Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — ASX CEO Connect (May 2018)
20 slides from Bank Of Queensland's conference presentation, May 15, 2018
Slide 1: ASX CEO Connect
ASX CEO Connect hb. 15 May 2018 Bank of Queensland Jon Sutton Managing Director & CEO DATA FOR THE HALF YEAR ENDED 28 FEBRUARY 2018 Bankof Queensland Limted ABN 32009 656 740. AFSL No 244616.
Slide 2: Disclaimer
DISCLAIMER This is a presentation of general background information about Bank of Queensland Limited's (BOO's) activities at the date of this document. Itis in summary form and does not purport to be complete. It should be read in conjunction with BOQ's other periodic and continuous disclosure annou
Slide 3: For personal use only
For personal use only Good morning everyone, it’s great to be here. For those not familiar with the Bank of Queensland (BOQ), I’ll provide a brief overview of our history and strategy: • BOQ was established in 1874 as the first Permanent Building Society in Queensland. Today it has evolved into a bu
Slide 4: For personal use only
level of support to business banking customers which is unique to that offered by other banks. • We operate a number of brands including BOQ, Virgin Money Australia, BOQ Finance and BOQ Specialist. • We acquired Virgin Money Australia in 2013, and at the time it was For personal use only a distribut
Slide 5: For personal use only
For personal use only It’s also worthwhile talking through our reporting segments, which reflect the way we manage the business day to day. • Retail Banking includes housing loans and deposits originated through the branch network, direct channels, Virgin Money Australia and our mortgage broker dist
Slide 6: For personal use only
For personal use only We recently reported our 1H18 results, of which the highlights included: • Improved lending growth, supported by our commercial niche segments, as well as home loan growth through the Virgin Money, BOQ Specialist and BOQ Broker channels. • Both Retail Bank and BOQ Business are
Slide 7: For personal use only
For personal use only Looking at the key financial elements of the result: • Cash earnings after tax of 182 million dollars increased four per cent on 1H17. • Earnings per share was 46.5 cents. This represents an increase of two per cent on 1H17. • Return on equity increased 10 basis points to 9.9 p
Slide 8: For personal use only
For personal use only The key drivers of these results included: • Total lending growth of $671 million in the half representing an uplift of more than $800 million compared to the contraction of $157 million in the first half of 2017. • Net interest margin increased one basis point from last half t
Slide 9: For personal use only
For personal use only Looking at lending growth in more detail: • We are seeing improvements in both housing and commercial loan growth. • In housing, BOQ Broker, Virgin Money Australia and BOQ Specialist have all made strong contributions. • We have also seen improvement in the branch network as br
Slide 10: For personal use only
For personal use only • Retail Banking has continued to diversify its channels. BOQ Broker and Virgin Money Australia contributed 40 per cent of Retail’s home loan settlements in the first half of 2018. • Overall, housing loan settlements increased 19 per cent compared to the same time last year. Th
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For personal use only • The BOQ Business division has continued to benefit from maturing its niche strategy across commercial customer segments. It achieved commercial loan growth of nearly 300 million dollars. • This has been delivered across target segments that seek a real relationship banking pr
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For personal use only • Our asset quality remains sound, which is clearly evident across a number of metrics. • Impaired assets have reduced to 39 basis points of total loans. • Impairment expense has remained steady at 10 basis points of total loans. • Our arrears trends remain benign, with the exc
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For personal use only • We have continued to search for and extract efficiencies across the business. This has enabled us to reduce core expenses by four million dollars compared to last half. • At the same time, we have been investing for the future with a large number of transformation initiatives
Slide 14: For personal use only
For personal use only • Our capital levels remain very strong. • Following the Basel and APRA papers released in the past few months, we remain comfortable with our position. Relative to our peers, we are in a very strong position as a standardised bank at 9.42 per cent CET1. • Our interim CET1 targ
Slide 15: For personal use only
For personal use only In terms of the external environment, there is a lot to talk about in the sector. • With increased regulatory and public scrutiny of the banking sector, there is no doubt that conduct and trust remain a core focus for the industry. At BOQ we are very aware of these challenges.
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• In terms of the economy, we remain cautiously optimistic. Although credit growth has been slowing, the other macro indicators are mostly heading in the right direction. • There are signs of improvement in the Queensland and Western Australian economies, while New South Wales and Victoria continue
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For personal use only In this environment, our long term strategy remains the right one. We are building out our business bank and opening up new retail channels. • We remain focused on improving user experience in our digital offering. To do this, we are upgrading our online platforms and partnerin
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that will bring us closer to our customers and enable us to provide them with a differentiated service offering. For personal use only 15
Slide 19: For personal use only
For personal use only In summary, since 2012 BOQ has consciously evolved. • In the retail space, we have gone from being a mono-line distribution business to a diversified multi-channel retail bank. On the commercial side, we are now a niche specialist business bank with a focus on higher growth sec
Slide 20: For personal use only
the issues that are emerging from the Royal Commission. • Maintaining discipline around how we invest and spend remains a priority. Given the pace of change, this is essential so we can continue to invest for the future with a strong focus on improving customer experience. For personal use only • Ou