Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Shareholder Meeting (November 2013)
16 slides from Bank Of Queensland's shareholder meeting presentation, Nov 27, 2013
Slide 1: Managing Director's update
Managing Director's update Stuart Grimshaw Managing Director & CEO Annual General Meeting 27 November 2013 17's possiBle 40 LOVE A BANK ly Bankof Queensland Limited ABN 32 009 656 740. AFSLNo 244616.
Slide 2: Introduction and progress over two years
For personal use only Thank you Roger and good morning ladies and gentlemen. It is a little over two years since I started at BOQ and, in that time, the organisation has made significant progress in responding to the issues it faced as well as establishing the foundations that will underpin future g
Slide 3: Four pillars strategy progress and credit rating upgrade
In the last 12 months, we implemented and made significant progress with our new four pillars strategy: • a new executive team has had the first year together and has performed strongly over the course of the year; For personal use only • we opened up new ways for our customers to do business with u
Slide 4: Underlying profit, capital and dividend
For personal use only As mentioned, the work we have done is driving stronger financial returns. Underlying profit was up 8% year on year, a direct result of our disciplined approach to growth, margin and expense management. Our capital position remained strong with common equity tier 1 and the tota
Slide 5: Performance versus the major banks
For personal use only As we break down the performance a little more, this chart shows our performance for the financial year compared favourably with that of the major banks. We were more than competitive on all key measures including: • total shareholder return, which at 86% was better than any of
Slide 6: Management targets met
For personal use only Further evidence of our progress was provided by the fact that we met six out the seven key management targets we had set ourselves. I’ve touched on most of these areas already but I wanted to talk briefly about the management target we didn’t meet – retail lending growth – bef
Slide 7: Four pillars: distribution and risk/return
For personal use only Turning to our strategy, we have made good progress on each of the four pillars. Multi-channel distribution Although our owner-manager and branch network has always been, and will continue to be, an essential part of our distribution network, it is important we give customers m
Slide 8: Operational excellence and culture
We also introduced a new balanced scorecard for owner-managed branches that balances lending, deposits, cross sales and compliance components and closely aligns the interests of owner-managers and BOQ. For personal use only Operational excellence Operational improvements mean we are now a far fitter
Slide 9: Market confidence and share price
For personal use only Over the last two years, we’ve spent a lot of time in front of the market explaining what we’ve changed about our business and the difference that these changes will make in the future. In that time, we have delivered steady improvements with each reporting period and have been
Slide 10: Outlook: execution
For personal use only Looking forward, as it has been for the past two years, it’s all about execution. We’re largely implementing strategies that others have successfully implemented – it’s basic banking done well. Our ability to build great relationships with our customers sets us apart from our c
Slide 11: Economy and Financial System Inquiry
For personal use only Before finishing up, I want to spend some time talking about some of the challenges our market and regulators – and those around the world – are grappling with and the challenges and opportunities that the Government’s upcoming Financial System Inquiry provides. Roger has alrea
Slide 12: Regulatory costs and too big to fail
The simple fact of the matter is that the pace and volume of regulatory reform in recent years has increased. As a result the costs of compliance are increasing and this cost is falling increasingly heavily on the smaller businesses where the ability to ameliorate the cost over a small expense base
Slide 13: Market concentration of the Big 4
As the banking system becomes more concentrated and complex, that further increases the financial stability risks making the ‘too big to fail’ problem even more acute. With a combined share of around 85% of the market, the Big 4’s market share is For personal use only as concentrated as it has ever
Slide 14: Residential mortgage risk weightings
For personal use only An example of how the current regulatory system favours the majors is the issue of the residential mortgage risk weightings. What this effectively means is that if any customer were to walk into one of the major banks for a home loan, the major bank would hold as little as one
Slide 15: Housing bubble question
For personal use only Finally, the inevitable question that has been front and centre at all recent Bank AGMs is whether there’s a housing bubble developing and are we at risk? Real Estate prices are up with capital city dwelling prices for the 8 National City index up 1.6% month on month, 3.7% quar
Slide 16: Closing remarks
For personal use only In closing, I would like to express my appreciation to the Board, my colleagues and all BOQ people for their efforts over the past year – your hard work was crucial to the company’s improved performance over the last 12 months. I would also like to thank shareholders for your o
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