BOQ - Bank of Queensland

[sptrawler]

BOQ profit down 8% year on year and divvy cut to 34c

Down 4.5% to $9.00 - which is where they were after the profit warning.

It will be interesting to hear WBC and NAB results, they will be a bit of a bellwether, for the future direction of the sector. IMO

 

[kahuna1]

Yuk yuk and expected YUK ...

One hand, the stock was already expecting to have a cow after the warning. Other is the dividend which still is seemingly ok. Its a bit low on reserves and the payout ratio is ok to fill this void I believe.

With rates here likely on hold, if not lower so NO higher for the next few years, a dividend at 68 cents for the year, earnings of 82 so, 83% payout is possibly going to need to be cut a little.

So at 65 cent dividend at what point does the risk reward ratio ... and return become worthwhile ?

I suspect its not too far away unless there are more gremlins in the closet. At $8.50 accepting some more cuts to the overall dividend, a yield of 7.65% seems ok to start at least adding slowly. Famous last words of course.

 

[JTLP]

Even if the dividend drops 30% (think capital preservation), that’s still a yield of 7.2%. The real watch out will be slowing revenue / over exposure to QLD resi.

Nailed it. Still won’t touch it.

 

[So_Cynical]

RE is going to get worse before it gets better - therefore the bottom is not in for the banks.

 

[kahuna1]

Wow ...


Well reduced and cut in half the gifts from $8.50 recently ... and just dumped the rest at $9.50 despite the dividend.

The results were, as expected awful.
That the market rallied off the low of $9.20 today to now over $9.50, well .... taking a 14% or so return for not so long a hold, is good enough. Got one dividend and the rest cap appreciation

My issue with this stock after reading their results are ... massive. The management looks to be stupid at best in the very fragile Qld property market which, well, on any downturn is the hardest hit of all.

The yield say at a reduced divined of 62 cents is ALMOST identical to the larger big 4 banks. Why would you buy a rowing boat with holes in it ? For the same price and yield of a much larger and diversified bank ?

I really dont care what the MD said at his just released briefing, the accounts said enough and whatever spin he put on them obviously worked for the 3% bounce and an exit I gladly take.

Still have interest, if they pay me to take the bloody risk and that's well below $9- and in the $8.50 region again.

 

[PZ99]

In the $8.50 region again but then this Cap Raising: The final price for the placement will be determined by a variable price bookbuild across A$7.69-A$7.78 for each new share, representing a discount of between 10% and 11% on the last closing price Friday. The placement will see about 32.5 million new shares issued, based on a A$7.69 floor, representing about 8% of its existing issued capital.

Sounds like death on a stick but if it goes below $8 I'll stick a few bob in

 

[PZ99]

$7.90 so I'll stick a few bob in - only a few so I can average down if need to.

I'll be curious about the divvy - 31c last time ~ 4% for 6 months.

 

[The Triangle]

SPP has been very successful but BOQ have obviously diluted significantly and will cut the dividend further as a result - but it will still pay an acceptable %. There's still a lot of stink on the banks and mortgage brokers at the moment and I hope the negatively pushes forward consolidation among these smaller players. Based on a reasonably dividend and what I see as upside for mergers/takeover, I dipped my toes in the BOQ water today.

 

[Trav.]

I like the look of BOQ as it appears to being coming out of a period of accumulation and volume is also looking up today

Are we looking at a cup and handle formation ? not something that I look for but will be interesting to follow next week.

on watch list

 

[PZ99]

No divvy!

Happily, PZ has been trading this thing like a stone blind cowboy and got the divvy anyway


SYDNEY--Bank of Queensland Ltd. suspended its interim dividend, but said an early move to raise capital as the coronavirus outbreak was in its infancy had paid off by creating a buffer to respond to economic shifts.

The Australian bank reported a 40% drop in statutory net profit to 93 million Australian dollars (US$57.3 million) for the six months through February 29, down from A$156 million at the corresponding stage of the previous year. First-half revenue growth was flat, while operating expenses rose by 9%. Net interest margin was 1.89%, down 3 basis points from the 2019 fiscal year.

"BOQ is well capitalized, providing us with the necessary buffer to respond to rapidly changing economic conditions," Chief Executive George Frazis said. "We moved early to strengthen our capital position, raising a total of A$340 million in the recent capital raising, which included our proactive decision to increase the size of the retail share purchase plan to A$90 million."

 

[dutchie]

BOQ looking bullish if it breaks out above $8. Target $9+

 

[The Triangle]

BOQ acquiring mebank for $1.35 B. SPP @ 7.35/share. Bull Run over!!! Back to the bottom drawer with my shares. Yet to decide on participation in the SPP. Usually I don't and gamble it will drop below the SPP price. I won't be silly enough speculate on the price of the deal itself. We can look back in 12 months to determine if it was/is a good deal or not.

Need to get some consolidation in the small banks - without action none of these small ones will grow. I was hoping for a suncorp or bendigo merger - but that looks to be off the cards for now. Maybe next year. BOQ still have a very long way to go in order to 'own' that 5th spot and there will definitely be a scramble for it this year.

