Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — ABN AMRO Regional Banks Conference 2008
18 slides from Bank Of Queensland's conference presentation, Nov 26, 2008
Slide 1: Reshaping the small financials landscape in Australia
For personal use only Bank of Queensland ABN AMRO Regional Banks Conference 2008 “Reshaping the small financials landscape in Australia” Group Executive & CFO – Ram Kangatharan 26 November 2008
Slide 2: Bank of Queensland
Bank of Queensland For personal use only Retail oriented bank, headquartered in QLD ASX-listed, with market capitalisation ~$1.6bn S&P long term credit rating of BBB+ Loans under management of ~$30bn National footprint of 286 retail sites, 2,600 branded ATMs and 14 business banking centres Consisten
Slide 3: Core business – 'Low risk' retail banking
Core business – ‘Low risk’ retail banking For personal use only Retail Customers SME Customers Structured Business Banking Vehicles Australian Major OMB Banks Lending Mix1 ~$18.9bn ~$4.4bn ~$3.0bn Large Corporate Large Exposures Retail Business Equipment Lending Finance Retail BOQ Customer Brand Cre
Slide 4: Differentiated banking model
Differentiated banking model For personal use only The OMB model has proven to be a powerful distribution model, with growth rates superior to any other bank in Australia Expansion strategy based on rolling-out the Bank’s OMB operating franchise model – Unique model that provides BOQ with a sustaina
Slide 5: Track record of superior growth…
Track record of superior growth… For personal use only Total LUM Retail Deposits $26.3bn $14.0bn CAGR 29% CAGR 21% $4.5bn $5.7bn 2002 2008 2002 2008 ABN AMRO Regional Banks Conference 2008 4
Slide 6: Exceptional results
Exceptional results For personal use only Total Income NPAT CAGR 21.7% CAGR 28.1% $571m $155m $500m $367m $385m $102m $292m $82m $61m $68m $214m $45m 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 EPS Cost-to-Income Ratio 65.8% CAGR 13.4% 64.9% 64.5% 64.0% 62.6% 103c 93c 76c 68c 56.1% 6
Slide 7: Challenges
Challenges For personal use only Community trust Access to funding Cost of funding Economic environment Market power of the Majors Continuing to build scale So how is BOQ responding to these challenges..? ABN AMRO Regional Banks Conference 2008 6
Slide 8: Capital & Funding
Capital & Funding For personal use only Large scale system failures in the financial world have increased the focus on capital adequacy The global credit crisis has imposed significant constraints on traditional funding markets - Sub-debt, hybrid and securitisation markets have all been severely imp
Slide 9: Declining volatility/deposit growth
Declining volatility/deposit growth For personal use only Australia: 3 month BBSW rate to overnight indexed swap rate (LTM) Above system retail deposit growth (FY08) 3.0 30% 4 25%* 2.5 1.3x system 2.0 20% 19% % pts 1.5 3 1.0 2 10% 1 0.5 0.0 0% Nov 07 Jan 08 Mar 08 May 08 Jul 08 Sep 08 Nov 08 System
Slide 10: Regional consolidation accelerating
Regional consolidation accelerating For personal use only Commentary Market share by total gross loans and advances1 ` Active consolidation of regional banks 25 during current year c. 80% of market share – WBC and SGB 20 – CBA and Bankwest ` Likely to be further consolidation of both 15 Increasing g
Slide 11: Federal Government – Confidence Initiatives
Federal Government – Confidence Initiatives For personal use only Federal Government guarantees deposits Government stimulus plan and RBA rate cuts Revised three year deposit guarantee takes $10.4bn stimulus package announced in effect from 28 November 2008 October 2008 – deposits up to $1m fully gu
Slide 12: Fallen angels...Big is not always safe!
Fallen angels...Big is not always safe! For personal use only Proposed acquisition price Proposed acquisition price S&P AA-* S&P AA stable* S&P AA stable* S&P AA-* S&P AA stable* S&P AAA stable* (In bankruptcy) Fitch AA-* Bank of America takeover S&P AA- stable* S&P AA-* JPM takeover Moody A1* Takeo
Slide 13: The QLD economy remains in great shape
The QLD economy remains in great shape For personal use only Qld state final demand1 (GDP equivalent2) Highlights ` The Queensland economy has exceeded 9.0% national growth for last 12 consecutive years ... 8.0% forecast to achieve a 13th 7.0% ` Queensland population growth continues to 6.0% outstri
Slide 14: Credit Quality = Safety
Credit Quality = Safety For personal use only BOQ is expected to continue to experience write-offs well below its peers, particularly the Majors BOQ’s focus remains on well secured housing and SME Bad and Doubtful Debts (BDD) / Average Gross Loans lending in Qld & WA – the two strongest performing s
Slide 15: Prospects for FY09
Prospects for FY09 For personal use only Management continues to believe that EPS guidance is impractical given the volatility and uncertainty in the financial services landscape. Headwinds Tailwinds Retail cost of funds trending higher with Cost disciplines holding, deeper unpredictable competition
Slide 16: Summary
Summary For personal use only BOQ has no direct exposure to sub-prime, CDOs etc Low risk portfolio, major presence in QLD / WA Significantly less reliance on offshore funding than major banks All banks facing substantial pressure on funding costs. BOQ is responding by: - improved pricing for risk -
Slide 17: Summing up our value proposition
Summing up our value proposition For personal use only ABN AMRO Regional Banks Conference 2008 16
Slide 18: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Bank of Queensland Limited (BOQ) and is supplied on the following conditions which are expressly accepted and agreed to by each interested party (Recipient). This presentation does not purport to contain all the necessary inform
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