Bank of Queensland Limited · ASX:BOQ
Bank of Queensland — Shareholder Meeting (December 2006)
36 slides from Bank of Queensland's shareholder meeting presentation, Dec 7, 2006
Slide 1: Annual General Meeting, Thursday December 7
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Slide 2: Chairman's Address
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Slide 3: BOQ in the News
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Slide 4: Managing Director's Presentation
MANAGING DIRECTOR’S PRESENTATION
Slide 5: A five year transformation is complete
A five year transformation is complete $16 UFJ & ATM Interstate BOQ Share Price Solutions expansion 75 Interstate acquisitions commenced branches Established Transformation Qld expansion commences commenced Orix Debtor with new team Finance Ceased acquisition using $5 mortgage EDS Out- Upgrade to br
Slide 6: Now is the time to grow
Now is the time to grow We have - spent five years laying foundations for growth - transformed the Bank - become a national financial institution - done what we said we would do - increased shareholder value - developed a plan for the future
Slide 7: FY2006 Results
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Slide 8: 2006: A strong financial performance
2006: A strong financial performance 2005 2006 Normalised distributable net profit $67.5m $82.0m Ï 21% Normalised cash EPS (Distributable earnings) 67.9¢ 76.4¢ Ï 12.5% Ordinary dividend 48¢ 57¢ Ï 19% Loan approvals $7.5b $10.0b Ï 33% Loan growth 14% 22% 1.6x system Net interest margin 1.83% 1.83% -
Slide 9: Lending growth leading system and peers
Lending growth leading system and peers Strong growth in all areas Overall 1.6x system growth 29% 22% 23% 21% 14% 16% System 14% BOQ System 9% System BOQ BOQ BOQ System Housing 06 Commercial 06 Consumer 06 Overall lending growth 06
Slide 10: Retail deposit growth leading system and peers
Retail deposit growth leading system and peers 20% 18% 10% 9% System System BOQ BOQ FY 2005 FY 2006 System = APRA monthly statistics, household deposits
Slide 11: Sharing the Gains
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Slide 12: Growing shareholder value
Growing shareholder value $2,900 $2,700 $2,500 $1,000 invested 23% average $2,300 Value of annual Total $2,100 Shareholder $1,900 Return. $1,700 $1,500 $1,300 $1,100 $900 5 3 1 4 6 6 4 5 2 3 2 2 4 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 ay ep ec ug ov eb ug pr ct ar an un ul -O -M -J -M -A -S -D -N -
Slide 13: Increasing cash diluted EPS growth
Increasing cash diluted EPS growth Normalised Normalised EPS EPS growth growth of of 12.5% 12.5% 76.4¢ 67.9¢ 61.7¢ 55.2¢ 48.0¢ 2002 2003 2004 2005 2006 Based on Normalised Earnings = After tax profit excluding the impacts of significant items & excluded amortisation of Customer Contracts
Slide 14: Increasing dividends
Increasing dividends 15¢ 1st half 30¢ 2nd half 25¢ 22¢ Special 20¢ 15¢ 27¢ 21¢ 23¢ 17¢ 14¢ 2002 2003 2004 2005 2006
Slide 15: A Platform for Growth
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Slide 16: Expanding breadth and reach
Expanding breadth and reach Focused on expanding: - branch footprint - business banking presence - product range - both Bank-manufactured product and alliances to capitalise on our distribution expansion Acquired ORIX Debtor Finance Merger with Pioneer Permanent Building Society - will give us
Slide 17: Strengthening national distribution
Strengthening national distribution 2,531 touchpoints (as at 7 December 2006)
Slide 18: Achieved target of 75 non-Queensland branches
Achieved target of 75 non-Queensland branches 260 240 215 Non-Qld 120 OMBs 173 100 75 142 34 5 120 98 Qld 137 139 140 140 140 OMBs and 120 Corporate 98 Branches 40 62 79 82 85 OMBs OMBs OMBs OMBs OMBs Aug 02 Aug 03 Aug 04 Aug 05 Aug 06 Aug 07 Aug 08
Slide 19: Our national network
Our national network National branch expansion continues: - two more branches to open in Western Australia - first Tasmanian branch opened - first South Australian branches to open - Now have branches in every Australian State and Territory Our target – 25 new branches this year. - Last year we
Slide 20: Growing our business banking presence
Growing our business banking presence Now have 13 business banking centres Strategy to achieve SME dominance in chosen segments in Queensland Strong growth in equipment & debtor finance - Equipment Finance - Receivables of $2.1b: more than doubled since UFJ acquisition - achieved more than $1b