 

[The Triangle]

Took my full entitlement and the additional.

95% of SPPs I wont participate in but this is ridiculous. SP has been trading high 8s low 9s, and investors had the chance to acquire shares at 7.35 - and didn't.

So thank you to all the people who did not take up their spp.

I'll dump some of these additional shares rather quickly.

 

[divs4ever]

BANK OF QUEENSLAND NEW EXECUTIVE APPOINTMENTS

Tuesday, 21 September, 2021 (Brisbane): Bank of Queensland (BOQ) appoints new Chief Risk Officer and Group Executive Business Banking. New Chief Risk Officer With more than 25 years senior executive experience in financial services David Watts, will join as BOQ’s Group Chief Risk Officer in early 2022.
Mr Watts has deep experience in financial and non-financial risk management and has held CRO roles at several leading financial institutions in Australia and New Zealand. Mr Watts comes to BOQ directly from IAG, Australia’s largest general insurer, where he has been Group CRO since 2018. Prior to this,
Mr Watts spent seventeen years at NAB and nine years at Westpac in a variety of senior executive roles including CRO roles at both institutions. He has led major transformation programs and is a proven leader known for embedding strong risk culture in organisations. Current Chief Risk Officer Adam McAnalen will remain an executive within the Group and will be moving into a new role to lead key elements of the integration and transformation program. Mr McAnalen will remain as Group CRO ahead of a transition to Mr Watts. New Group

Executive BOQ Business Chris Screen, currently BOQ’s Chief Product Officer, has been appointed to the role of Group Executive Business Banking. Since joining in 2019, Mr Screen has supported key turnaround programs across the Bank and was the interim Group Executive for Retail Banking. He has extensive business banking experience and has held executive roles at Westpac, St.George and NAB. Mr Screen’s appointment is effective from 1 October 2021.
Having provided valuable leadership of the Business Bank amid a challenging period impacted by Covid-19 disruption, Fiamma Morton has decided it is the right time to pursue other opportunities and will depart as Group Executive BOQ Business. ENDS Authorised for release by: The Board of Directors of Bank of Queensland Limited

DYOR

i hold BOQ

another shuffle of the deck chairs

have been disappointed with this since buying in during 2011 and 2012 ( but took some cash off the table in 2016 )

but by the same token it hasn't been on the trail of infamy like WBC and ANZ ( but i feel BOQ missed grabbing extra market share )

time will tell but am apprehensive when i see the CVs of the new directors , what are the chances they cherry-picked the quality players at these huge corporations

 

[divs4ever]

Took my full entitlement and the additional.

95% of SPPs I wont participate in but this is ridiculous. SP has been trading high 8s low 9s, and investors had the chance to acquire shares at 7.35 - and didn't.

So thank you to all the people who did not take up their spp.

I'll dump some of these additional shares rather quickly.

you are welcome

is about a six dollar share in my estimation

good luck

 

[Miner]

Just cut and paste from a long report published from FP today. It is within copyright scope so not breaching any rule here.
I am presenting to learn from the eminent chartists if they agree with the comment on BOQ that it has reached break out level to go up .

 

[divs4ever]

Just cut and paste from a long report published from FP today. It is within copyright scope so not breaching any rule here.
I am presenting to learn from the eminent chartists if they agree with the comment on BOQ that it has reached break out level to go up .
View attachment 134067

is probably about time for a bank with strong ambitions since 2012

but am still sticking with my previous valuation ( despite paying more over the last 10 years in my several buys )

let's see how BOQ will handle a property price downturn ( one must happen , eventually )

 

[divs4ever]

RESPONSE TO MEDIA SPECULATION

Thursday, 30 December 2021, Brisbane: Bank of Queensland Limited (ASX: BOQ) notes the media
speculation overnight regarding a possible transaction between BOQ and Humm.
BOQ is not pursuing the transaction as speculated in the media article.
BOQ confirms that it is in compliance with ASX Listing Rule 3.1.
ENDS
Authorised for release by: Chairman, Bank of Queensland Limited

i hold BOQ

 

[KevinBB]

This is a funny one. The way that branch ownership is structured is surely a burden for the Board, and all those that look at the company as a long term investment. There aren't too many ways of getting rid of the branch structure, but one of them is to either merge, or to be sold.

Now, CEO of Barclays, this is directed at you. I'm sure you read at least a few of the posts on ASF, especially the ones that mention Barclays.

Barclays has recently been granted license to operate as a foreign ADI in Australia. Now, wouldn't it be more simple to take over an existing banking structure, a structure that you will get for a greatly discounted price? Surely yes! So, Barclays, BOQ is for you.

In anticipation of a shake-up in the banking industry during 2022, BOQ is my pick #4 for the 2022 Full Year Tipping Competition.

KH

 

[frugal.rock]

Beware ex-dividend day ?
The stock market ATM is like feeding time at at a fish farm. Little concentrated areas of frenzied over reaction.