Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — RBS Morgans Institutional Conference 2010
16 slides from Bank Of Queensland's conference presentation, Sep 15, 2010
Slide 1: RBS Morgans Institutional Conference
RBS Morgans Institutional Conference 15 September 2010 Changing consumer behaviours in today’s environment Bank of Queensland Limited ABN 32 009 656 740
Slide 2: Today's environment post-GFC
Today’s environment post-GFC Current environment Australian economy shown resiliency; stabilised relatively quickly and continues to grow around trend Consumer spending has remained relatively modest even as confidence has improved; increased consumer savings and a much more cautious view on riskier
Slide 3: Consumer risk appetite… cautious approach
Consumer risk appetite… cautious approach Consumers and banks had become increasingly levered prior to GFC, largely a result of the availability of inexpensive credit The Australian economy has held up well compared to global peers and is currently growing at around its trend Consumer confidence has
Slide 4: System credit growth
System credit growth Australian economy has proven to be resilient – on track to record its 20th year of continuous growth Housing market continues to be well supported, although current trend is slowing post First Home Owners grant & economic uncertainty Business credit growth has been negative and
Slide 5: Shift in funding sources
Shift in funding sources Liquidity crisis during GFC demonstrated over reliance on short term wholesale funding Banks turned towards more stable retail deposits and long term funding sources, including increased capital issuance Funding composition of banks in Australia 5 Bank of Queensland Limited
Slide 6: Increased funding costs
Increased funding costs GFC has had a material impact on the cost and composition of funding sources for all banks Liquidity crisis in wholesale markets has substantially increased funding costs, and put renewed focus on more expensive retail deposits and long term funding sources Availability of fu
Slide 7: 'Flight to safety' trend……
‘Flight to safety’ trend…… Post-GFC consumers have generally become more cautious in their financial habits, borrowing less and saving more Consumers have generally ‘bunkered down’ to avoid more risk assets and taken a ‘flight to safety’ approach Increased competition for retail deposits and growing
Slide 8: Impact of higher funding costs
Impact of higher funding costs Increased funding costs and deteriorating credit conditions have resulted in margin pressure across the banks Funding pressure has led to an increase in lending rates above cash rate movements since the GFC During the peak of the GFC, banks were active in repricing the
Slide 9: Impact of regulatory reform
Impact of regulatory reform As a result of the GFC, a number of regulatory reforms have been implemented or are being proposed Core regulatory reform by the Basel Committee on banking supervision Regulators pushing for a banking system that has higher levels of capital with lower leverage, and highe
Slide 10: Changing banking landscape
Changing banking landscape Housing loans (June 2010)1 The consumer is looking for a ‘real’ alternative 28.6% 26.8% to the major banks and BOQ is well positioned to take advantage of this opportunity ~$85bn ~$41bn ~$22bn 14.3% 14.1% 8.3% 4.0% 3.6% 2.8% 2.5% 2.2% 1.6% 1.63 0.8% 0.8% 0.6% tiC G IN c a
Slide 11: BOQ opportunity
BOQ opportunity The takeovers of BankWest and St George by major banks has left a void of real alternatives for small business finance in Australia The OMB model is uniquely qualified and productive in growing our lending platform and successfully leveraging our personal service proposition Business
Slide 12: BOQ as the real alternative
BOQ as the real alternative Organisation changes made through the GFC have embedded the ‘small bank’ differentiated culture and processes Focused distribution channel recognises the target segment of retail customers and SME customers; not at the corporate end of town Market beating value propositio
Slide 13: Evolution of our strategy
Evolution of our strategy High margin/ Expand / acquire high low capital margin/low capital intensity products Value Accretion Acquisition of Pioneer & Geographic, Home in WA- focused higher scale M&A growth geo plays Interstate Organic expansion into a expansion national footprint & ATM fleet High
Slide 14: Outlook for FY10 and beyond
Outlook for FY10 and beyond BOQ has emerged from the GFC as a stronger organisation - kept a disciplined approach of ‘sticking to our knitting’ Our OMB model has continued to grow and demonstrate its resilience, further establishing its credibility as a branch distribution model Our target customers
Slide 15: Disclaimer
Disclaimer 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 constitute any form of advice and does not purport to contain all
Slide 16: Bank of Queensland Limited ABN 32 009 656 740
16 Bank of Queensland Limited ABN 32 009 656 740
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