Slide 21: Enhancing our product range
Enhancing our product range We introduced: - wealth management (Genesys) - non-conforming loan (Challenger) - margin loan (Macquarie) - consumer credit insurance (St Andrews) - commercial insurance (CGU) - state-of-the-art EFTPOS terminals (Keycorp) We launched: - Reverse Charges Account and Web
Slide 22: Brand positioning
Brand positioning New campaign - New brand positioning highlights unique benefits delivered by BOQ - Take advantage of general mistrust and cynicism towards banks - Presents BOQ as the real alternative - Our mission: raise the expectations of banking service for all Australians The first step is
Slide 23: Strong Organic Growth
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Slide 24: Satisfied customers
Satisfied customers 55% Retail Commercial 86% 53% 82% 79% 75% 74% 46% 67% 43% 65% 64% 38% 38% Z A B Q Z e ac o A B p Q e ac N rg N ig rg or B A B A O BO tp tp A A C N C N B nd eo eo nc es es G Be G Su W W St St July 06 Roy Morgan Research Queensland Customer Satisfaction October 06 East & Partners B
Slide 25: Community initiatives
Community initiatives Community partnerships - investment in partnerships that help young people - cover health, education, welfare, the arts and the environment - highlights: expanding Red Cross Night Café services co-founding Operation Financial Literacy Staff initiatives - Dollar-for-Dollar P
Slide 26: Shareholder benefits
Shareholder benefits Goal to reward shareholder loyalty with more than healthy dividends Includes discounted / bonus rates, waived fees, bonus trasactions, etc on most popular products: - Credit cards - Personal loans - Home loans - Line of credit - Premier Investment Account
Slide 27: Growing the Platform
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Slide 28: We have a strong growth platform
We have a strong growth platform Key objectives: - Continue to expand national footprint - Consolidate in Queensland with Pioneer merger - expand interstate with OMBs and business banking capability - Growth through aggressive customer acquisition - Continue to outperform the market and deliver st
Slide 29: HBF: Growing our revenue streams
HBF: Growing our revenue streams HBF is Western Australia’s largest health insurer BOQ-manufactured, HBF-branded products being provided to their 900,000+ members Alliance allows us to more fully use core banking platform and EDS processing capability The first products began selling in Nove
Slide 30: Pioneer Permanent: a great fit
Pioneer Permanent : a great fit Pioneer shareholders voted 99% in favour of merging with BOQ on November 23 Court approved merger on Tuesday (December 4) Offer for 100% of Pioneer’s issued capital at $4.78 per share Pioneer valued at $49.6 million Assets of approx $500m, 100% retail funded
Slide 31: Confident outlook
Confident outlook Will continue to expand footprint nationally - focus on new markets - leverage from strength of Queensland economy Competition will remain intense, but we are geared to meet it Targeting complementary strategic acquisitions Positioned for continued strong growth; Financia
Slide 32: So far in 2007
So far in 2007 Momentum continues in first quarter: - Total lending approvals up 20% pcp - Housing approvals up 30% pcp - Total deposits up 21% pcp Rolling 12 month performance: - Lending up 23% - Deposits up 20% Margins maintained Portfolio quality remains sound
Slide 33: Financial Goals
Financial Goals For 2007 - above system (1.5x–2x) asset and deposit growth - maintain credit quality - cash EPS growth of 10%-12%. - 1% reduction in cost-to-income ratio For medium-term - Substantially above system growth in lending and deposits - EPS growth of 10%-12% over next 3 years - Improv
Slide 34: Summing up our value proposition
Summing up our value proposition
Slide 35: Our leaders
Our leaders Robert Hines Donna Quinn Ross Norton Jennifer Heffernan Group Executive and Group Executive Group Executive Group Executive and Chief Financial Officer Franchise Banking Banking Chief Operations Officer Bruce Auty Jenny Brice Iain Blacklaw Len Stone Group Executive Group Executive Group
Slide 36: Annual General Meeting
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