Bank of Qld’s profit missed the broker by 4% on lower than expected revenue growth. The bank surprised with announced mortgage repricings of 12bps for owner-occupiers and 25bps for investors.
The repricings will put BOQ ahead of the sector and provide a short term earnings boost, the broker suggests, but if the majors do not match the increases, competition will be a problem. Target falls to $12.00 from $12.50. Neutral retained.
Target price is $12.00.Current Price is $11.45. Difference: $0.55 – (brackets indicate current price is over target). If BOQ meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).