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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 7/12/2013 |
The economy performed poorly in the September quarter, but that's OK. It was all Labor's fault, but now Labor is out. From here on it will be the Coalition's watch and everything will be much better. Or not. At least from here on Joe Hockey will be talking the economy up - as a treasurer should - not talking it down.
The Age 7/12/2013 |
Washington H. Soul Pattinson shareholders were told their dividends could be threatened and the company forced to sell assets if a restructuring put forward by dissident shareholders Perpetual and M.H. Carnegie wins support.
The Age 7/12/2013 |
Local shares had their worst week in six months as signs of improving economic conditions in the US made global investors nervous that the Federal Reserve might start withdrawing its stimulus as early as this month.
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