BOQ - Bank of Queensland

[divs4ever]

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

there are almost annual rumblings and urgings for a mid-tier bank shake-up , and SUN seems like it is abandoning banking

i have canceled my top-up order for BOQ and added extra HLS instead , am quite happy for BOQ to battle on as it is , i doubt Barclays will lob in an offer that appeals to me

 

[KevinBB]

there are almost annual rumblings and urgings for a mid-tier bank shake-up , and SUN seems like it is abandoning banking

i have canceled my top-up order for BOQ and added extra HLS instead , am quite happy for BOQ to battle on as it is , i doubt Barclays will lob in an offer that appeals to me

You're forgetting the economic outlook, or my perception of what will happen should the major economies continue on their current path with higher interest rates and inflation and lower long term growth. I'm not suggesting that BOQ is the ideal choice, but I do think that bank returns will hold up, especially with the major banks, whereas returns from other sectors might not hold up as well.

Interesting times.

KH

 

[divs4ever]

You're forgetting the economic outlook, or my perception of what will happen should the major economies continue on their current path with higher interest rates and inflation and lower long term growth. I'm not suggesting that BOQ is the ideal choice, but I do think that bank returns will hold up, especially with the major banks, whereas returns from other sectors might not hold up as well.

Interesting times.

KH

my view of the outlook is terrible ( and not just the banking sector ) when i went to Perth in 2012 i was impressed by BOQ's aggressive push into WA , back then ( and even now ) i thought WA was the growth potential of Australia , so BOQ grabbing a foothold was a good thing , long term

now the thing to watch is the success ( or failure ) of CBDC's if CDBCs become widespread why would you need a bank ,

 

[KevinBB]

now the thing to watch is the success ( or failure ) of CBDC's if CDBCs become widespread why would you need a bank

Banks create money and give it to consumers in the form of a loan under the guidance of their respective Central Banks. That's why banks, in one form or another, will always exist.

I'm not too worried about CBDCs, all they will be is a representation of money already in circulation. Ultimately, my best guess is that CBDCs won't be implemented without some involvement of the major banks (at least).

KH

 

[divs4ever]

Banks create money and give it to consumers in the form of a loan under the guidance of their respective Central Banks. That's why banks, in one form or another, will always exist.

I'm not too worried about CBDCs, all they will be is a representation of money already in circulation. Ultimately, my best guess is that CBDCs won't be implemented without some involvement of the major banks (at least).

KH

now that is what you would think , am thinking banks would become the financial equivalent of the Telstra shop ,
would the banks be OK with that , accept the public/customer abuse ( and other complaints ) but able to little more than send an email elsewhere ( or phone the police ), for a crappy commission

now someone like MQG will most likely find a vein of silver to mine among all this but what about the other banks , many businesses will become meaningless .. say tax accountants ( all calculated and deducted from your UBI )

and productivity will stop like it is hit by a train ( you will own nothing so no incentive to work hard )

and to revisit your original point the GOVERNMENT now creates the currency ( and controls it ) would backs give up their printing press and grip on financial leverage

 

[DrBourse]

BOQ recently appeared on my radar as being Undervalued… been watching it since 28/4/23 when the CCI (pages 108 & 109) crossed up through its WMA from Oversold Territory (pages 37 to 43)…. BOQ will become extremely interesting to ME "if & when" the MFI (page 95) crosses up through its WMA…. Note that the SP has bounced off the Bottom Linear Regression Line twice in the past week or so…. And the last 4 candles were green… and a few other Minor Indicators like the Stoch & ROC followed the CCI lead… The MFI is the "Calming and Confirming Influence" of Indicators…

The BOQ Financials are Very Good IMO..

Remember to DYOR – My Analysis suits My Needs – My Analysis may be totally wrong for your Trading Style…

Cheers…
DrB.

 

[frugal.rock]

 

[So_Cynical]

BOQ looks cheap, has some recent issues with compliance (like many others before) and that seems to have spooked some of the more conservative holders, small dividend cut to fund an extra 50 million provision didn't help ~ 37 month low looks to be an opportunity.
~

 

[galumay]

I reckon its a better short opportunity, its the Aussie bank most likely to go under.

 

[frugal.rock]

BOQ looks cheap, has some recent issues with compliance (like many others before) and that seems to have spooked some of the more conservative holders, small dividend cut to fund an extra 50 million provision didn't help ~ 37 month low looks to be an opportunity.
~
View attachment 158025

Agree, looking cheap, and I've bought some this week.
Seems to have found its low point for a while, hoping so anyway. (Daily chart only, not showing on weekly or monthly- punt taken)
Posting so I can look back in a year for a rethink!
Dividends and DRP are part of the plan.

 

[eskys]

Will be nice if it becomes a target for Which Bank

 

[frugal.rock]

They are the only bank that ever sent me a cheque due to a error, found apon audit of previous home loans.
Only $~250, but still.
'Twas back when all banks charged a myriad of fees and charges.

 

[eskys]

That's a nice change, frugal.rock.

BOQ prides itself on customer service, so perhaps not a surprise it was honest.

Was looking at volumes traded on Friday. The said bank's volume was up. ANZ had a big jump, followed by Westpac. The other two majors did well too. Noticed a big change in volume on Friday, some argue it's due to option expiry, but when I looked at last month's data, there wasn't much interest then.

Hope this past week's momentum keeps up into the new trading week tomorrow.......good luck

 

[rcw1]

Good evening,
Reported today (11/10/23) via New Corp ...

Glen Norris
October 11, 2023 - 6:37PM
The Australian Business Network

The bank has capped off a horror year after announcing a 70 per cent slide in profit amid higher restructuring costs, regulatory action and pressure on mortgage margins.

