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Bank of Queensland Ltd BOQ

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Morningstar’s Analysis

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Bank of Queensland Loan Growth and NIM Impress, but Is the Cost Too Great?

Nathan Zaia Equity Analyst

Analyst Note

| Nathan Zaia |

Bank of Queensland’s fiscal 2021 cash profit beat our forecasts by 6.5%. Loan growth of 8% was stronger than our 5% forecast, but didn’t come scot-free, with a 3% increase in operating expenses higher than we expected. Profit increased 83% on last year to AUD 412 million, with large loan loss provisions booked last year and the acquisition of ME Bank flattering growth rates. Profit before loan impairments and ME Bank contributions were up a still solid 8%, which reflects the bank’s good loan growth and 4 basis point improvement in net interest margins, or NIMs.

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Company Profile

Business Description

Bank of Queensland, or BOQ, is an Australia-based bank offering home loans, personal finance, and commercial loans. BOQ operates both owner-managed and corporate branches, and is the owner of Virgin Money Australia. Its BOQ business includes the BOQ branded commercial lending activity, BOQ Finance and BOQ Specialist businesses. The division provides tailored business banking solutions including commercial lending, equipment finance and leasing, cashflow finance, foreign exchange, interest rate hedging, transaction banking, and deposit solutions for commercial customers.

Contact
100 Skyring Terrace, Level 6
Newstead, QLD, 4006, Australia
T +61 732123333
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings
Fiscal Year End Aug 31, 2021
Stock Type
Employees 2,218