Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — UBS Australian Financial Services Conference 2008
14 slides from Bank Of Queensland's conference presentation, 2008
Slide 1: Bank of Queensland
Bank of Queensland Australian Financial Services - UBS Conference 2008 - UBS Conference 2008 1
Slide 2: Progress Update
Progress Update Update on guidance Proceeds from sale of Visa shares received Considerable success on funding our growth Core distribution model continues to outperform system Asset quality remains high BoQ model consolidator of choice in Australian Financial Services UBS Conference 2008 2
Slide 3: Market guidance
Market guidance Management maintains guidance (+9cps norm cash EPS v pcp), despite PEPS treated as fully dilutive (-7cps); and $13m of revenue related to securitisation and FV adjustments in pcp not being available in FY08 due to Financial market conditions (- 6cps)…. Headwinds Tailwinds Wholesale f
Slide 4: Market guidance (cont.)
Market guidance (cont.) NIM in 2H08 is expected to stabilise vs. 1H08 with an upward bias Proceeds from the sale of Visa IPO shares $6.3m after tax will be normalised out: - Part of the gains will offset mark to market losses incurred on long duration bonds which have been sold out of the Trading Bo
Slide 5: Progress on funding our growth
Progress on funding our growth Our strategy on diverse funding sources with close investor relationships that understand our model and lower risk profile is paying dividends: - $628m EHP securitisation (April 08) - $500m RMBS securitisation viz. private placement (settle June 08) - $500m additional
Slide 6: Lending growth outperforming system in a more difficult market
Lending growth outperforming system in a more difficult market…. Housing growth Commercial growth Ç 25% * Ç 14% * 25% 14% 10% 12% BOQ System BOQ System * For 2H08 – not a full 6-month period. UBS Conference 2008 6
Slide 7: Retail deposit growth continues
Retail deposit growth continues… Focus on retail deposits, especially stickier (but more expensive) TD’s continues to gain traction 25% 24% 13% 7% BOQ System BOQ System 2H07 2H08 System System * Excludes growth through the acquisition of Home Building Society Ltd. System System System: APRA monthly
Slide 8: Strong asset quality continues
Strong asset quality continues.. Focus remains on well secured housing and SME lending We expect 2H08 BDD outcomes in line with recent performance Underlying bad debts $9.8m $5.3m* $11.2m $7.9m $6.4m 1H07 2H07 1H08 2H08 * Forecast for remainder of 2H08 UBS Conference 2008 8
Slide 9: Portfolio quality
Portfolio quality Arrears 90+ days (% of portfolio, excluding securitised loans) 1.00% 2H06 0.75% 1H07 2H07 0.50% 1H08 2H08* 0.25% 0.00% Retail Business Leasing Home BS * As at end of May 2008 UBS Conference 2008 9
Slide 10: Longer term outlook
Longer term outlook Our concentration in Qld and WA continues to pay dividends in terms of growth and superior asset quality Unemployment trend is the key driver for our business….key dependency on continued growth in business investment Our commercial lending is more disciplined and pricing for ris
Slide 11: Our model: lower risk, less capital intensive and growth driven
Our model …. lower risk, less capital intensive and growth driven Structured Vehicles Retail Customers SME Customers Unsecured/Structured/High Risk Australian Banking Business Banking OMB Lending Mix* ~$18.1 B ~$4.3 B ~$3B ~$1.7B Large Corporate Equipment Finance Business Lending Large Exposures Lar
Slide 12: Organic growth capability of model
Organic growth capability of model The exponential growth track record from greenfield branch openings is proven. However, expected maturity not evident… Existing mature Qld network continues to grow well above system OMB maturity (Theory) Qld OMB Network- Mature Branches $150m 22% 22% $125m $100m 1
Slide 13: Uniquely productive Retail banking network
Uniquely productive Retail banking network We have now converted 22 corporate branches to OMBs Average monthly settlements have increased 62% post conversion BoQ has a unique synergy when acquiring any retail network ….creates higher affordability and higher accretion Annualised growth before and af
Slide 14: Value Accretion
Evolution of our Strategy High margin/ Targeting Higher low capital margin niche Plays intensity Value Accretion Acquisition of Pioneer & Geographic Home in WA- focused Scale M&A Higher growth Geo Plays Interstate Organic expansion into a National footprint & ATM Expansion fleet High Growth coupled
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