Bank of Queensland predicts more hardship for its customers as a mortgage crunch and cost of living pressures continue into next year.
BOQ chief executive Patrick Allaway said that while the overall Australian economy remained resilient, supported by low unemployment and strong cash savings, interest rates were “likely to stay high for longer.”

‘You have got to anticipate stress on the economy given the series of interest rate hikes,” said Mr Allaway as he announced profit at the 149-year-old lender had slumped 70 per cent. “Our customers are likely to experience further cost of living hardships going into 2024 but we are there to support them. Interest rates are likely to stay higher for longer.”

BOQ is seeing an increase in arrears and financial hardship requests, which was expected given the interest rate cycle and inflationary pressures. The bank had approved 3694 financial difficulty applications but arrears and hardship volumes were stabilising.

BOQ capped off a horror year with a slide in annual profit as it fell foul of regulators and faced stiff headwinds in mortgages.

The lender reported profit for the year of $124m impacted by goodwill impairments, integration costs and higher capital requirements imposed by the banking regulator.

Mr Allaway said the lender recognised it had been a difficult year for shareholders and “took accountability for the operational risk failings.”

“Our results reflect the market cycle and the business in transformation,” said Mr Allaway. “We have high conviction in our strategy and a clear road map in place to deliver a stronger, simpler, digitally enabled, low-cost bank with exceptional customer experience. Our increased financial resilience and higher liquidity allowed us to navigate the period.”

The company declared a second half dividend of 21 cents per share, bringing the full-year dividend to 41 cents. The shares slumped 7.1 per cent to $5.35.
Mr Allaway, the former chairman who took the top job in March after the departure of George Frazis, said the bank was managing “what we can control in current market conditions” and positioning for recovery when the cycle turned. Citi described the result as “very weak” and that management will have a tough task in building credibility.

Mr Frazis parted ways with the 149-year-old bank last December amid the board’s plan to change the bank’s strategic priorities. Mr Allaway led the BOQ board that ended Mr Frazis’s employment after deciding he was not the right fit. Despite a global search for Mr Frazis’s replacement, Mr Allaway in the end won the job.

BOQ announced last month it would take a hit to full-year earnings as it slashes 250 jobs to streamline operations, upgrade systems and complete the integration of online lender ME Bank, which it bought two years ago.

The Australian Prudential Regulation Authority in June said it would require the Brisbane-based bank to set aside an additional $50m as well as improve its risk management and compliance with anti-money laundering and counter-terrorism financing laws. BOQ said both the lending and deposit markets remain highly competitive amid a string of interest rate hikes. The bank’s mortgage lending portfolio had contracted 1 per cent as pressures on the market persisted through the year. But the group achieved $3.1bn growth in retail deposits, which provided a lower cost and more diversified funding source.

Cash earnings fell 8 per cent to $450m for the year with the result impacted by a $200m impairment of goodwill, $57m in integration costs for ME Bank and a $42m provision for its remedial action plans. BOQ said it had undertaken a group-wide review of its operating model that had focused on addressing the bank’s complex operating structure and operating costs.

Mr Allaway said the integration of ME Bank was complete, with the brand set to become BOQ’s first fully-digital operation. “It was a good investment and has given us broader geographical scope,” he said. BOQ purchased ME Bank in 2021 for $1.32bn. ME was formed in the 1990s as a “digital bank” with no physical branches.

 

[eskys]

BOQ doing ok at this time, depth looking better than end of day yesterday (bought some yesterday)

 

[eskys]

They couldn't dump this stock fast enough yesterday. Right now it's up 23 cents (4.3%)

 

[TimeISmoney]

Distant rumours of a takeover for BOQ, the SP was dormant for a while but just recently jumped tall buildings.



Suitors are understood to have been circling Bank of Queensland for potential acquisitions, but have walked away after determining there is no obvious deal to do.

It comes after Bank of Queensland announced in April that it was launching a strategic review of the business.
Shares have rallied of late, but analysts attribute some of the uplift to the prerelease of results by rival Bendigo Bank for the 10 months, showing that its margin is improving.
Bank of Queensland’s market value is currently $4bn, and the view is it is priced at a level that is not appealing for a deal.

But that has not stopped various suitors weighing up the business and its assets for possible buying opportunities.
With respect to its strategic review, analysts believe that Bank of Queensland’s options to ensure its viability as a lender competing with the major banks include the fact that it can shrink, aggressively securitise its loans (where they are held for a short time before being sold into the bond market), originate loans without financing them or sell assets.

​

https://www.theaustralian.com.au/business/dataroom/suitors-examine-boq-assets-but-no-deal-in-sight/news-story/29d3a9711284d49adb14e1155697ed76?amp

 

[TimeISmoney]

Far out that was close, only sold last week, the price has gone in free fall.

‘Not sustainable’; BoQ sacks 400 staff, buys out branches in revamp​

Bank of Queensland’s business model is no longer sustainable, says its chief executive, Patrick Allaway, who will take control of the regional lender’s long-standing franchise network and sack one in every 12 of its employees as part of a drastic, $160 million revamp to ensure its survival.

 

[divs4ever]

yep ,

it is just announced it is eradicating the poison pill that prevented an easy take-over

has been removed from ( very low priority ) on my watch-list

so will BEN make an offer sooner rather than later or will somebody different wait until this is a much smaller cap. share

 

[TimeISmoney]

yep ,

it is just announced it is eradicating the poison pill that prevented an easy take-over

has been removed from ( very low priority ) on my watch-list

so will BEN make an offer sooner rather than later or will somebody different wait until this is a much smaller cap. share

A bit suspect, it struggled to pass $6.30 all year and then spiked up to $6.45 on the day of the announcement and now dropped down to a low $6.