Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — 13th UBS Australian Financial Services Conference (June 2014)
17 slides from Bank Of Queensland's conference presentation, Jun 25, 2014
Slide 1: Presentation to the 13th UBS Australian Financial Services Conference
Anthony Rose Chief Financial Officer Presentation to the 13th UBS Australian Financial Services Conference 25 June 2014 Bank of Queensland Limited ABN 32 009 656 740. AFSL No 244616.
Slide 2: Key messages
Key messages 1 Simple, well executed strategy delivering record results 2 Disciplined approach to growth has continued – not compromising quality Proactive management of levers to deliver results – strong improvement in 3 margin, cost to income, risk metrics and ROTE 4 Balance sheet quality and stre
Slide 3: Proactive margin management
Proactive margin management Strong 5bps improvement on 2H13 2.10% 2.05% Tailwinds Rating upgrades reducing wholesale costs and opening up counterparty ( ) limits ( ) Deposit pricing adjustments with lower lending growth Headwinds High margin asset run-off (eg. Line of Credit) Lending front
Slide 4: Run-off & deleveraging restraining growth
Run-off & deleveraging restraining growth Focus on improving quality of the book and building a sound platform for growth ( ) ( ) Line of Credit (LOC) run-off still high as portfolio re- weighting continues – down to $3.9bn from $5.2bn in Feb 2012 QLD continues to underperform national system
Slide 5: Multi-channel: improving momentum in Retail channels
Multi-channel: improving momentum in Retail channels Retail channels: source of lending applications ~1,000 brokers now accredited, lending Broker applications flow doubled between 1Q14 and 2Q14 Improved corporate branch productivity Corporate following restructure & refocus – lending Total = $7
Slide 6: Risk-Return: focus on profitable growth
Risk-Return: focus on profitable growth Targeting growth and expansion in higher margin Business Banking, but not Commercial loans: diversifying by geography(1) compromising price or risk Sound risk management practices embedded in the lending processes across the business, contributing to quali
Slide 7: Operational excellence: reinvesting in future growth
Operational excellence: reinvesting in future growth Reinvestment for growth: Lending platform – digitisation, straight-through processing Consolidation of technologies across the group Front line staffing and capability uplift, particularly in Business Banking Savings harvested in: Proc
Slide 8: Talent & culture: driving customer satisfaction
Talent & culture: driving customer satisfaction Retail customer satisfaction metrics improving Net Promoter Scores – February 2014(1) 68% of customers classified as ‘high advocates’ (scored BOQ ANZ CBA NAB WBC 8-10/10) – ranked #1 in February 2014 among all major +17.5 -7.5 +1.5 +1.6 -10.9 banks
Slide 9: Impaired levels now in line with peers
Impaired levels now in line with peers 9
Slide 10: Good progress towards management targets
Good progress towards management targets FY15+ Target Metrics(1) 1H14 Actual (from 2H12)(5) BOQ asset growth -Retail 0x system 1.2x system -Business(2) 2.4x system 1.5x system Net Interest Margin 177bps Low-Mid 160s Expense growth(3) 2% < Inflation Cost to Income 43.8% Low 40s Bad & Doubtf
Slide 11: Opportunities for growth
Opportunities for growth Source of origination National roll out and scale up of BDM & Broker processing resource – target to double accredited brokers & aggregators from 1H14 to 2H14 15% ~5% Digital Leverage refresh of digital assets to drive online sales and lead generation ~20% New sources of
Slide 12: Opportunities for growth
Opportunities for growth Business Banking expansion Continue to invest in existing metropolitan hubs with planned expansion into regional and rural Victoria / WA over the next 12 months Focus on credit quality, pricing for risk and achieving return hurdles Remain committed to growing a strong,
Slide 13: Investec businesses are a good strategic fit
Investec businesses are a good strategic fit Specialist provider of practice and personal finance to medical, dental and veterinary practitioners (82% of outstanding loans) and accounting and other professionals (18% of outstanding loans) $2.2bn of Professional Finance Mortgage originator and ma
Slide 14: Professional Finance – Financial Profile
Professional Finance – Financial Profile Loan Book Growth Asset Spread(1) $bn % Non-Interest Income as a % of Gross Lending Assets (2) Bad & Doubtful Debts Expense as a % of Gross Lending Assets (2) % % Source: Acquired Businesses’ management. ¹ Spread to swap curve at last repricing date. S
Slide 15: Summary & outlook
Summary & outlook Continued focus on execution with disciplined approach to growth, margin, risk 1 management and costs 2 Increasing returns to shareholders off a lower risk, lower volatility platform Further growth potential in Retail distribution and Business Banking expansion, as 3 well as intern
Slide 16: Important notices
Important notices Financial amounts All dollar values are in Australian dollars (A$) 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 17: Vrs POSSIBLE to LOVE A BANK li
Vrs POSSIBLE to LOVE A BANK li
Bank of Queensland — 13th UBS Australian Financial Services Conference (June 2014) on 6ix