Earlier this week it was the surprise departure of Michael Cameron as CEO of Suncorp, on Wednesday its smaller Brisbane-based rival, Bank of Queensland revealing that chairman Roger Davis will step down from his position in October.
Morgan Stanley envisages ongoing challenges for the bank's retail network because of weak mortgage loan growth, downward pressure on margins and the need for significant investment. Another dividend reduction is probable if profitability continues to fall.
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.
Following the first half result, Credit Suisse downgrades earnings by -3-8%, envisaging the bank will struggle to offset increased costs. The broker's dividend profile is also lower, reflecting a more sustainable payout ratio.