Bank of Queensland has appointed George Frazis as CEO, to take over September 5. Mr. Frazis was formally the chief executive of the consumer bank at Westpac ((WBC)). Citi expects investors will be optimistic about the appointment and believes Bank of Queensland is well-placed as a likely participant in any industry consolidation.
As a stand-alone entity, upside earnings risk and falling funding costs, as well as improved property sentiment, need to be balanced with downside risk associated with any potential investment to position the bank for growth, the broker assesses. Neutral rating and $9.50 target maintained.
Target price is $9.50.Current Price is $9.63. Difference: ($0.13) – (brackets indicate current price is over target). If BOQ meets the Citi target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).