Bank of Queensland Limited (BOQ)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today Ľ it's FREE! Already a member? Login now!

General Information
Company Name: Bank of Queensland Limited
Stock Code: BOQ
GICS Sub-Industry: Diversified Banks
Market Cap ($M): 4,940
Equiv. Shares (M): 367

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 13.680 $ 13.660 $ 13.690 $ 13.570 $ 13.460 849,389 $ 0.220  1.634 %

Current Broker Consensus Recommendation more
Recommendation: Hold (3)
Recommendation Date: 26th Mar 2015
Brokers Surveyed: 4

Company Overview

Business Description:
Bank of Queensland Limited (BOQ) is an Australia-based entity engaged in retail banking, leasing finance and insurance products. The Bank operates in two segments: banking and insurance. BOQ's operations comprises of Banking, BOQ Finance, BOQ Specialist, St Andrew’s insurance and Virgin Money Australia.

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.

Financial Summary
Year to Aug NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 399.9 106.2 6.9 12.7 77.0 5.7 100.0
2015  F 368.6 99.4 11.1 13.6 72.0 5.3 100.0
2014  A 301.2 89.5 13.3 13.3 66.0 5.6 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
ANZ Bank (ANZ) $101,788 M 0.2133 0.0336 0.0388 14.0217 13.5663 13.0594 4.84 5.07 5.33
Bank of Queensland (BOQ) $4,969 M 0.1538 0.1389 0.0379 15.4284 13.5468 13.0519 4.87 5.51 5.88
Commonwealth Bank (CBA) $152,955 M 0.1201 0.0847 0.0561 17.8020 16.4127 15.5405 4.25 4.56 4.81
National Aust. Bank (NAB) $94,012 M -0.1382 0.2726 0.0760 18.1831 14.2883 13.2788 5.10 5.37 5.68
Westpac (WBC) $122,311 M 0.0976 0.0309 0.0521 15.9162 15.4391 14.6740 4.64 4.86 5.07

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
BOQ 0.69 14.2 1.46 1.37
Market 0.89 16.5 1.30 2.40
Sector 0.83 15.1 1.46 1.81

Name Position Start Date
Mr Jon Sutton Chief Executive Officer,Managing Director 05 January 2015
Mr David Stephen Willis Non-Executive Director 22 February 2010
Ms Carmel Therese Gray Non-Executive Director 06 April 2006
Mr Richard George Andrew Haire Non-Executive Director 18 April 2012
Mr Bruce James Carter Non-Executive Director 27 February 2014
Ms Michelle Kim Tredenick Non-Executive Director 22 February 2011
Ms Margaret Leone Seale Non-Executive Director 21 January 2014
Mr Neil Anthony Berkett Non-Executive Director 30 July 2013
Mr Roger Andrew Davis Non-Executive Director,Non-Executive Chairman 20 August 2008

Name Position
Brian Bissaker Chief Executive Officer, Virgin Money Australia
Anthony Rose Chief Financial Officer
Julie Bale Chief Information Officer
Peter Deans Chief Risk Officer
Melissa Grundy Company Secretary
Brendan White Group Executive, Business Banking, Agribusiness & Financial Markets
Karyn Munsie Group Executive, Corporate Affairs, Investor Relations & Government Relations
Matthew Baxby Group Executive, Retail and Online Banking

Calendar of Events
Date Event
24 March 2016 Report (Interim)
23 October 2015 Report (Annual)
08 October 2015 Report (Prelim)
12 May 2015 Div Pay Date
20 April 2015 Books Close
16 April 2015 Div Ex Date
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing in Fixed Income

An educational booklet with information on how to earn more than bank interest on the cash in your investment portfolio.

More details...


Markets melt up

By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 | Traders and investors caught short heading into the FOMC scrambled for cover in Europe and the US, in many cases driving indices to their best one day performance for 2015.

Aussie Investors take their foot off the accelerator

By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 | Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.

Fed Feeds Frenzy

By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 | In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.

Household brands Woolworths and Telstra Heavy Lifting

By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 | Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.

Steady open as Woodside investors wait on details of possible Wheatstone acquisition

By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 | Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.

MYEFO and Lima - December could be nasty.

BR Securities Australia Pty Ltd 2/12/2014 | December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.


Sponsored Links