09 progress and prospects
FY09 progress* and prospects For personal use only Tailwinds* Headwinds cAnnualised LUM growth 12% and deposit dRetail cost of funds trending higher with unpredictable competition growth 34% cRetail deposits growth YTD funding ~116% of dWholesale markets continue to come under asset growth pressure
Slide 15: Project Pathways – the next growth phase
For personal use only Project Pathways – the next growth phase 2008 Annual General Meeting 15
Slide 16: BOQ has an enviable track record
BOQ has an enviable track record For personal use only Total LUM Retail deposits $14.0b $26bn CAGR 29.2% CAGR 29.5% $19bn $9.2b $15bn $12bn $11bn $6.9b $7bn $5.8b 2003 2004 2005 2006 2007 2008 2005 2006 2007 2008 EPS 103c CAGR 13.4% 93c Cost-to-Income Ratio 65.8% 80c 64.9% 64.5% 68c 64.0% 62.6% 62c
Slide 17: Core focus – low risk retail banking
Core focus – low risk retail banking For personal use only Low risk banking LUM by Product (31 Aug 2008) Retail lending of ~72% of LUM (8/08A) 11% - low doc/unsecured personal of ~5% Well positioned with 77% exposure to QLD and WA 17% Retail No direct exposure to sub-prime, CDOs, etc Commercial Low
Slide 18: High performance growth model…
High performance growth model… For personal use only f BOQ’s Owner Manager Branch (OMB) distribution model gives the Bank a substantial edge on growth Average monthly settlements typically increase by ~65% post Corporate to OMB conversion – focused on customer service BOQ has delivered above system
Slide 19: Growth opportunities…
Growth opportunities… For personal use only f BOQ now has a sizable high performance OMB platform to pursue the ‘opportunity gap’ to the Majors The ‘high growth’ platform has been built ... ... to gain market share2 25% Branch numbers CAGR 18.8% 20% Aggregate market share: 80% 284 235 215 15% 173 19
Slide 20: Project Pathways – the next growth phase
Project Pathways – the next growth phase For personal use only Objectives Approach Support growth 1 ` Organic business growth platform ` Portfolio optimisation Consolidation participant 2 ` M&A activity – building societies, regional banks Comprehensive evaluation of ` Introduce a ‘strategic partner
Slide 21: Thank you
For personal use only Thank you 2008 Annual General Meeting 21
Bank of Queensland — Shareholder Meeting (December 2008) on 6ix