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Business Description: Bank of Queensland Limited (BOQ) is a financial institution offering core banking (commercial/retail) services, equipment finance, wealth management and insurance. BOQ uses its unique concept of the Owner-Managed Branch (OMB), which is a partnership between the Bank of Queensland (franchisor) and experienced bank managers (franchisees) to provide banking services.
Strategy Analysis: Growth has been driven by acquisition and the interstate Owner Management Branches (OMB) rollout program. Total OMBs of 198 include 115 in Queensland. In addition BOQ operates 71 corporate branches and 8 transaction centres. The expansion strategy clearly has not worked despite successfully delivering a two-and-a-half times increase in assets over the past five years. During the same period ROE has more than halved from over 12% in FY06 to 1% in FY12. The cost to income ratio declined following considerable work on driving down the cost base. BOQ is targeting a medium term cost to income ratio in the low 40% range. The key challenges facing BOQ in the short term is maintaining the recovery in asset quality and improving return on equity. Competition for deposits is tough, particularly retail deposits which fund a large majority of loan growth.
Bank of Queensland reported a net loss of $17.1m for the year ended 31 August 2012. The reduction in profit after tax was largely attributable to significant loan related impairment charges. Revenues from ordinary activities were $804.3m, up 1% from last year. The major driver of the subdued income growth was the reduction in other operating income. This was offset by growth in net interest income of $28.1m (5%). Diluted EPS was (10.2) cents compared to 60.3 cents last year. Net operating cash flow was $156.0m compared to $261.5m last year. The final dividend declared was 26 cents, taking the full year dividend to 52 cents compared with 54 cents last year.
The Age 12/12/2013 |
Westpac will next year allow customers to make payments at credit card terminals through their smartphones, the latest sign of banks competing through investments in technology. From early 2014, customers with certain Android handsets will be able to access funds from debit or credit card accounts by waving their phones at merchant terminals.
The Age 12/12/2013 |
Senior National Party figure Peter Walsh has repeated criticism that the government's rejection of the GrainCorp takeover was a decision made "on the hop", and one that it might regret.
The Age 12/12/2013 |
A total of 2900 jobs to go at Holden, multiples of that likely to go in Australian supplier companies. Tony Abbott called last May's announcement by Ford that it would stop making cars in Australia in 2016 at a cost of 1200 jobs "a black day for Australian manufacturing". Holden's decision to stop making vehicles in 2017 could turn the car-making industry's lights out for good.
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