Bank of Queensland’s first-half result missed the broker on slower revenues and higher expenses. As the broker had expected, following APRA’s directive, the bank has deferred its interim dividend. On the expectation of increased loan impairments, the broker cuts FY earnings forecasts by -12%.
The broker retains Hold and a $5.00 target, while warning of further earnings and dividend downside risk dependent on ultimate virus impact, with impairments being the the most uncertain element.
Target price is $5.00.Current Price is $5.04. Difference: ($0.04) – (brackets indicate current price is over target). If BOQ meets the Morgans target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).