Bank of Queensland Ltd
BOQ: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$3.60 | Lwrd | Ckkchlf |
Bank of Queensland’s Earnings Growth Built on Cheap Customer Deposits
Bank of Queensland’s result was a little stronger than we expected. Cash earnings increased 9% on first-half fiscal 2020, largely a result of net interest margins, or NIM, increasing 6 basis points to 1.95%. NIM expansion reflected cheap funding from increased customer deposits, specifically savings (up 16%) and transaction account balances (up 24%). The earnings turnaround from the second half of fiscal 2020 is even more pronounced, up 66%, after the bank booked significant loan loss provisions last year.